Selling itm (covered) calls the same as shorting the stock?

Discussion in 'Options' started by wxytrader, Sep 6, 2024.

  1. Totally...what if my power cuts out or something? I don't ever leave anything to chance. Speaking of leaving things to chance...why isn't there a checkbox when selling short spreads to close @ expiry if short strike is itm or something. On tos you could put a conditional order to close an option if price of the underlying reaches a certain price, which is great since you won't know what the future premium will be to set up a limit order.

    But instead the brokers feel it is a better idea to let the position fall into a margin call if price gets pinned between strikes and you don't close it...and then they try to put the onus on you like its your job to manage their money lol.
     
    Last edited: Sep 7, 2024
    #31     Sep 7, 2024
  2. taowave

    taowave

    So you dont know what the premium will be,but would rather have your broker go to the market to close the short leg of a spread instead of working the order yourself??

    You don't close it,that's on you






     
    #32     Sep 7, 2024
  3. poopy

    poopy


    bc it's r*tarded. You're forced to trade a complex order that nobody wants and I guarantee that the fill will be better on the separates. You're adding D1 (shares) to a D1 option ticket. It's an IQ test. lol a sudden move. \

    Embedding a synthetic into a complex ticket, i.e., embedding a bear vert in calls into a complex call spread makes sense as the synthetic is rolled into the complex order. Your sht is just dumb.
     
    #33     Sep 7, 2024
  4. What the difference between doing three separate orders and stacking one single order? Every leg of the order should be filled seperately and then the broker should figure out where everything goes.
     
    #34     Sep 7, 2024
  5. poopy

    poopy

    lol your one lot is going to blow you out? Get a VPS.
     
    #35     Sep 7, 2024
  6. Didn't you just trade a 1/2/1 MARA fly :)
    Anyway, it's a good idea. Of course, brokers aren't known for coming up with good ideas... I literally had to point out that my brokers p&l chart was broken for spreads. How does that go unnoticed ?

    I think me and you P are part of the few who actually analyze their trades.
     
    Last edited: Sep 7, 2024
    #36     Sep 7, 2024
  7. taowave

    taowave

    Dude,we have seen your trades..

    There is no analysis happening..

    There's a reason you have to worry about margin call for a 1 lot on a 15 dollar stock :)




     
    Last edited: Sep 7, 2024
    #37     Sep 7, 2024