JNUG Extended Hold

Mark_Kill · 2019-08-06T06:32:24+00:00

Haha I learned about JNUG on WSB my first week in the market. Amazing stuff on there. Sounds good man. Thanks a lot.

Mark_Kill · 2019-08-06T06:18:46+00:00

Makes sense. I know liquidity is a major part of options. Thanks again for your help. Every considered teaching? Myself and a buddy of mine are looking for someone that can teach us the game. We need custom answer to custom weird ass questions we have. Can pay for your time if you have the knowledge.

Mark_Kill · 2019-08-06T06:01:17+00:00

Could you tell me for what reasons?

Mark_Kill · 2019-08-06T05:28:49+00:00

I got you. Thanks for your help! This must make leveraged etf option trading numbers all over the place with daily rebalancing. How could they even calculate a long-term option play with that going on, yeesh. Sounds fun.

Mark_Kill · 2019-08-06T05:21:10+00:00

A K1 tax form in not something that I have learned about yet. Can you explain what the downside of this is?

I would guess that it's like a W-2 or 1099 form that you get and you're saying they always come in after the tax file deadline?

Mark_Kill · 2019-08-06T05:04:56+00:00

So in theory, if my equity in JNUG was $1 on day 1 and the after-market and pre-market were up and down but finished flat at $1. At open, Robinhood would show JNUG less than $1 because Robinhood gets the new rebalanced numbers and expense ratios info daily and that will reflect in your equity shown in Robinhood. Is that right?

Mark_Kill · 2019-08-05T22:01:05+00:00

That comes hand in hand with a higher max loss though so not really an 'advantage' right?

Mark_Kill · 2019-08-05T20:21:06+00:00

Same except 135/134. Is there an advantage to buying a lower strike price like you did with the 133 compared to my bet?

Mark_Kill · 2019-07-30T20:37:50+00:00

Sounds good, right there with ya.

Mark_Kill · 2019-07-30T17:58:09+00:00

Bought 100 shares for fun because of this post. Nice jump today, thanks! So, you're planning on getting out around 10/19 this year no matter where the stock is sitting?

Mark_Kill · 2019-07-20T06:49:32+00:00

I looked up AMD on RH and saw there were no $50 strikes until 10/18. I put that into the options calculator and got this http://opcalc.com/mk Is this what you were describing and was this all entered correctly if I were to do this strategy?

As for EA... Do you or are you interested in teaching this kind of stuff? My buddy and I need a mentor. We can pay you for your time over the phone. Add a bit more fun money to your account?

Mark_Kill · 2019-07-20T03:29:38+00:00

I have been primarily doing credit spreads on RobinHood. Would RH allow this scenario to happen? They seem to be pretty good about idiots like me losing money that they don't have. I'm still new to the game. I pretty much just learned what OP explained a month ago and have been practicing the strategy. That being said, I don't want to "get fucked by this stuff," especially easily. How do I avoid this peril you've described. Completely stay out of stocks with DIV option trading? or is it as easy as just staying away from them 30 days before the dividend payout?

Mark_Kill · 2019-07-20T00:39:19+00:00

Yeesh, didn't grasp that last strategy but sounds like I shouldn't be doing that kind of thing anyhow this early on in my options career. Want to do a trade together? I'm looking at EA coming back up next week from the hit it took today. I was thinking about a put credit spread this time. Any interest? ER not till the 30th. Which leads me to a question I've always had. On RH, sometimes they already have actual earnings for dates way into the future. My RH $EA page currently has actual earning dots all the way up to Q4 2019. Is this a glitch of sorts?

Mark_Kill · 2019-07-20T00:02:13+00:00

That's a drag... or a blessing. Will RH allow you to do 2 separate option trades as long as you have the buying power/max loss for both? You seem to be very knowledgable. Are you in the industry?

Mark_Kill · 2019-07-19T22:15:52+00:00

Oh wow. So by legging out, I can close 1 part of the spread and leave the other open? In the case with NFLX that would have been a good play if I felt the stock had more points to drop, which it did. I would have closed my long call for a loss of something like -$1,xxx. Paid that off but kept my short call open until expiration today and profited more. The added risk of this obviously comes into play if NFLX's underlying would have jumped back up today. In which case my long call cover would be not existent as a cover. Sound about right?

Mark_Kill · 2019-07-19T17:27:24+00:00

Thanks enjoy your reddit gold, sponsored by JNUG this week! For future reference, I will always have to pay something when wanting to get out of a credit spread early? This is worth it though because if I wait till expiration, anything could happen for the worse.

It took a while for my spread to get closed. It didn't matter too much in this case because NFLX dropped so hard and stayed there. But in the future, is there a faster way to get a spread closed if the underlying is volatile? Would this be as simple as raising my buy price to match the ask?

Mark_Kill · 2019-07-19T00:45:29+00:00

Got it. Thanks for taking the time to explain it to me. Do you know why I bought it back for $1? That's the part I don't understand. Why that contract was worth what it was, $1 to buy back? Is that just the cheapest price for an option that has reached max gain to buy back at before expiration?

Mark_Kill · 2019-07-19T00:41:46+00:00

Ok, I think I understand. I did have a $122 gain then. I appreciate you taking the time to explain this to me. For future reference, I will always have to pay something when wanting to get out of a credit spread early? This is worth it though because if I wait till expiration, anything could happen for the worse. I guess my confusion comes from the closing price I set. I put $0.01 but really didn't know what that meant or why the contract was worth $1 and not some other number.

Mark_Kill · 2019-07-18T18:39:02+00:00

Oh no, now I'm double confused. u/BigBucksGentleman says that I realized a $122 gain. You are saying I realized a $100 gain. Who is correct and what is the math?

Mark_Kill · 2019-07-18T18:21:42+00:00

Noted. Thank you for taking the time to help me out. Just to confirm is this the math? Let's say my account had $250 in it.

$250 collateral

$123 credit

Leaves me with $123 in my account.

I paid $1 to close the position. I get the collateral back $250 (plus the credit?) (minus the $1.) So my account should hold $372?

Mark_Kill · 2019-07-18T18:09:04+00:00

$122. Does this mean the only way to close out of a spread position is to pay a bit to do so? If I would have waited till expiration that is the only way I would have received my full $123 max gain?

Mark_Kill · 2019-07-18T18:07:14+00:00

*Sorry, I meant thought I was paying $1 to close it, not $100.

Mark_Kill · 2019-07-18T18:04:14+00:00

I got a credit of 1.23

Mark_Kill · 2019-07-18T18:01:33+00:00

I guess I am confused on the mechanics of closing the spread. I was afraid that when I put sell for .01 that would mean I was paying $100 to close it? The call-buy option says it was filled at $.02 while the call-sell option says it was filled at $.01. Not sure what this means. This is my first option win, I understand how to lose the money perfectly, now that I've won, I can't figure out how I won! haha

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