jeewee3000
Active Member
For the first time since I joined TMC I am holding more $TSLA stock than @Lycanthrope . I must be living in a simulation.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
So, uhm, I just discovered that one of my orders went through in the wrong account. Yay margin! I think I'm going to be finding out just how aggressively Fidelity manages my margin calls tomorrow. The first two (House and Fed) call says I have 5 days to satisfy the shortfall - of course Fidelity can close stuff earlier at their discretion.
The Exchange calls - those say 2 days to satisfy that. At least it's a Friday position - I predict aggressive closing of positions, at least partially, in my near future
Sigh
I also need to revisit that account that didn't get any positions opened - I'm missing out on income there!
So what *is* a Fed call? When I read the description it sounds like you didn’t have the margin available to place the order, and normally E*Trade just doesn’t allow me to place orders I can’t “afford”. How can you be allowed to place an order you lack the margin for and then get Fed called after it executes? Does it just mean your margin decreased between placing the order and when it was executed or the end of the day when it was executed or something?
AquaY
Member
S&P futures vs fair value: +31.30. Nasdaq futures vs fair value: +143.30.
Looks like we should have another active day
Looks like we should have another active day
jeewee3000
Active Member
800cc 10/1 OI (open interes) update:
monday 9/27: 12.600 (+/-)
tuesday 9/28: 17.355 [+4.755]
wednesday 9/29: 22.520 [+5.165]
The call wall at $800 has therefore nearly doubled since Monday. Volume on these calls was around 120k (!) yesterday, so lots of trading going on. The deeper into the week without $800 being breached the higher the probability IMO of closing below $800 on Friday.
I'm still holding on. Will only think of rolling if we breach $800 on volume.
monday 9/27: 12.600 (+/-)
tuesday 9/28: 17.355 [+4.755]
wednesday 9/29: 22.520 [+5.165]
The call wall at $800 has therefore nearly doubled since Monday. Volume on these calls was around 120k (!) yesterday, so lots of trading going on. The deeper into the week without $800 being breached the higher the probability IMO of closing below $800 on Friday.
I'm still holding on. Will only think of rolling if we breach $800 on volume.
bkp_duke
Well-Known Member
Agreed. This call wall is the only reason I haven't already rolled the BCS side of my IC up. I'm in the red because I opened that position too early, but I'm hopeful that it still ends up profitable.
Just need Elon and everyone else not to leak some earth-shattering data till after Oct 1st.
dc_h
Active Member
I wanted to sell some cc's at 820 and held out. I think there's a 5% chance that P&D numbers come out on Friday and if over 230,000, could cause a push over 800. If we get a big push up towards ATH, I want to enjoy the ride. Congress could crap on the parade, but shutdown wouldn't happen until Oct 18th.
jeewee3000
Active Member
I applaud your caution regarding calls, but P&D numbers seem unlikely on Friday 10/1.
The last three years P&D report never came before the 2nd day of the month.
I made a small list, but date is in European format (DD-MM-YYYY):
| Quarter | Date PD report |
| 2021 Q2 | 2/07/2021 |
| 2021 Q1 | 2/04/2021 |
| 2020 Q4 | 2/01/2021 |
| 2020 Q3 | 2/10/2020 |
| 2020 Q2 | 2/07/2020 |
| 2020 Q1 | 2/04/2020 |
| 2019 Q4 | 3/01/2020 |
| 2019 Q3 | 2/10/2019 |
| 2019 Q2 | 2/07/2019 |
| 2019 Q1 | 3/04/2019 |
| 2018 Q4 | 2/01/2019 |
| 2018 Q3 | 2/10/2018 |
| 2018 Q2 | 2/07/2018 |
| 2018 Q1 | 3/04/2018 |
Just saying, P&D is not what I'm worried about in the fight for 800. But the anticipation for P&D numbers can be more than enough to rally, so again: your caution is most likely valid.
TheTalkingMule
Distributed Energy Enthusiast
I can't post for about an hour. Me and Ken Griffin are in an epic stare down as he tries to get me to sell my 10/1 $800c's.
Just sold 10x 815lcc for friday @2.65. Wort case i roll them 1 week to 840 or so & then part with my 700$ underlying call expiring next friday 
Have another 10x @4 already open if we do spike again.. if they don't fill .. well.. for me.. means i can keep the other 2.6k for 2.5 days of hodling
Have another 10x @4 already open if we do spike again.. if they don't fill .. well.. for me.. means i can keep the other 2.6k for 2.5 days of hodling
I've rolled the 830/860 call side of some of my IC's down to 820/850 to match the others. Also sold another 50 x 820/850 BCS at around $1.50 and am about done selling for the week. It's looking like $800 should be defended hard but I prefer to go to the next major call wall for some extra cushion.
corduroy
Active Member
Rolled my BPS 10/1 650/650s opened 9 days ago up to 10/1 700/600s for $1. I like this strategy of going conservative 8-10 days out then squeezing out more profits as the end of the week becomes clearer.
TheTalkingMule
Distributed Energy Enthusiast
I'm digging this concept. All things being equal, how much would you say the total credit differs this strategy vs just going directly to the more aggressive strikes 8 to 10 days out?
In summary:
- 9/28: BTC 01Oct2021C760 @$30.50
- 9/29: STO 18Mar2022C900 @$55.00 (44% fewer contracts open)
- ~$1k credit
- will probably avoid short-term open covered calls until we see the effect of Austin/Berlin, etc. -- perhaps when SP reaches $900
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corduroy
Active Member
I haven't run that calculation but I would assume the more aggressive strikes would be a higher total credit. What this strategy is about for me is risk management. Keeping the risk about the same (around 10% probability of ITM) as time goes on by rolling up. This is allowing me to get "close enough" to the total credits of a higher strike, while sleeping better on the weekends.
I rolled up my 650/-700p spreads to 675/-725p for like a buck.
I shouldn't be so blase or ignore about this, but I don't really understand the differences:
SMA/Fed call
Special memorandum account/Federal call. When the margin equity in the account exceeds the federal "Reg T" requirement of 50%, the amount in excess of the requirement is referred to as the SMA. If the Reg T initial requirement is not met, a Fed call is issued against the account. Generally, Fed calls must be met within 5 business days, but Fidelity may cover the call at any time.
Update frequency: Intraday
I know that most of the time, the Fed call is more generous than the House call. In fact most of the time the House call is the most restrictive.
Exchange surplus/call
An Exchange surplus (also known as NYSE surplus) is the amount of margin equity in the account above the NYSE minimum requirement (currently 25%). If the margin equity in the account falls below 25%, this value will be reflected as an Exchange call. Generally, exchange calls must be met within 48 hours, but Fidelity may cover the call at any time.
Update frequency: Real-Time
This is the one that I didn't ever expect to see.
To be clear I still haven't received a message from Fidelity about any of these calls. I've just got negative balances that I've started managing today - I don't like negative margin balances
TheTalkingMule
Distributed Energy Enthusiast
Exactly. If you can get anywhere close to the same total credit, the 2x number of peaceful sleeping hours more than makes up for it. And then there's obviously all that loss avoidance from the outlier weeks with a deeper drop than expected. All you have to do then.....is nothing!
TheTalkingMule
Distributed Energy Enthusiast
Have not blinked. Gonna go take a shower while still staring Ken directly in the eye. With any luck he won't get indicted before I've finished shaving.
Citadel Securities Faces New Pressure Over GameStop Frenzy
Billionaire Ken Griffin’s electronic trading firm is under fire again over its role in the January trading frenzy in shares of GameStop after new information surfaced in a lawsuit.
www.wsj.com
Early this morning (30 to 60 minutes into trading?) I had the opportunity to close my BPS for ~45% gains and I strongly considering doing so (shares roughly $5 in the green?). In fact I'd say that most of the time that is exactly what I'd do (think close --> do close). I did close some to make the negative margin balances a lot less negative
In this case I decided I'm far enough OTM (730 strike) and I plan to close tomorrow either way to prepare to open on Friday that I decided to let 'em run. The reason for that choice is that I think time decay is strongly in my favor this close to expiration, especially $40+ OTM and I'll have a significantly more profitable close opportunity tomorrow.
In this case I decided I'm far enough OTM (730 strike) and I plan to close tomorrow either way to prepare to open on Friday that I decided to let 'em run. The reason for that choice is that I think time decay is strongly in my favor this close to expiration, especially $40+ OTM and I'll have a significantly more profitable close opportunity tomorrow.
Took the "L" on my 10x 780/830 bear call spreads at a $6.5k loss. More than made up for by other gains this week, and I have zero faith in being able to close them at a better price between now and Friday, even though it's certainly possible. Well worth the peace of mind, and I would rather not get caught up in having to roll them in front of a potential freight train of a bull run.
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