Recent content by BamaTrader

Another choice would be just covered calls. Find a stock you don’t mind owning, buy 100 shares and start doing CCs on it. Basically sell a 30 or so delta CC. Let it run. If it expires, do it again. If it assigns, buy another 100 of it or something else and start again. I will sometimes use...

It looks to me like you are way overthinking it. A simple way to get involved is to use the wheel strategy. Basically CSPs and CCs. Start slow with a single contract on something priced say under $50. You will need capital of 100x the price. Start with a CSP. If you are not familiar, do...

I think you will see a movement from 2 day settlement to 1 day and eventually instantaneous. Please don’t make trading be 24/7. No one wants to be awake at 4am concerned about a trade. Also the off time allows for another type circuit breaker for significant events. I could see expanded...

I guess I did not exactly answer you. As was answered, it is based on the 4et closing of the markets but as stated that sometimes is delayed due to high volume days etc but is generally at 4et.

Auto assignment is based on the closing price on the day of expiration. But where it gets a little murky is that the option buyer has that narrow time prior to the deadline where he can look at things like after hours or earnings releases and decide to do something different than what the auto...

I think the more complete answer is that an option expires at 1159 pm on expiration day. It will be auto assigned based on the closing price of the underlying compared to the strike price with 0.01 ITM initiating an auto assignment. If the buyer wishes to change what the auto assignment would...