I sold an IWM iron condor with the short strikes at 190/184 while it was trading at 187 and then the price kerplunked. I let the long put run for...
Yeah I was thinking the only margin exposure would be the spread risk ..but apparently there will be a % obligation on the underlying committment.
Update. So been reading the literature at TD: Uncovered naked calls - 100% of premium LESS any otm amount PLUS subject to minimum % requirement...
Ya but it's a spread so really 100 short calls @ 416, and 100 long call options @ 417 is a $10,000 trade since that's the maximum risk, so that is...
[MEDIA] This video answered all my questions on what happens when you don't have the funds, or the shares to cover an assigment. At the end he...
Yes I totally agree. My broker doesn't allow naked calls, but does allow shorting stocks. That never made sense to me because what's the...
That's what I thought too, since you don't have the shares your account will go short triggering a margin call, but simultaneously the broker will...
Exactly! It doesn't matter how high the stock price goes, the risk is defined at 1k. There should be no requirement to cover the cost of the...
I am their client. I take the loss, the broker gets the fees, and the call buyer gets the profits. I have level 3 or whatever because I have a...
Apparently they do facilitate the trade: (Short call option) 1. You do not own the underlying stock If you do not own the underlying stock,...
Well then what's the point of entering into a spread at all? If I had the shares, or the money to buy the shares then I would just enter into a...
ABC short 100 contracts @ 4.60 strike ABC long 100 contracts @ 4.70 strike So my maximum risk is 0.10 * 100 * 100 = 1000 How would the...
Agreed...reverse splits readily get shorted right back down to the pre-split price. I think they are mostly done to jack retail who loaded up on...
Yes. 10,000 shares of ETF is now trading @ $4 1-5 reverse split (if today) ---> 2000 shares @ $20 ETF was $30 (pre-split) when gold was at its 52...
I don't think you are grasping the concept here. All I'm asking about is the affect identical market conditions would have on price action...
Ok I think we are all on the same page. I probably used a bad example so just to be clear, if stock abc was an etf that tracked gold, and when...
I understand what a reverse split is. I know it reduces outstanding shares but does not affect market cap. My question is the affect it will have...
Yes if it literally rises from $10-$15. Let's say that the abc stock had a 52 week low of $3, and a 52 week high of $15, before the split. Then...
Basically what I am wondering is, if the abc stock is trading at $2, and the 52 week high of the abc stock was $15, then if abc stock returns to...
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