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

Discussion in 'Options' started by pointbob, Sep 4, 2020.

  1. destriero

    destriero

    The CC at 405 for Sep18 is OK, but the BE is going to be around 380. Unlikely to break 430 through Sep18 which I why I prefer the synthetic straddle. Hit the bid on the 430C on Tuesday morning. He covers his margin call and benefits from stickiness and a nominal vol-drop if it rallies.

    The 430C for Sep18 should open around 17 with the shares at 380. The thing will be moving so my guess is that the peak vol will occur at the open. I would hit the bid on 40 of those 430C at the open and wait it out.
     
    #51     Sep 6, 2020
  2. qlai

    qlai

    Wouldn’t margin on 20 naked calls be substantial?
     
    #52     Sep 6, 2020
  3. taowave

    taowave

    Fuck yeah...

    Better off with Reg T than Portfolio Margin.TOS will simulate up and or down 50% for TSLA..

    Im not so sure I would be reccomending shorting calls against TSLA until I knew how much of his net worth is being exposed..

    Im assuming its decent as he was short 20 puts(again big margin),unless it was a spread and,his longs were way below??

    Dude needs to play great D..

    There needs to be an end to his pain..

     
    Last edited: Sep 6, 2020
    #53     Sep 6, 2020
    qlai likes this.
  4. i dont get why is this guy worried? so he got to buy the shares at $405. who cares? it will be at $450 next week.

    why wouldnt you get exercised? of course you will, but you received the premium, so you still won. and again $tsla will be at $450 next week.

    but im new here so...maybe i should just shet up and stay outta vet business?
     
    #54     Sep 6, 2020
  5. destriero

    destriero


    Sure, but it would probably take him off the call and he can maneuver and wing it off to a fly.
     
    #55     Sep 6, 2020
  6. destriero

    destriero


    He's received a margin call on the position and IBTWS will reduce the position until he's compliant.
     
    #56     Sep 6, 2020
  7. destriero

    destriero


    The 430C should be marketable at 19 with shares at 375-380.
     
    #57     Sep 6, 2020
  8. taowave

    taowave

    Haven't traded Reg T in a while,so I'll punt and say minimum cap hit will be 10 percent of stock price plus premium..Ball park 60 bucks per contract..most likely more..

    Does he have 240k plus??







     
    #58     Sep 6, 2020
  9. taowave

    taowave

    How many shares are you buying on the opening??

    New is one thing..Dangerous is another :)

     
    #59     Sep 6, 2020
    up300konngz likes this.
  10. destriero

    destriero


    Yeah, he does.
     
    #60     Sep 6, 2020