Recent content by qwerty156

Fair enough, a weekend exercise would have ruined my weekend. Whats the risk of getting called on calls which are closer to ITM (say shorting ~20% below calls) and rolling onto higher strikes as it keeps moving up? The spreads are pretty high on this to trade often though, especially with so...

Apart from the risk of getting assigned the call if it goes too deep ITM, what else is the risk on this? As I understand it, I have a limited risk on credit call spreads

Yeah, that was part of the trade - short the ultra high IV puts and hedge with bear call credit spreads. Just a little unsetlling to wake up to a 60k margin call on a 9k account. Might give it another shot with higher strike calls with some extrinsic value left.

@elt894 and @FSU Ended up getting assigned on the deep ITM short calls this morning as y'all had predicted. My broker (RobinHood) allowed me to exercise the closer to strike calls to offset the margin call. Apart from a margin call scare, no harm done. As for the trade, I lost about ~$400 to...

@elt894 and @Robert Morse Right, makes sense. In your experience, what %age of time does this happen? It seems like TLRY put/call ratio is currently 0.8, although that doesn't tell me much about aggregate market maker's delta in options market. There is a chance that doesn't happen, right?

Also, another question I had, is that since owning the call is preferable to owning the stock at current prices, why would you want to buy and exercise the call (even though its trading below IV)? I get that its trading below IV, but only by ~$0.05, nothing compared to the spreads and volatility...

Additionally, one question I had is that if vol drops, I should earn money on the short put side of the trade, right?

Thanks a lot for the input! I really appreciate it. I thought that since I was long the 70 and 65 strike calls, I can exercise them as well if I get assigned. Since I didn't really pay much over intrinsic value for my entry, I don't lose money right? If this is true, then my real risk would be...

I actually was able to put in an a pure arbitrage at current prices for TLRY. If you see the option chain, put call parity is actually violated due to the high borrow rate for the stock (NTM options imply forwards near ~$70). You can short NTM and OTM puts, while using deep ITM calls/credit call...