Jeff 7:23 am on Thursday, November 12, 2015
Tags: ContangoETFs ( 446 ), SPXcampaign ( 2,265 )

Closing trades for margin clearance

#ContangoETFs Bought to close $ZSL Nov 20th 150 call for .25. Sold for 6.10 on August 25th
#SPXcampaign Bought to close $SPX Nov 13th 1970 puts for .15. Sold as part of 1970/1945 put spreads for 1.35 on Oct 23rd.

JohnL 7:29 am on Thursday, November 12, 2015

Good morning Jeff. Silly question, does this mean you leave the 1945 put on the table?
- Jeff 7:32 am on Thursday, November 12, 2015
  
  Not a silly question… yes, it does mean that. It is a long option and thus there is no risk anymore. If we happen to drop a lot lower today, I can probably sell them for .10 or more. But I doubt that. When closing spreads that are near expiration, you often only need to close the short, which is where all the risk is. The long will often be too far OTM to be trading at all, so trying to close as a spread can be difficult.