Z13 premature excersize

Posted By: hast29

Z13 premature excersize - 06/24/22 09:19

Hi, I have experienced with the Z13, that one leg of the combo was exercised by the buyer prior to the expiration day. The manual advices "If a single leg of a combo has been prematurely exercised, close the remaining legs and the assigned underlying manually and start Z13 afterwards for entering the next combo."

Does this mean to sell the same put (combo) as the original Z13 run (with the original 6 Week expiry date) or does it mean to run Z13 from scratch and sell a 6 week put/combo ?

Thank you for the advice and explanation, any feedback appreciated, ...
Posted By: jcl

Re: Z13 premature excersize - 06/24/22 09:58

It means that you manually close the remaining open leg, if any. Then start Z13 again. It will recognize that no position is open, and then sell the next combo.
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