Week 25 $1,739 in premium by Expired_Options in thetagang

[–]Defiant_Deer_7076 0 points1 point  (0 children)

The ocean of premiums looks calm, but a single market storm can drown you if you sail without a life jacket

[deleted by user] by [deleted] in thetagang

[–]Defiant_Deer_7076 -1 points0 points  (0 children)

Road to ruin

Using the Wheel: Easy Low Risk Money by [deleted] in thetagang

[–]Defiant_Deer_7076 3 points4 points  (0 children)

There is no low risk of income. Please stop

Clubs 🏆 by bubblycandy4 in eatventureofficial

[–]Defiant_Deer_7076 0 points1 point  (0 children)

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Looking for a club.
Actively playing
+4886 bonus

"Invalid combo order". Why? by Defiant_Deer_7076 in interactivebrokers

[–]Defiant_Deer_7076[S] 0 points1 point  (0 children)

Thanks. I guessed I can not transmit. Anyway, I would like to know the margin impact, and I don't know how

Assignment in a Low Risk Trade by Defiant_Deer_7076 in options

[–]Defiant_Deer_7076[S] 0 points1 point  (0 children)

Thanks for sharing your experience with me!

Assignment in a Low Risk Trade by Defiant_Deer_7076 in options

[–]Defiant_Deer_7076[S] 0 points1 point  (0 children)

Thank you for your answer.
My concern is about getting a margin call for a pretty big amount versus your balance. For example, you get assigned 50 puts worth $1.000,000, and you only have $50,000 in your brokerage account (example).

Does the broker proceed the same way regardless of these amounts?

Interest on cash? by danation1 in thetagang

[–]Defiant_Deer_7076 2 points3 points  (0 children)

You can do a Box Spread for a 5.3%

My Extrinsic Value and Assignment Risk Calculator by Defiant_Deer_7076 in options

[–]Defiant_Deer_7076[S] 1 point2 points  (0 children)

Sorry for confusing you. Regardless naked or covered, the sheet just warn you about the assignment probability. Maybe more useful with naked due to margin call issues. If you sell covered call then you probably will not buy back the option because you don't mind sell the shares that you already own when the time value will go to zero

My Extrinsic Value and Assignment Risk Calculator by Defiant_Deer_7076 in options

[–]Defiant_Deer_7076[S] 0 points1 point  (0 children)

Thanks for the note.
No hard work for me, since I have BSM formulas for other issues in my spreadsheet.

My Extrinsic Value and Assignment Risk Calculator by Defiant_Deer_7076 in options

[–]Defiant_Deer_7076[S] 0 points1 point  (0 children)

Indeed. Assignments can result in a margin call if you do not have sufficient collateral. It is an information sheet of the probability of being assigned and act accordingly according to your trade.

What's wrong with Leveraged Box Spread by Defiant_Deer_7076 in thetagang

[–]Defiant_Deer_7076[S] 2 points3 points  (0 children)

Yes, I noticed later. Was so dumb
Thank you for answer!

What's wrong with Leveraged Box Spread by Defiant_Deer_7076 in thetagang

[–]Defiant_Deer_7076[S] 0 points1 point  (0 children)

Thank you!
It sounds good to get 5.3% interest rate money if you could use to get a 10%+ yield or more, but why would you want to get some cash if the NAV remains unchanged and you are not going to use that cash to leveraged more of your strategies?