Last week I sold the GLD weekly 170/171 put spread 12 times. I thought it would finish above 171 so I turned off my computer. Then i saw that it finished below 171. what is going to happen now??!!?
It finished @170.85 according to what I'm looking at, so assuming you sold 'em for more than or equal to a .15 credit you're OK on that front, in that it looks like you wouldn't lose anything. Beyond that, you might get assigned on one or more of the sold 171s. Not a big chance that'll happen, but a chance. Not sure if it would have happened by now, as I've never been assigned. I'm sure someone around here would know the answer to that one.
You are going to be long GLD. Normally you would expect to be long 1200 shares in this situation, but GLD was trading higher in after hours trade, so it is possible you will not be assigned on your entire short 12 lot. If you do not have enough money in your account to handle the long GLD stock, call your broker before the opening. They may allow you to trade out of it if you do it quickly enough.
When the puts expire in the money, they will be auto exercised by whom ever is long them unless the file a contrary exercise advice form
Not necessarily so. If assigned and if GLD heads down during the pre-market, the risk could be a lot more. And conversely, a nice profit if assigned and it rises. To the OP: Deal with it in the pre-market if you're long the shares.
That first scenario is potentially pretty nasty. Hopefully things work out the way I've noticed for a while now: we seem to get a surge over Sunday night into Monday morning more often than not in gold.
You also may be able to hedge your postion with gold futures Sunday night, depending on the type of account you have.
So let me see if I understand this. You took a GLD position of 1,200 shares (worth, at the close, $205,000 or so), and you didn't know what might happen? Either you have very deep pockets and this is chump change for you, or you're exceptionally reckless. I truly hope the former, not the latter. If it is the latter, you seriously need to stop trading and study up on risk management protocols. I hope you're able to resolve this.