BT1395 said:

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GreasenUSA said:

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if at 100%, sell half the calls. The half you remain holding would be net free.

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Right, but only for one more day and then the remaining calls expire worthless. In other words, is the only way to ride net free for a while if you have time until expiration? Was trying to think of a way to convert the calls to shares and be net free. Maybe I'm overthinking this...

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Why would the calls expire worthless? If you're in the money, and it closes in the money tomorrow, then you are good.

All going net-free does is allow you to recapture your initial investment and then let the rest ride. Yes, it could go to zero, but at least you haven't lost money. That could happen after it goes 4x and you sell off 1/4, or any other scenario that covers your initial investment.

BREwmaster said:

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SNSS about to blow!

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Why

Momo basing again..

DBX beats earnings and revenue up 10% AH

In at Juan Thousand!!!

McInnis 03 said:

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DBX beats earnings and revenue up 10% AH

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FSLY now down 9%. Hope its temporary. I also hit on the DBX. Hopefully the win in bigger than the loss.

Best 1000 pages on this website!!!

GreasenUSA said:

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BT1395 said:

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GreasenUSA said:

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if at 100%, sell half the calls. The half you remain holding would be net free.

---

Right, but only for one more day and then the remaining calls expire worthless. In other words, is the only way to ride net free for a while if you have time until expiration? Was trying to think of a way to convert the calls to shares and be net free. Maybe I'm overthinking this...

---

Why would the calls expire worthless? If you're in the money, and it closes in the money tomorrow, then you are good.

All going net-free does is allow you to recapture your initial investment and then let the rest ride. Yes, it could go to zero, but at least you haven't lost money. That could happen after it goes 4x and you sell off 1/4, or any other scenario that covers your initial investment.

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Sorry, but I'm confused. If I buy 10 calls at $1.35 with expiration of 2/21, for example, then I paid $1,350 for the right to buy 1,000 shares of the underlying. If I'm still holding those on 2/21 and they are priced at $2.70 as the market closes, then they go to zero immediately after the close, and I have $0, right??? Had I sold them one minute prior to market close, then I would have pocketed $2,700 for a gain of $1,350. Or I could have exercised the right to buy the shares knowing that I got a healthy discount on the current share price and would immediately have an unrealized gain in the stock position.

What am I missing here that would have led me to be good if they closed in the money?

BT1395 said:

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GreasenUSA said:

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BT1395 said:

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GreasenUSA said:

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if at 100%, sell half the calls. The half you remain holding would be net free.

---

Right, but only for one more day and then the remaining calls expire worthless. In other words, is the only way to ride net free for a while if you have time until expiration? Was trying to think of a way to convert the calls to shares and be net free. Maybe I'm overthinking this...

---

Why would the calls expire worthless? If you're in the money, and it closes in the money tomorrow, then you are good.

All going net-free does is allow you to recapture your initial investment and then let the rest ride. Yes, it could go to zero, but at least you haven't lost money. That could happen after it goes 4x and you sell off 1/4, or any other scenario that covers your initial investment.

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Sorry, but I'm confused. If I buy 10 calls at $1.35 with expiration of 2/21, for example, then I paid $1,350 for the right to buy 1,000 shares of the underlying. If I'm still holding those on 2/21 and they are priced at $2.70 as the market closes, then they go to zero immediately after the close, and I have $0, right??? Had I sold them one minute prior to market close, then I would have pocketed $2,700 for a gain of $1,350. Or I could have exercised the right to buy the shares knowing that I got a healthy discount on the current share price and would immediately have an unrealized gain in the stock position.

What am I missing here that would have led me to be good if they closed in the money?

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List the stock, the option strike and I already see we're talking about a Feb 21 expiration.

Your brokerage will force sale them if you don't have the funds to exercise the options.

If you're holding calls with an hour left into the close like that without the equity to buy them, it's sort of a bonehead move.

ZS, FSLY, APPN all down big ah

And OLED. DBX up

leoj said:

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ZS, FSLY, APPN all down big ah

And OLED. DBX up

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dodged ZS! sold today, bought NVDA on the dip.

FSLY looks like an overreaction!

BT1395 said:

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GreasenUSA said:

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BT1395 said:

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GreasenUSA said:

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if at 100%, sell half the calls. The half you remain holding would be net free.

---

Right, but only for one more day and then the remaining calls expire worthless. In other words, is the only way to ride net free for a while if you have time until expiration? Was trying to think of a way to convert the calls to shares and be net free. Maybe I'm overthinking this...

---

Why would the calls expire worthless? If you're in the money, and it closes in the money tomorrow, then you are good.

All going net-free does is allow you to recapture your initial investment and then let the rest ride. Yes, it could go to zero, but at least you haven't lost money. That could happen after it goes 4x and you sell off 1/4, or any other scenario that covers your initial investment.

---

Sorry, but I'm confused. If I buy 10 calls at $1.35 with expiration of 2/21, for example, then I paid $1,350 for the right to buy 1,000 shares of the underlying. If I'm still holding those on 2/21 and they are priced at $2.70 as the market closes, then they go to zero immediately after the close, and I have $0, right??? Had I sold them one minute prior to market close, then I would have pocketed $2,700 for a gain of $1,350. Or I could have exercised the right to buy the shares knowing that I got a healthy discount on the current share price and would immediately have an unrealized gain in the stock position.

What am I missing here that would have led me to be good if they closed in the money?

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Yeah, as OA said, give us the ticker and strike. It sounds like you may be talking about something that is out of the money. Otherwise, if they are in the money, and you don't have the cash to cover them, then your broker will sell them for you at the last traded premium price at the end of the day on Friday.

GreasenUSA said:

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BT1395 said:

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GreasenUSA said:

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BT1395 said:

---

GreasenUSA said:

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if at 100%, sell half the calls. The half you remain holding would be net free.

---

Right, but only for one more day and then the remaining calls expire worthless. In other words, is the only way to ride net free for a while if you have time until expiration? Was trying to think of a way to convert the calls to shares and be net free. Maybe I'm overthinking this...

---

Why would the calls expire worthless? If you're in the money, and it closes in the money tomorrow, then you are good.

All going net-free does is allow you to recapture your initial investment and then let the rest ride. Yes, it could go to zero, but at least you haven't lost money. That could happen after it goes 4x and you sell off 1/4, or any other scenario that covers your initial investment.

---

Sorry, but I'm confused. If I buy 10 calls at $1.35 with expiration of 2/21, for example, then I paid $1,350 for the right to buy 1,000 shares of the underlying. If I'm still holding those on 2/21 and they are priced at $2.70 as the market closes, then they go to zero immediately after the close, and I have $0, right??? Had I sold them one minute prior to market close, then I would have pocketed $2,700 for a gain of $1,350. Or I could have exercised the right to buy the shares knowing that I got a healthy discount on the current share price and would immediately have an unrealized gain in the stock position.

What am I missing here that would have led me to be good if they closed in the money?

---

Yeah, as OA said, give us the ticker and strike. It sounds like you may be talking about something that is out of the money. Otherwise, if they are in the money, and you don't have the cash to cover them, then your broker will sell them for you at the last traded premium price at the end of the day on Friday.

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NET $17.50 calls EXP 02-21-20. Underlying stock is at $20.30.

Sold them late this afternoon when I finally sat down at my desk and saw where they were. Are you saying that, had I not sold the calls by market close tomorrow afternoon, my broker would have automatically exercised the option and purchased the shares of the underlying? I never knew that - I simply thought I was just buying the RIGHT to purchase shares and that it was my responsibility to either sell the option, exercise it, or let it expire.

Interesting

oldarmy1 said:

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Seeing services on SQ March 20 $95 calls. Volume is building and it was definitely interrupted on a breakout move today.

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Ugh I got stopped out today and wasn't active today to see the opportunity to buy the dip.

fightintxag13 said:

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oldarmy1 said:

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Seeing services on SQ March 20 $95 calls. Volume is building and it was definitely interrupted on a breakout move today.

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Ugh I got stopped out today and wasn't active today to see the opportunity to buy the dip.

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Can definitely get back into it. Just starting a breakout move up.

BT1395 said:

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GreasenUSA said:

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BT1395 said:

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GreasenUSA said:

---

BT1395 said:

---

GreasenUSA said:

---

if at 100%, sell half the calls. The half you remain holding would be net free.

---

Right, but only for one more day and then the remaining calls expire worthless. In other words, is the only way to ride net free for a while if you have time until expiration? Was trying to think of a way to convert the calls to shares and be net free. Maybe I'm overthinking this...

---

Why would the calls expire worthless? If you're in the money, and it closes in the money tomorrow, then you are good.

All going net-free does is allow you to recapture your initial investment and then let the rest ride. Yes, it could go to zero, but at least you haven't lost money. That could happen after it goes 4x and you sell off 1/4, or any other scenario that covers your initial investment.

---

Sorry, but I'm confused. If I buy 10 calls at $1.35 with expiration of 2/21, for example, then I paid $1,350 for the right to buy 1,000 shares of the underlying. If I'm still holding those on 2/21 and they are priced at $2.70 as the market closes, then they go to zero immediately after the close, and I have $0, right??? Had I sold them one minute prior to market close, then I would have pocketed $2,700 for a gain of $1,350. Or I could have exercised the right to buy the shares knowing that I got a healthy discount on the current share price and would immediately have an unrealized gain in the stock position.

What am I missing here that would have led me to be good if they closed in the money?

---

Yeah, as OA said, give us the ticker and strike. It sounds like you may be talking about something that is out of the money. Otherwise, if they are in the money, and you don't have the cash to cover them, then your broker will sell them for you at the last traded premium price at the end of the day on Friday.

---

NET $17.50 calls EXP 02-21-20. Underlying stock is at $20.30.

Sold them late this afternoon when I finally sat down at my desk and saw where they were. Are you saying that, had I not sold the calls by market close tomorrow afternoon, my broker would have automatically exercised the option and purchased the shares of the underlying? I never knew that - I simply thought I was just buying the RIGHT to purchase shares and that it was my responsibility to either sell the option, exercise it, or let it expire.

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You bought them at $1.35. $17.50 strikes means you needed $18.85 to be at net even on the options. You definitely did the right thing in selling the options straight up because owning the shares at $18.65 isn't as banking the profit catching a stock pop within a day of expiration.

Most brokerages will assign shares to you if the stock is above $17.50 tomorrow at close. If the stock was say $18 you just lost money on the premium to share assignment, because you don't get that $1.35 back.

Some brokerages will sell calls at expiration if you don't have funds to cover calling out the shares, but you DEFINITELY want to get all of the rules of your brokerage because I know some will assign shares and hit you with a nice bill to pay for the shares. Granted you can instruct them to sell the shares but sometimes they make you cover the cost for a clean transaction tying up your money.

Great trade though!

BT1395 said:

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GreasenUSA said:

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BT1395 said:

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GreasenUSA said:

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if at 100%, sell half the calls. The half you remain holding would be net free.

---

Right, but only for one more day and then the remaining calls expire worthless. In other words, is the only way to ride net free for a while if you have time until expiration? Was trying to think of a way to convert the calls to shares and be net free. Maybe I'm overthinking this...

---

Why would the calls expire worthless? If you're in the money, and it closes in the money tomorrow, then you are good.

All going net-free does is allow you to recapture your initial investment and then let the rest ride. Yes, it could go to zero, but at least you haven't lost money. That could happen after it goes 4x and you sell off 1/4, or any other scenario that covers your initial investment.

---

Sorry, but I'm confused. If I buy 10 calls at $1.35 with expiration of 2/21, for example, then I paid $1,350 for the right to buy 1,000 shares of the underlying. If I'm still holding those on 2/21 and they are priced at $2.70 as the market closes, then they go to zero immediately after the close, and I have $0, right??? Had I sold them one minute prior to market close, then I would have pocketed $2,700 for a gain of $1,350. Or I could have exercised the right to buy the shares knowing that I got a healthy discount on the current share price and would immediately have an unrealized gain in the stock position.

What am I missing here that would have led me to be good if they closed in the money?

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calls with intrinsic value, In The Money, expire equal to that value.

Thanks to all for the quick options education on my NET calls. Learn something new every day...

As someone said earlier, here's to another 1,000 pages of green numbers!

For those of you actively day trading, how complicated does filing your taxes become? Are you simply importing from something like TD Ameritrade to Turbo Tax?

Boat Shoes said:

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For those of you actively day trading, how complicated does filing your taxes become? Are you simply importing from something like TD Ameritrade to Turbo Tax?

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Most services provide the data matched up buy/sell. Easy records.

I'd like to piggyback this question -- Thanks to OA, and others, on this site I've cashed in some nice gains over the last 12 months. Unfortunately all this trading has been done in my non-retirement account & has all been short term gains. The short term gain tax will be substantial! My retirement accounts (Roth IRA, 401k, etc) are full of S&P and I'm not looking to change that situation so the question is -- Is there any secret sauce to lessen the major tax bill while trading? I'm guessing the answer is NO, but figured I'd ask considering the amount of folks trading on this forum. Thanks!

HoustonAg_2009 said:

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I'd like to piggyback this question -- Thanks to OA, and others, on this site I've cashed in some nice gains over the last 12 months. Unfortunately all this trading has been done in my non-retirement account & has all been short term gains. The short term gain tax will be substantial! My retirement accounts (Roth IRA, 401k, etc) are full of S&P and I'm not looking to change that situation so the question is -- Is there any secret sauce to lessen the major tax bill while trading? I'm guessing the answer is NO, but figured I'd ask considering the amount of folks trading on this forum. Thanks!

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The first one is free but we have to charge you for the rest.

Uncle Sam takes his bite. No way around it if substantial.

HoustonAg_2009 said:

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I'd like to piggyback this question -- Thanks to OA, and others, on this site I've cashed in some nice gains over the last 12 months. Unfortunately all this trading has been done in my non-retirement account & has all been short term gains. The short term gain tax will be substantial! My retirement accounts (Roth IRA, 401k, etc) are full of S&P and I'm not looking to change that situation so the question is -- Is there any secret sauce to lessen the major tax bill while trading? I'm guessing the answer is NO, but figured I'd ask considering the amount of folks trading on this forum. Thanks!

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Put it in an opportunity fund?

I do my trading in my Roth.

If I ever go WSB big, I'll take the penalty

leoj said:

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I got in big at $30 so I've been waiting for this kind of momentum!

BREwmaster said:

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bought some NVDA on the dip! won't be this cheap for long.

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Was long 4k shares at $19.50 cost basis. Sold 1500 back in 2018 in the $250 area and then painfully stopped out another couple two thousand shares under $200 in 2019. Sold 500 shares above $300 yesterday. Was a good trade but made many mistakes. Glad I am out.

AgsnFly said:

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BREwmaster said:

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bought some NVDA on the dip! won't be this cheap for long.

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Was long 4k shares at $19.50 cost basis. Sold 1500 back in 2018 in the $250 area and then painfully stopped out another couple two thousand shares under $200 in 2019. Sold 500 shares above $300 yesterday. Was a good trade but made many mistakes. Glad I am out.

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I mean....that's not bad at all lol.

You good with being all out with the potential growth still ahead?

Where is everybody today?