Recent content by evermore

My understanding is that weekly OTM covered calls do affect the holding period for the underlying short-term stock. Not all covered calls do this, only short-term out-of-the-money calls. The key is whether the CC is "qualified" (more than 30 days to expiration and not deep in the money; weekly...

My takeaway from the FSD videos on youtube is that whatever problems need to be fixed or improvements need to be made, none of them would be improved with lidar. If it was an open question (for some people) before, certainly now that those videos are out the question should be settled for...

He bought it back in 2017: Elon Musk now owns X.com, the defunct domain of his second startup

You may have what some brokers call "limited margin" in the IRA (you can't borrow but you can trade with unsettled funds and trade some options). Fidelity explains it best: What Is Limited Margin Trading? - Fidelity On TDA's site Margin Trading for Investment Strategies | TD Ameritrade it says...

Regarding selling weekly covered calls in a taxable account in the US, my understanding is that selling weeklies against shares held short-term may reset the holding period of the underlying shares (so they won't become long-term assets). For this reason, I'm looking at doing that only in an...

Are you planning on exercising them AH if they go ITM? My understanding is that typically one can alert their brokerage up until 5:30 to exercise a call; so if (big if) there's an announcement at 5:15 that gives 15 minutes to make the call. Is my understanding of that all correct? (I don't...

I found this page on the S&P site regarding methodology. Near the bottom are a bunch of spreadsheets, one of which is the rebalancing calendar for equity indexes. Here's a snapshot: If I'm reading that right, the actual file with the new balances for the 9/18 rebalancing is sent to SPG's...

I think I did say the trader sold calls and bought puts, and I think they did so in a bearish-favoring trade involving different strikes and dates. I'm not sure what the name of this strategy is, do you? I'm still learning. The screenshot above is from Fidelity, where I recently learned that...

That appears to be a multi-leg trade: According to options profit calculator, this looks like a substantial bet the price will drop: http://opcalc.com/dbx Entry cost: $1,094,400.00 (net debit) Maximum risk: infinite on upside Maximum return: $500,505,372.00 at a price of $0.00 at expiry...

I should be clear: I'm mostly considering the case of explicit exercise (where the call holder instructs their broker to exercise the option), as opposed to automatic exercise (where the broker automatically exercises it if it closes $0.01 in the money). I expect the automatic exercise to be...

I'd love for that to be true (I usually buy back calls for $1, but occasionally say to myself on principle "no way am I paying $5 for that, it's not going to exercise" and let them expire). I did some digging in the main thread and still couldn't find any support for expiration cutoff being end...

You may already know this; if so, consider this message for the benefit of other readers: Calls can still be exercised past the end of trading on Friday. That means that if, for example, S&P inclusion were to be announced after hours on a Friday and the share price increased in after-hours...

My experience is with Schwab: 1) $10,000. I gather not all brokerages allow such high orders, but Schwab doesn't seem to have a problem with it. 2) Schwab has a time limit, but I look at that as a plus; I don't want to forget to raise it. ;) 3) I thought a lot about this one. I am not...

This is a great find -- the research in the paper is around exactly this problem. I became curious and performed a quick read of the paper; here's my summary: There are two related problems: the first is when droplets or particles in the atmosphere occlude vision. The paper does not deal with...

I think there's another year and three months remaining. The settlement was in 2018, he stepped down in November of that year, and the ban was for 3 years, placing the end in November 2021: SEC.gov | Elon Musk Settles SEC Fraud Charges; Tesla Charged With and Resolves Securities Law Charge