Moron . Naked put options otm Friday. BUT stock price went down after hours...interactive brokers

If you're selling naked puts you have to be willing to buy the stock at the strike price. You obviously are bullish on TSLA, so if assigned, you may just have to cough up $40K+ to buy the 100 shares at 405 and ride it out till the stock comes back.

 

I'm guessing this was an expiring put,but you didn't specify.Most have till 6 on Friday to exercise,though institutions manage to exercise past the"deadline"..

Assuming the put was expiring.If not,you are short a put on a,stock that's gone from 200 to 2000,much of it based on SP inclusion...

Hopefully you were short an expiring and did not get assigned..Never ever stay short ATM options in TSLA on expiry.The after our moves and manipulations will get you one way or another..

 

In case I wasn't clear,cover your expiring TSLA short options( near the money) for pennies..

 

Unless you really don't care if you get assigned.

 

You'll definitely get the put assigned. Assignment depends not only on where the stock closes, but also on what it does after hours. If I had a Tesla put Friday after 4:15 PM that went ITM, I'd simply short the underlying and exercise the put, collecting the delta. I would do that until the exercise cutoff. But how bad is it really? A $10 move of 100 shares if $1000. So from 419 to 390, that's $3000 which will be partially offset by your short shares. Probably best to just close the position and move on unless you are bullish in which case sell a call until you lose the shares.

 

I did a study on that. if i covered every option i was short when it hit a nickel, i would have to have a $20ish blow up to justify the cost every 10 months.

I've had 4 in my entire 20 year career where a nickel option went in the money. Of course, in each of those i lost like $10 a contract.

 

Had you subscribed to GummyBearAdvisors.... You wouldn't be one of those people.
And I never say "short TSLA".

Sept 2nd:

The stock split was a no-brainer to gtfo.
Whatever.
g/l though for real. Welcome to the game buddy. Life goes on.

 

Well if you do anything at the market without considering the riskiest outcome, the market will swallow you. Close the position and learn the basics before doing anything next time.

You are trading against an army of PHDs, algos and insider knowledge, if you don't get the basics you are terribly doomed.

 

100% you own shares from 405. Number of shares equal to the put qty *100. Guaranteed.

How many did you short? How many puts?

 

I concur,with the exception of that beast known as TSLA

If I am not mistaken,I don't think you can buy back anything neat ATM for a nickel...