re: Options Trading Thread

That late slide was kind of nasty. Hopefully you were able to roll down in strike and out in expiration. Some softness this morning too.

Seeing that my AMAT 2x4 jade lizard would have swished the net makes me even angrier about that property break-in.

PANW reports after the bell today. While IV is up (49.6 IV, 71% IV percentile), I might play the 8/18 naked puts around the 15 delta (195 strike right now). But many are suspicious about why they’re reporting after the bell on a Friday - something they’ve never done before. IMO, the “safe” play here is to just take advantage of the increased IV and avoid the earnings/event risk.

Question: How do you know if you will be assigned, other than looking at your account and seeing if the number has changed? For example -1 put to +100

As mentioned on TSLA I am ITM on short put w/ expiration today so only see one of two options: roll to better strike/exp. or it takes assignment but the latter I read there is no guarantee it gets assigned so could just expire for the max loss on the spread. In the same boat with my SE play earlier in the week but already rolled it out to longer date but no assignment even though deep ITM

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How do you know if you will be assigned, other than looking at your account and seeing if the number has changed? For example -1 put to +100

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Typically, if it’s .01 in the money at expiration, you’ll automatically be assigned by the brokerage firm and will see the stock in your account on Saturday. But I once had some AAPL short puts and the stock closed .15 in the money… but I wasn’t assigned. Though in AH trading, AAPL went up about a dollar. That was very unusual and I haven’t had it happen since.

A short put (or call) that’s deep in the money before expiration could be assigned at any time prior to expiration. I’ve not seen that there’s any definite amount or percentage that determines when, although some savvy traders do dividend plays around option assignments. I’ve only scanned the topic and I’m not sure how their strategy works.

Ahh didn’t realize it would occur automatically after close if ITM. I searched the web but couldn’t find a direct answer therefore decided to roll out a few weeks to give myself some time and destress as did not want the options to expire and take max loss. Roll out wasnt great but hopefully can get out by 1 Sep

I'm thinking about Zoom, but I really really don't want to own that stock. I'm on DLTR and ADSK for this week

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also have some 0DTE for today on both sides

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Same here. I had SPX SPVs at 4375 and SCVs at 4410. Started getting some heartburn around 3PM when the S&P hit 4407.55. I feel like I worked for that score!

I actually caused my own grief today by accidentally buying and selling the same put at 4330 this morning which made me a few lots naked at 4335. At the time market was in 4360's which didn't make me feel comfortable so had to enter a few trades to right the trade. Ended up for the day on 4335 SPV and 4420 SCV. (hindsight I would have been fine with the naked puts)

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I actually caused my own grief today by accidentally buying and selling the same put at 4330 this morning which made me a few lots naked at 4335.

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I use the ToS app much of the time, depending on where I am and what I’m doing - my iPhone and iPad make great mobile trading devices. Did the weekend update have anything to do with what happened to you this morning?

Personally, I HATE this update! I don’t find it to be intuitive, better, necessary or user friendly. I’m having to go through extra steps to edit trades and adjust my strikes and pricing. This is the first issue that I’ve ever had with ToS, but I’m quite unhappy about what they’ve done to the app platforms.

No unfortunately I entered thru desktop TOS application and it was completely my mistake. First had a 4335/4330 SPV at +/- 10 contracts then when I saw market dropping I decided to take another SPV at 4330/4320 at +/- 5 contracts. So being novice I looked at my positions after and had +5 4320, +5 4330 and -10 4335 and not realizing that I actually made a trade against myself by technically washing half of my first lot. In my mind I was entering in 2 different legs...dumb! I could have just left it alone but in a panic sold off the 4320 for a bit of profit and bought back the other 5 4330's. Ended up closing that lot for a wash late morning and re-entered an entirely new trade.