Wiki Selling TSLA Options - Be the House

[Zhelko Dimic]

4 million shares less available today for shorting, as compared to yesterday (24.x the day before yesterday; 23.5M yesterday; 19.5M today)
It could mean many things, but one of the possibilities is that these are reserved to be used today...

 

[corduroy]

I have 20 RIVN BPS that they are so ITM that is not even funny... I am still hopping that it turns around by Jun. Everytime I decide to trade something other than Tesla I get screwed.

Yea, I have some NVDA -200p's expiring today that are giving me lots of heartburn. I should stick to TSLA as well.

 

[Max Plaid]

Yea, I have some NVDA -200p's expiring today that are giving me lots of heartburn. I should stick to TSLA as well.

$GOOGL

 

[samppa]

$GOOGL

yeah I've been wondering what's pushing down GOOGL so hard..

 

[Max Plaid]

yeah I've been wondering what's pushing down GOOGL so hard..

I read that the recent $SNAP results showed less ad revenue and I think the assumption is that GOOGL will be hit too, but I think Google's business and diversity is far wider than SNAP and those folks shorting now ahead of earnings newt week could be in for a shock, at least I hope so...

I happen to be holding 5x 5/20 -p2700's, will use weekly call premiums from selling against Jan 24 c3000 LEAPS to roll them down, $30-$50 each week. Hopefully the SP rises a bit to expire them at some point... I'll be damned if I use existing cash to buy those out - got burned every time doing that, patience is key, Google is one of the most stable and profitable companies out there, no debt, piles of cash and a dominant market position, so I think it's all a game right now. Split coming up too...

 

[bkp_duke]

Gotta vent . . .

I had a 990/1000 BPS that I was playing with. Was fine if it went negative, no big loss on this one.

Given the support seen today, I wanted to ride it out until the end of trading, see if I could book the entire profit.

Well, 10 mins ago Fidelity closed the position for me, at exactly 1h till market close. I wound up losing $500 on the trade overall, whatever. But if the a-holes would have waited literally 10 mins to do this, I would have made $2500.

They literally closed it right before the end of market pop upwards that we are seeing here going into close.


GRRRRRRRRRR!!!!!!!!!


EDIT - and of course they got their commission. Which I would have denied them going into expiration.

Rigged game . . . rigged game.

 

[mongo]

Gotta vent . . .

I had a 990/1000 BPS that I was playing with. Was fine if it went negative, no big loss on this one.

Given the support seen today, I wanted to ride it out until the end of trading, see if I could book the entire profit.

Well, 10 mins ago Fidelity closed the position for me, at exactly 1h till market close. I wound up losing $500 on the trade overall, whatever. But if the a-holes would have waited literally 10 mins to do this, I would have made $2500.

They literally closed it right before the end of market pop upwards that we are seeing here going into close.


GRRRRRRRRRR!!!!!!!!!


EDIT - and of course they got their commission. Which I would have denied them going into expiration.

Rigged game . . . rigged game.

Did they close the whole position, or just the short leg?

 

[bkp_duke]

Did they close the whole position, or just the short leg?

Whole position.

I know, they have that "right" to do that near close of expiration. It's just frustrating how their timing sucked.

 

[corduroy]

Gotta vent . . .

I had a 990/1000 BPS that I was playing with. Was fine if it went negative, no big loss on this one.

Given the support seen today, I wanted to ride it out until the end of trading, see if I could book the entire profit.

Well, 10 mins ago Fidelity closed the position for me, at exactly 1h till market close. I wound up losing $500 on the trade overall, whatever. But if the a-holes would have waited literally 10 mins to do this, I would have made $2500.

They literally closed it right before the end of market pop upwards that we are seeing here going into close.


GRRRRRRRRRR!!!!!!!!!


EDIT - and of course they got their commission. Which I would have denied them going into expiration.

Rigged game . . . rigged game.

They closed it when the short leg was OTM??

 

[bkp_duke]

They closed it when the short leg was OTM??

Yep. $5 away from the money, but still OTM.

 

[Oil4AsphaultOnly]

Whole position.

I know, they have that "right" to do that near close of expiration. It's just frustrating how their timing sucked.

Hmmm. By "right", do you mean that you were in a margin call situation? In which case, at that point in time, you had no margin left and the stock could've potentially gone lower right?

 

[bkp_duke]

Hmmm. By "right", do you mean that you were in a margin call situation? In which case, at that point in time, you had no margin left and the stock could've potentially gone lower right?

No, cash backed, no margin.

 

[bkp_duke]

In unrelated news, I sold CC's on 700 shares for 4/22 1005 Exp. Which I was hoping to wheel and sell puts next week.

Closing price of 1005.05 . . . . wowsers.

 

[Yoona]

These last 4 Fridays are even more interesting. (Today is a "Friday" for reporting purposes since tomorrow is holiday).

The difference between Fri Close and Fri Open are only -1.07% to +0.32%. It's too much coincidence for a $1000 volatile stock to deviate less than 2% after whole day of trading. Repeat 4 consecutive weeks.

I interpret that to mean: whatever is the Fri Open is pretty much going to be almost the Fri Close. Translation: the Fri Open is MM's suggested closing price and they will work to protect it?

View attachment 793741

magnified look:
View attachment 793742

Data:
View attachment 793748

Time to brush up on Iron Butterfly and Short Straddle...

1) 5 weeks in a row... the Fri Close is <2% from the Fri Open. Today is 0.97%. Almost predictable...

2) after all the earnings/netflix/fed drama, Fri Close is only ~$16 from the Mon Open. That's <2% OTM.

3) Fri Close 1005.05 is nearly same as Tue Open 1005.06.

 

[Oil4AsphaultOnly]

No, cash backed, no margin.

But in order to sell spreads, you have to have a margin account. Are you saying that you had enough cash to cover the short puts? If that's true, then Fidelity violated the terms.

The only "right" they have for forcing a close of a position is if you're out of margin. The early exercise of short option positions is simply that, an early exercise. For a BPS, you would've been assigned new shares for closing out the short puts, but that doesn't sound like what you described happening.

 

[WattsHappening]

But in order to sell spreads, you have to have a margin account. Are you saying that you had enough cash to cover the short puts? If that's true, then Fidelity violated the terms.

The only "right" they have for forcing a close of a position is if you're out of margin. The early exercise of short option positions is simply that, an early exercise. For a BPS, you would've been assigned new shares for closing out the short puts, but that doesn't sound like what you described happening.

I don't think you need a margin account to sell spreads. I am able to do so in my IRA account, which does not allow margin. But I do need full cash coverage.

Your other point makes sense to me. I'm shocked to find out (queue Casablanca movie) Fidelity can close out the trade when you are fully cash covered. Don't understand that.

 

[bkp_duke]

But in order to sell spreads, you have to have a margin account. Are you saying that you had enough cash to cover the short puts? If that's true, then Fidelity violated the terms.

The only "right" they have for forcing a close of a position is if you're out of margin. The early exercise of short option positions is simply that, an early exercise. For a BPS, you would've been assigned new shares for closing out the short puts, but that doesn't sound like what you described happening.

Ah, now I get what you are saying. Correct, it was in margin account, and no there was not enough cash to back 30 puts (I wish!).

What I found interesting, and what others have mentioned in the past, is that this happened EXACTLY 1 hour (to the second) before close.

I'm not that upset, just a learning experience. I could have closed the trade for a profit earlier in the day on the run up, and on several subsequent mini-spikes we saw on the general down-trend.

 

[AquaY]

Ah, now I get what you are saying. Correct, it was in margin account, and no there was not enough cash to back 30 puts (I wish!).

What I found interesting, and what others have mentioned in the past, is that this happened EXACTLY 1 hour (to the second) before close.

I'm not that upset, just a learning experience. I could have closed the trade for a profit earlier in the day on the run up, and on several subsequent mini-spikes we saw on the general down-trend.

Remember something. You can be assigned up to an 1 1/2 hours AFTER the close.

 

[bkp_duke]

Remember something. You can be assigned up to an 1 1/2 hours AFTER the close.

Was well aware of that, it was the timing of this one (on the hour, by the second) that I found suspicious.

 

[AquaY]

Was well aware of that, it was the timing of this one (on the hour, by the second) that I found suspicious.

I understand. I was just saying that because if people forget that or don't know it they can think they are safe at the close and the next day be informed they've been wiped out