Pin Risk

Oooh, nail-biting time. What's going on? Well, you wrote or sold call options on your shares of DIS with a $125 strike. The stock today trades at $123.90, and there are 9 trading days remaining until those options expire. You are near the pin, or end, of this option contract. Where will the final trade hit? What will the markets look like the next 2 weeks? Those calls you sold for $3 a share 2 months ago are either going to evaporate and become worthless if the stock remains at $125 or lower...or, if it trades above there, you're likely to have your shares called away, and/or owe the diff.

Like...if the stock goes to $126.80 in that time, you're a buck-eight in the hole. You'll still have made money in your $3/ share trade, but you would much rather make all 3 bucks rather than....less.

So that's pin risk. You're praying for a bearish market the next 2 weeks, letting those options expire and Theta to decay away to zero. Hold your breath.