Remember to compare the loss from rolling to the recapture of unrealized capital gains. Quite often the “loss“ is less than the ucg.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
I took advantage of the dip & closed out my 10 cc's 1200 for 11-26.
This played out quite well.
100x 1120/1220 are now 50x 860/960 1200/1300 IC 12/03... total cost to roll 0.25 dr x 100 contracts.
Also entered some new BPS on this weakness ... 50x 860/910 11/26 and 100x 800/850 12/03... will pair up the 12/3 with some BCS on the next up cycle.
Reposting - as I fat fingered the posted this in the Numerology thread
Well, I fat fingered a trade and had to eat some losses - feel so stupid about it now.
I had already opened BPSs in my individual brokerage yesterday - all of which are deeply red - the highest short put is at 1045
. This morning when SP was dropping I thought, well good - time to add positions in the IRA. So I placed limit order for 50x BPS -p1050/+p950 on the phone and went out for an errand - unfortunately Fidelity defaults to individual brokerage on the phone app which I didn't change while placing the order. When I come back, the order had gone through in the indv account and the stock has dropped by almost $30. My margin in the account was down to $69 - not kidding, that was the actual number for available margin - so I closed this position out in a rush at market order taking ~ 40K in losses. Didn't want to risk a margin call if the SP drops further, which it did!
Feeling pretty stupid and annoyed - I was recovering nicely from the Tuesday couple of weeks back, now to add these losses in. Worse, I am very careful about not opening the same strikes in Indv and IRA accounts to avoid any wash sale issues. Now, I have the same positions already opened in the IRA yesterday - if these recover and turn a profit, it is a definite wash sale in the indv account and will need to report accordingly.
Add one more to the learning experiences
Well, I fat fingered a trade and had to eat some losses - feel so stupid about it now.
I had already opened BPSs in my individual brokerage yesterday - all of which are deeply red - the highest short put is at 1045
. This morning when SP was dropping I thought, well good - time to add positions in the IRA. So I placed limit order for 50x BPS -p1050/+p950 on the phone and went out for an errand - unfortunately Fidelity defaults to individual brokerage on the phone app which I didn't change while placing the order. When I come back, the order had gone through in the indv account and the stock has dropped by almost $30. My margin in the account was down to $69 - not kidding, that was the actual number for available margin - so I closed this position out in a rush at market order taking ~ 40K in losses. Didn't want to risk a margin call if the SP drops further, which it did!Feeling pretty stupid and annoyed - I was recovering nicely from the Tuesday couple of weeks back, now to add these losses in. Worse, I am very careful about not opening the same strikes in Indv and IRA accounts to avoid any wash sale issues. Now, I have the same positions already opened in the IRA yesterday - if these recover and turn a profit, it is a definite wash sale in the indv account and will need to report accordingly.
Add one more to the learning experiences
TheTalkingMule
Distributed Energy Enthusiast
Rolled some of my 11/26 $1105c's to 1/24 $1300c yesterday and others to 12/10 $1170c this morning. Like a sissy. Looks like we're closing at $1099 Friday just as I expected when I sold the damn CC's in the first place.
Lesson 386: Don't flinch on Tuesday morning in a holiday week!
Lesson 386: Don't flinch on Tuesday morning in a holiday week!
NOT-ADVICEReposting - as I fat fingered the posted this in the Numerology thread
Well, I fat fingered a trade and had to eat some losses - feel so stupid about it now.
I had already opened BPSs in my individual brokerage yesterday - all of which are deeply red - the highest short put is at 1045
Feeling pretty stupid and annoyed - I was recovering nicely from the Tuesday couple of weeks back, now to add these losses in. Worse, I am very careful about not opening the same strikes in Indv and IRA accounts to avoid any wash sale issues. Now, I have the same positions already opened in the IRA yesterday - if these recover and turn a profit, it is a definite wash sale in the indv account and will need to report accordingly.
Add one more to the learning experiences
Something I learned recently is that margin calls aren't necessarily all that big of a thing. In one account I've got nearly as much cash as I have margin available. As a result I have been in margin call territory against positions that are fully cash secured (seriously). If I'd flagged the trades as cash instead of margin (not the default) then that wouldn't have happened.
However in the margin call details (and this is clearly all automated) there is the margin call along with information about the status. It tells me the date the margin call was isssued, the date by which cash or some other activity is needed to resolve the margin call, and the amount of that cash to resolve the margin call.
When these situations have arisen for me, the margin call shows up and is also immediately (or the next day) flagged as MET as I had more than enough cash already on deposit to cover the margin call. As in so much more that the underlying position could have been assigned and paid for by the cash on hand with no margin loan needed, but I didn't need that much.
I've intentionally pushed myself into negative margin territory to see what this would look like. That's really not advice but with the large cash balance I had it was quite informative to see what margin calls look like. I learned that as I'm opening positions (such as short puts), those positions are counted against margin balance first and then the on hand cash. Were I to be assigned on those short puts, then I'd be spending the cash first, with any remainder showing up as a margin loan.
I also learned that Fidelity will extend me a stupidly large amount of credit (margin) should I want to take advantage of it. Like 5x the level that I consider aggressive already. I'm not even a little bit tempted to take them up on that offer!
Knightshade
Well-Known Member
The dip to the 1060s scared me enough on a short/low volume week that when it bounced a bit to ~1080 I rolled my +980/-1080 BPSes to +950/-1050 for 12/3 at about a $2.50/sh credit....
Also have some -1220 calls for next Friday out there- even with the dip only 40% green so gonna wait those out some more.
Also have some -1220 calls for next Friday out there- even with the dip only 40% green so gonna wait those out some more.
margin
the funds available for trading is decreasing logarithmically it seems
support @ 20 day MA at 1070 .. let's see
I kinda feel like a jerk posting this... but it takes all types!
Yesterday on the pop I closed my $995 12/03 Puts for $7 each (sold at $18 on Friday) right at 60% percent also closed out my ITM $1200's I had been rolling for fun....
So it is with great displeasure I sold $995's a bit ago for $30 each! (12/03 again) I thought I was going to not have anything open over the holiday but here I am.
I see $1000 as support like a bunch of others and now am very comfortable rolling ITM puts if needed.
Was thinking of opening the $1200's as well - put in a order for $150 each to start that again..... (I mean we were just there literally yesterday)
Yesterday on the pop I closed my $995 12/03 Puts for $7 each (sold at $18 on Friday) right at 60% percent also closed out my ITM $1200's I had been rolling for fun....
So it is with great displeasure I sold $995's a bit ago for $30 each! (12/03 again) I thought I was going to not have anything open over the holiday but here I am.
I see $1000 as support like a bunch of others and now am very comfortable rolling ITM puts if needed.
Was thinking of opening the $1200's as well - put in a order for $150 each to start that again..... (I mean we were just there literally yesterday)
mickificki
Member
I closed out ALL my short calls today in the dip. Not enough in the dip, TBH, but that's timing the market for you, I have no skill at all in that - and after the bump up to $1180 this morning, who could have imagined a $100 drop
Anyway, I'm all in cash, ITM LEAPS and ATM puts now, bring on the split, P@D, ER, FSD, GF4, GF5!! BAF!!
Got 2 haircuts today, one on my head and one on my woeful strung out 052022C950 (been rolling for months since <$800). Sick of waiting and missing earlier dips, and couldn't resist the 20% pullback today -- paid >$100k over what I could have purged for last week (when $180 limit order missed by $1; paid $261 today). Now all my Roth shares are uncovered, and I'm poised for a surge with everyone else.
InTheShadows
Active Member
Rolled a 1005/-1060 BPS for our son while he was at school today to next week 975/-1030 for .72. He won’t be happy because there is no pay day this week. He was looking forward to having off tomorrow and Friday to trade. Hopefully he will be happy working with one of my accounts instead.
I have found that a spread that small must be dealt with when the short leg is near the money for max strike improvement.
I have found that a spread that small must be dealt with when the short leg is near the money for max strike improvement.
Annnnnd I'm out - closed at $16 just now for about an hour of holding - $14 premium per contract!
mickificki
Member
What a day, my daily theta went from 5k to 30k back to ~7k.
No, I don't track portfolio value as much as my cash, theta, and deltas.
No, I don't track portfolio value as much as my cash, theta, and deltas.
... Yup.
+100k or so in the early morning, -350k or so at the bottom, -150k currently ..
leaned into the drop to early & fear-rolled half of some positions to next week.
bkp_duke
Well-Known Member
If this worked so well today, who's to say we won't see more of it tomorrow and Friday, as long as volume stays low.
Buckle up time?
Loving how the new IC is looking.
- Closed the 50x 11/26 860/910 at 75%.
- Moved the 50x 12/3 800/850 BPS to 50x 12/3 800/900 instead (widened for a credit). Paired that with 50x 1350/1450 BCS to form the IC. Total credit at 5.56 on these.
- Also entered 50x 795/845 1400/1450 IC at 1.91 cr.
Will need to manage DITM 12/3 CCs next week. Either flip rolling those to BPS or naked puts or continuing the trek of rolling for minor strike improvements.
Closing below the 20MA is bearish. I was half expecting the rally to get us back over that line. We shall see what rest of this short week brings, but my guess would be we chop around between 1050 - 1150.
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