Scaring people away from selling naked calls? I hope so. You are referencing a spread above, and he has been talking about selling naked calls. No spread in his trade. Two different animals as you are aware.

But yeah, for 3-5 contracts you're going to wake up short shares. But you'll eventually need to buy those shares. Or they'll get bought for you. So he'd eventually, and probably sooner rather than later given what SPY is, not be short anything. And he wants to stay short several months from what he posted.

But you're right, he can do as he pleases. But it is one of the strangest ways I've ever seen to go short, given how relatively brief his short would be. A matter of weeks probably rather than months.

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Posted by Big Saint

Houston

Member since May 2009

1454 posts

Posted on 7/12/16 at 9:42 pm to Iowa Golfer

Yes my trade was a spread but the long portion wasn't ITM so was never excersized by me or automatically. The short position was early assigned and i got lucky that it dropped the next morning so I could close out the resulting short position. I bit off more than I could chew so had to close out.

quote:
But you'll eventually need to buy those shares. Or they'll get bought for you. So he'd eventually, and probably sooner rather than later given what SPY is, not be short anything. And he wants to stay short several months from what he posted

I never claimed to be an expert but I'm definitely not getting why he couldn't stay short if that's what he wanted to do. Maybe you could explain. Like I stated I only bought mine back because I was over exposed. Otherwise I would have held the short shares like he claims he wants to do.

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