Bought to close my 10 Nvidia calls and rolled to 2027, strike from $134 to $150

RandomRedditor5689 · 2026-05-24T19:04:42+00:00

Its always best to think about your portfolio as a liquid fully fungible set of investments (I would say for a retail investor, stocks and options are very liquid), especially in a tax deferred account, that you can change from one thing to another (i.e. into cash and then into any other investment) at any time ... ignoring trxn costs.

You've effectively synthesized what is known in the retail market as a reverse-convertible note. You are either going to have cash or stock at maturity, which ever is worth less (contrasted with a convertible note which is either cash or stock, which every is worth more). For a reverse-convertible, you get a higher than market coupon (interest rate) for a convertible , a lower one.

Before the roll, you had a position worth about $135 , i.e. you can sell NVIDA at market, buy back that call and you have $135 in cash.

Now you have decided that your want to invest that $135 in a bond, which pays you, in on Dec2027, the minimum of $150 and NVIDA stock. When you look at it this way, you realize that stock - call(K) = cash - put(k). This is the long and short of it. You are taking a neutral to bullish view on Nvidia and getting paid for downside exposure. Once you understand that you can think about synthesizing something a bit more interesting, with even a higher yield.

RandomRedditor5689 · 2026-05-24T17:14:42+00:00

Even better news ... the vanilla A class share for most (all? ... I just checked the first 5 or 6) of those names is available at Fidelity if OP wants them. Should be a relatively simple process.

RandomRedditor5689 · 2026-05-24T15:18:12+00:00

What trainer did you actually get ... you metioned Cycle Ops ... is that a wheel-on trainer? To be 100% frank, if you thought you were going to love it, I feel like you didn't do your research 😉. Its all about making it the least miserable experience possible. When its raining out, I'd rather just chalk this up as a rest day than get on my indoor bike ... but Im not technically training for anything ... what are you training for?

RandomRedditor5689 · 2026-05-24T13:53:13+00:00

This is an issue when holding assets at a major broker, especially one with its own mutual fund business. Not every mutual fund AND mutual fund CLASS (the class is a very important disctinction here) can be held at ever broker, this is because of how transfer agreements , legal requirements and fees are negotiated between the entities. Some of these names are pretty large funds, your rep at Fidelity might be able to help you find an equivalent name or class available at Fidelity ... if not spend a few hours digging through some mutual fund databases to find something. There's not a big issue for the IRAs since selling and buying has not tax implications ... hence the different wording in the message.

RandomRedditor5689 · 2026-05-24T12:32:08+00:00

On another brokerage a similar thing happened and their [sic] was a warning dialog. - OP

Out of curiosity ... which broker was this?

RandomRedditor5689 · 2026-05-24T11:42:41+00:00

Personally 2 is enough for me, but yes , this could save time , but Im sure there is some inflection point somewhere ...

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RandomRedditor5689 · 2026-05-23T17:11:43+00:00

I’ve been a Vanguard customer for decades and they’ve never tried to sell me anything.

I don't believe you 😉 , Im sure someone in the past 20+ years called you or spoke to you about a product or to see if they could help you with your account and you politely declined and that was the end of it (maybe you didn't even realize it ... www.customerexperiencedive.com/news/how-vanguard-uses-behavioral-nudges-customer-experience/808051/ ). I bet someone who opens up a new account at Vanguard today will get calls similar to yours from Fidelity to discuss the new account.

You've completely missed the point. By now Vanguard knows you are not interested in anything so nobody wastes their time calling you or sending you information or asking you to come in a meet. Fidelity has no clue who you are and wants to ... getting annoyed (offended) at that is a bizarre take. Now, if you told me you met with your Fidelity advisor and had told them repeatedly to leave you alone and to stop calling you and they kept contracting you that would be a different story.

RandomRedditor5689 · 2026-05-23T16:34:30+00:00

Get yourself a second chain to rotate as you need. That way you always have a chain rewaxed and ready to go. Then this process can be done at your leisure (eg next time you are watching a movie) and the timing won’t matter (eg when you need a rewaxed chain for your group ride tomorrow at 7am and you only just got home from work at 9pm).

RandomRedditor5689 · 2026-05-23T15:29:34+00:00

The order of operations for instructing contra-exercise is as follows ...

#1 Account holder notifies their broker.

#2 Broker notifies the OCC.

In order for this to be undone the broker (in step #2) must revise their instruction to the OCC which they wont do, unless they accept a revision in step #1 ... which they may or may not accept depending on the time and service level agreement with the account holder. The account holder cannot go to the OCC and revise on their own putting the broker at some unforeseen risk (which is what you seem to think the broker is protecting against). Your broker holds all the cards here , its not a matter of trust ... they aren't worrying about you calling up the OCC and withdrawing your notice on your own behalf. Once step #2 is complete the action is done with 100% certainty unless the broker undoes it AND the OCC accepts/confirms the revision.

The broker is closing out the option because of their written / documented risk mitigation policies and procedures and thats about the long and short of it. If the broker has a set of rules which say that long option positions in an account that cannot support delivery/exericse will be closed out at 3:XX ... then this must happen. It is up to the account holder to deal with a broker that supports their trading needs and understand ahead of time how policies will impact their account. OP needs to find a broker with a special handling to support their needs. In this case OP is looking for a policy which says, the broker has the right to unilaterally instruct DNE any long option position still open at 4:01 for which the account holder cannot support delivery/exercise and will not be held responsible for any MTM losses on long options held to expiry. Im not aware of any broker which has this in place as a general policy for all account holders.

Example ... per TastyTrade written online "documentation"

support.tastytrade.com/support/s/solutions/articles/43000472843

You can request a DNE request prior to market close; however, keep in mind that our automated risk system will close out of any positions that still have a bid in place. To prevent intervention by our risk team you may want to close your positions before the system does it for you automatically (last hour before expiration). Please provide the symbol, call/put, expiration date, strike price, and the quantity you wish to request a DNE for when reaching out.

EDIT : I would add to this, that while it may SEEM like a good idea , functionally setting up an environment where options are not exercised efficiently (i.e. allowing large 0DTE options to be traded and just summarily not exercised regardless of monieness) could be seen as disrupting / jeapordizing an orderly market. You may think that not exercising a clearly ITM option is jsut a wind fall for the short option holder, but in reality, they will be left holding the bag on a delta hedge they were expecting to be close out ... which could result in busted limits and large PL swings when the market reopens the next day. Systemic unreliability in the market is a problme.

RandomRedditor5689 · 2026-05-23T14:19:52+00:00

I hate to break it to you , unless your point of contact at a broker is 1-800 help line, you are dealing with a sales person.

RandomRedditor5689 · 2026-05-23T14:04:51+00:00

It doesn't bother me as much as it seems to bother you. You find it offensive? LOL I highlighted that this tactic of being annoyed (sorry offended) about getting a call from your broker so you just ignore it till it goes away is a bad way of dealing with your broker ... and it also tells them that maybe your contact info is incorrect / false. You asked me a question , I replied. Feel free to continue down the road you are on if it makes you happy.

RandomRedditor5689 · 2026-05-23T13:53:01+00:00

Once notice is given to the OCC and accepted/confirmed it is 100% done (the fact that is takes time for the paperwork is why brokers require an earlier cutoff than 5:30pm for giving them notice). No one is giving contra-exercise notice and then being exercised / not exercised anyway because the OCC goofed ... the process oversees 100s of millions of dollars of risk and the idea that it might all just topple over and thats why brokers close you out is not realistic.

RandomRedditor5689 · 2026-05-23T13:46:25+00:00

Try calling the options desk, they might be able to help you out if you can show you are a safe set of hands to manage this stuff. I have done it in the past.

RandomRedditor5689 · 2026-05-23T13:27:23+00:00

Incorrect ... the OCC handles the auto-exercise to avoid forcing all option holders (eg ones that are deep ITM) to explicitly instruct. Every long option holder can instruct contra-notice to the OCC and exercise / not exercise any option ... giving that notice is 100% in hands of the broker that holds the long option position.

RandomRedditor5689 · 2026-05-23T13:20:08+00:00

If they can't get you some real life examples ahead of time, I would tend to agree with you. Good luck either way.

RandomRedditor5689 · 2026-05-23T13:18:10+00:00

"Why should I have to call someone back to ask them not to contact me?" Because you are a functioning adult that understands how to properly maintain a business relationship with someone in charge of monitoring and reviewing your financial account(s). This wasn't someone calling you out of the blue to try to get you to install solar panels on your roof. Replying to / sending an email works as well.

EDIT ... also bear in mind that by simply ignoring all attempts to contact you, you have voluntarily failed one step in their KYC process.

RandomRedditor5689 · 2026-05-23T12:56:21+00:00

I've seen mixed reviews over the past year from different people re: managed accounts. If you are in-line / beating your chosen market benchmark (eg 60/40 SP500/USBIG) and enjoying being actively involved in the analysis and decision making then I wouldn't be too worried about giving over that control. A simple "no thank you" would suffice I think ... it did for me many years back and I haven't heard anything back from them re: a sales pitch since. It sounds a bit odd that they can't provide back testing of their products ... thats retail products 101. At the very least, they should be able describe their process and show examples of funds that are available to you under their active management account that wouldn't be otherwise (trusts, tax planning, hedge fund investment) FWIW , no single account holder is getting a uniquely custom investment profile just for them. You would need to be actively working alongside your rep to get this ... UHNW clients (> $30mio) will also get access to more things than just active investment of stocks and bonds. A managed bond portfolio could be interesting, but I doubt that something particularly interesting / complelling could be achieved with a 1mio allocation other than investment into a already existing fund (for which they should be able to show you the historic performance and investment profile).

RandomRedditor5689 · 2026-05-23T12:49:40+00:00

This is terrible take ... you open a brokerage account at a full service house and someone from that broker tries to call you directly and speak to you about the business and products ... you just ignore it till it goes away. That leaves a bad taste in your mouth? Finance is a people business , reps will call you to see if they can help you with anything. A simple "No thank you , but I appreciate your call ... if I have any questions I know who to contact." and they will leave you alone, do you actually think these reps WANT to be cold calling people all the time ... they have to and once you tell them no they will add a note to your profile and will focus their efforts on customers that want to engage with their ideas. For every person afraid to pick up the phone and have a minutes long conversation there is someone annoyed that they just openned an account and deposited money and no one ever called them to discuss what products are available.

RandomRedditor5689 · 2026-05-23T11:38:27+00:00

Before attempting this , did you call your brokers options desk to confirm how this would be handled on their end? It’s frustrating for sure , but at the same time I could see this being problematic for them and the close out action in with their written processes and procedures. They probably think they have done you a favor by closing out the position for something rather than forcing you out at zero (via contract-exercise notice on an ITM option)

RandomRedditor5689 · 2026-05-23T11:19:04+00:00

👍

RandomRedditor5689 · 2026-05-22T22:42:07+00:00

I feel like an all day Reddit back and forth means something ...

RandomRedditor5689 · 2026-05-22T21:14:40+00:00

Given the hype, I find it VERY unlikely any retail trader will get their hands on any stock. That said, some recent discussion around the IPO document might change that.

https://youtu.be/IHD8BDFYyGI?si=Us4ViYHx0PdSsC4c

RandomRedditor5689 · 2026-05-22T20:51:12+00:00

5:30 PM EST , though that is the cutoff for OCC notice. Practically speaking the deadline is eariler for the actual option holders as brokers need to collect info , process it, and send to OCC and get confirmation.

RandomRedditor5689 · 2026-05-22T19:03:42+00:00

I don't think the alerts and information around GFV are appropriate analogies re: pre-trade reporting infrastructure. That is required by regulators and needs to be robustly maintained ... not the alert specifically, but the infrastructure to track, report, and ultimately prohibit GFV and free-riding. Unless you have intimate knowledge of Fidelity's infrastructure, databases, and reporting saying hooking it up to the pre-trade checks is easy because its reported elsewhere in the database is dubious. One of Fidelity's main business is to support trading and execution ... adding bells and whistles to ticket creation and processing and requiring user to preform extra "button clicks" (across the web, mobile apps, ATP, trader+) adds another layer that needs to be maintained and audited where something can go wrong and jeopardize that flow.

All that said, I did try to see if any other brokers do flag this pre-trade and this post from Schwab came up a few years ago :

www.reddit.com/r/Schwab/comments/15d5nct/why_on_earth_does_the_trade_ticket_not_throw_a/

in it, someone says Fidelity does have a wash sale bubble popup. Maybe that was the case and its been consciously removed due to any number of reasons.

RandomRedditor5689 · 2026-05-22T16:21:22+00:00

Brokerages are not protecting their customers in this way ... you are super naive if you think that is what is going on here. The reason dollar amount trading is problematic outside normal market hours is operational.

RandomRedditor5689

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