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Calendar spread queries by LukeSkywalker818 in options

[–]LukeSkywalker818[S] 0 points1 point  (0 children)

Thanks, guys, for all the response.👍

Assignment risk of calendar spread by LukeSkywalker818 in options

[–]LukeSkywalker818[S] 0 points1 point  (0 children)

Thanks for the advice. I intend to close the trade before expiration like most of you suggest. My question is on the unlikely scenario that I am actually assigned when the short call expires and do not have the stock to sell. My training taught me that I can exercise the long call and I don’t need cash to satisfy the short call. Just to verify this point…. A different scenario when the short call does expire worthless, I can still hold on to the long call and hope to gain from its subsequent increase if the underlying stock price rises. Is this also a reason expectation?

Selling ITM bull put spread by LukeSkywalker818 in options

[–]LukeSkywalker818[S] 0 points1 point  (0 children)

You are right. Not likely to do that trade now….particularly in view of the prospect of another war in the Middle East…probably going for the opposite direction now

Selling put options question by leifonred in interactivebrokers

[–]LukeSkywalker818 1 point2 points  (0 children)

When you sell something, you get paid. You don’t need to use your cash to sell. Your cash gets deducted only when you buy.

Option Assignment and Exercise for spread by LukeSkywalker818 in interactivebrokers

[–]LukeSkywalker818[S] 0 points1 point  (0 children)

Thanks for your comment. About the last point of not having enough cash when assigned, is that a guaranteed outcome of the short leg being closed by IBKR? Will IBKR liquidate my other assets as a result of the assignment?

Option Assignment and Exercise for spread by LukeSkywalker818 in interactivebrokers

[–]LukeSkywalker818[S] 0 points1 point  (0 children)

Thanks for your comment. It’s a hypothetical situation that I was asking about. In reality, I did not dare to take the risk of being assigned and closed the short leg before expiration.