can the block trade desk respond so quickly? I never called them so curious to know how it works . When I call customer service, Sometimes it takes a while for someone to pick up. So I guess it is not the normal phone number to call?
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trading
- Thread starter Boomer19
- Start date
can the block trade desk respond so quickly? I never called them so curious to know how it works . When I call customer service, Sometimes it takes a while for someone to pick up. So I guess it is not the normal phone number to call?
Sold the final 4/7th for ~2x return before the drop to $650. IBKR wouldn't let me hold onto them past 3:45PM, and it felt it too bothersome to roll them over to next week, so I just bought stock.
That was crazy. Doorbell rang with roofer needing to ask questions at 12.52.
Ha. I sold nearly all my calls at 12.45- 12.49, locking in some smallish gains, as stock (by recall in the 640's) then literally as I sell the last one..the stock starts shooting upwards.
i totally panicked. ha.
Ha. I sold nearly all my calls at 12.45- 12.49, locking in some smallish gains, as stock (by recall in the 640's) then literally as I sell the last one..the stock starts shooting upwards.
i totally panicked. ha.
Question about options ending in the money
I had 670 strikes that were not in the money till that last crazy minute. Now, they ended in the money although Fidelity website still shows them to be worth pennies. What happens now? Will fidelity exercise these and close them out? I don’t have enough cash to cover, but have sufficient overall assets. This is not a margin account being an IRA.
I had 670 strikes that were not in the money till that last crazy minute. Now, they ended in the money although Fidelity website still shows them to be worth pennies. What happens now? Will fidelity exercise these and close them out? I don’t have enough cash to cover, but have sufficient overall assets. This is not a margin account being an IRA.
I believe even without margin they would put the shares in your account and you would owe a lot of cash on Monday. So you have some risk that the price could drop
a lot Monday premarket before you can sell your shares to pay off your balance.
Huge congrats Frank! Well deserved profit
I sold all my 20% Jan21 $500 call and rolled into shares and Jun22 $600 call.
About 50% gain overall since the announcement, which is the same as my Jun22 leap.
Now I don’t know why I did this short term play and stared at the SP everyday.
overall I am 50% shares and 50% leaps now.
Shall I covert leaps to shares? I don’t know why I increased my leap position since we all know IV will crush next week. Am I stupid or something?
About 50% gain overall since the announcement, which is the same as my Jun22 leap.
Now I don’t know why I did this short term play and stared at the SP everyday.
overall I am 50% shares and 50% leaps now.
Shall I covert leaps to shares? I don’t know why I increased my leap position since we all know IV will crush next week. Am I stupid or something?
Wow nice work Frank. I was thinking about your plans while the stock was taking a nose dive. Pretty amazing how they can cause a huge swing like that.
I was not impacted but I can imagine retail got hosed on that move down to 630. I actually took advantage of the dip when I saw the imbalance and the indicative price for the crossing. What a day!
Next week should be interesting too.
I don’t know if IV will get crushed next week. I expect IV to at least remain at same levels for the next two weeks. What we saw today was not the end.
It appears your view is that as of now there's a buy side imbalance. Can you share the reasoning?
Did you take into account current holdings of TSLA in funds like VOO?
@FrankSG Given where we are, is there any change in your model's prediction for the peak being ahead (in the next 1-2 weeks) than already passing?
What's your take on the imbalance as of now? Do you see indexers needing significant number of shares still, to reach the weighting?
What's your view on price action in the coming week?
I was closely following @FrankSG dealing with IBKR as I was in a very similar position. I spent around 3 hours on hold waiting to talk to someone at IB yesterday without getting a satisfactory response. I had a few Dec18 calls (550,600,650,700) in cash or lower margin accounts that ended up getting closed out automatically. This usually happens at 3.45pm but thankfully they delayed till nearly 3.55pm, which allowed the stock price to recover. I had to sell a couple of others in the last minute with some sales not going through, so I now have 300 extra shares at $650. I'll sell most of these if there's a rise next week to remove the margin or else sell aggressive covered calls if there's a dip.
Depending on the accounts and options I managed a return of between 3.5 to 6.5X on these short term options so I am generally happy with the outcome. A lot less than the 10X some were a week ago but it's all part of the learning experience. I also still have some Dec24 options to close out this week coming, so hopefully we get an early rise before any dip.
Depending on the accounts and options I managed a return of between 3.5 to 6.5X on these short term options so I am generally happy with the outcome. A lot less than the 10X some were a week ago but it's all part of the learning experience. I also still have some Dec24 options to close out this week coming, so hopefully we get an early rise before any dip.
It is based on the closing cross imbalance and the potential for benchmark funds to provide support. The other aspect is options trading. So much of Tesla price action seems to revolve around options. And this one was a big one in terms of premiums. They literally just killed thousands of option holders with that pre closing cross drop. It also seemed to have happened on not so great volume,
We will see what happens next week. I could be completely wrong and the stock could tank 10-20%.
Well, that is exactly what happened. Now I have shiny new shares in my account with a huge negative balance. So let’s hope Monday open is not a crash
Now the problem is that I am already feeling attached to these new shares and trying to figure out ways to keep them.
When is the wedding? (Kidding, wedding for you and your shares
) So true, I bought some shares using short term fall profit in the last hour and felt like a steal. I never sold any shares except the Covid crash when I converted some shares to calls.
I have this exact same problem except its upcoming in January -- I have JAN 15 570's I would like to keep. My thought was to take margin on them and then sell covered calls to pay that margin down over time. Besides the possibility they get called away, paying interest on the loan, and or TSLA dropping significantly where I get margin called (and have to force sell some shares) can someone tell me why this a stupid idea?
Oh and one thing I forgot to add. ARK did not sell any TSLA.
It is not a stupid idea- I am planning to do something similar in my investment account. In my case, it is because they are all short term gains, and my tax bracket with Federal and State combined would be close to 50%. If I wait till long term, taxes would be 33%, but it is possible TSLA stock gives up some of its current gains reducing the profits. The calls are Jan 2022 252's which were bought pre-split. They are so deep ITM that there is almost no time value left. I was thinking of purchasing 60% of them on margin and then selling covered calls against them to reduce margin debit. I can sell the remaining after they become long term to pay-off the remaining margin. The CCs I am thinking would be deep OTM to minimize risk of being called away.
Can anyone tell us if there is a fatal flaw in this plan?
Those of you familiar with this type of situation - any idea how long Fidelity will give me to liquidate these and pay off the negative balance? I realize this is broker specific as well as account value dependent, but trying to get a ballpark estimate. The negative balance is about 10% the value of that particular account - which is mostly all TSLA.
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