Thanks for the ideas of how to fix the CSP. I'm not comfortable actioning either, mostly because some need additional capital or margin. I have to sort through what is most feasible.
Now about BPS ... I promise, I'll never write BPS again !!!! This is what happens when you roll instead of taking a much much smaller loss. You are stuck deciding how much a bigger loss to take.
If I let this exercise today at the market value of 183,600, my broker will buy the shares, I immediately sell them and also sell the long put for market, the actual dollar loss will be:
900 shares at 383.33 --> 344,997 minus 900 shares at 182.50 --> 183,600
344,997-183,600=161,397
sold shares leave me with a bill of -161,397 , less the sale proceeds of the long put, 125,865 , I have a cash loss of -35,532
I'm not happy having to take a loss either way. But I have been fortunate to be able to cover it by giving back some of what I earned this year, most of was earned after switching to B/W , CC , and CSP. It'd offset the gains from a tax perspective.
Why would I want to close this out today at using current values at -57,735? Am I missing a value in my calculation?
EDIT: I realize now that at actual time of assignment, the share difference in what I am assigned less the market value will be greater and while the long put will be worth more, it may be the same as buying back the position at that time, not the same as theoretical now.
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