Buy 6 QQQQ Dec '10 $33.00 calls at $4.81
Sell 3 QQQQ May '09 $34.00 calls at $0.90
The underlying hit $34 last night and then retreated to close at $33.73.
1. Would I have been exercised even though the 3 short calls are about 2 weeks from expiry?
2. How would brokers handle the fact that I don't own the underlying shares ? Would they automatically exercise 3 of my ITM $33 calls and net off the difference?