Cash settled at expiration, was expecting the underlying stock

[TheDawn]

In such an important technical/mathematical discussion, one expects accurate information & statements, not sloppy BS.
He failed in this respect, and this upsets me with such people. They are not serious, they just disturb any serious discussion with their insistence on their wrong thinkings. And when asked, they won't nor can't prove their claim, instead go to insulting & badmouthing mode...
I'm investing precious time in such discussions, to learn as well to inform others. I'm not interested to discuss with such idiots who can't follow basic etiquette.

Mathematical and technical discussion??!! Really?? You haven't reached that level in options trading yet tbh that I would need to involve mathematical and technical discussion when you can't even look at a PnL diagram to see where the potential risks of vertical spreads are.

And prove to you?? Seriously??!! It's your trading and your life? What is it that I need to prove to you for?? LOL I already did you a favour by telling you vertical spreads are riskier than you think and showed you where and how you can evaluate the risk. I still need to prove to you??!! LOL The time when you lose everything that you have earned will be my proof.

I don't wish losses upon people but to people like you, that's the only way you will learn. LOL Good luck!!

 

[earth_imperator]

Ok then,
But keep in mind your first post was pretty confusing and perhaps indicative of where you are on your journey..

But the problem was already solved! Then this guy came along and unnecessarily continued the discussion and tried to sell me more than I was looking for.

Imagine this: I've invested weeks and months hard work, research, and money into this project, then such a guy comes and tells me my work is buggy. When I ask him what is buggy he can't answer. This is very frustrating and de-motivating, since this poses a big investment for me. He should be careful, and most importantly, be correct in his judging of such a work of others.

What criteria do you use to select spreads??

I'm scanning a big list of tickers w/ their options and create a ranked list. The main criteria is of course PL%. But besides this also some other criteria have weight in creating the score. The list is sorted descendingly by the score.
The real problem begins after that process: getting the orders filled. For this, one needs automation, so that one can try multiple orders sequentially to get a fill (ie. try one say 5 minutes long to get a fill, if not successful then try the next in the list... so in a round-robin fashion) . I'm still working on this programming part.
Of course this is not daytrading. DTEs are less than 3 months. But as already said in other thread: for diversification I need to split my AUM into >= 20 spread positions (ie. in this case >= 40 legs in total), to keep the risk per spread position under 5% of the AUM...

 

[taowave]

But what makes you decide on the strikes,i.e how wide, how many days to expiration??

It could be as simple as you are willing to risk one to make 3,or you could get a little wilder and talk skew..

Your example of the spread you posted was really wide om a percentage basis..What made you choose those strikes??

But the problem was already solved! Then this guy came along and unnecessarily continued the discussion and tried to sell me more than I was looking for.

Imagine this: I've invested weeks and months hard work, research, and money into this project, then such a guy comes and tells me my work is buggy. When I ask him what is buggy he can't answer. This is very frustrating and de-motivating, since this poses a big investment for me. He should be careful, and most importantly, be correct in his judging of such a work of others.


I'm scanning a big list of tickers w/ their options and create a ranked list. The main criteria is of course PL%. But besides this also some other criteria have weight in creating the score. The list is sorted descendingly by the score.
The real problem begins after that process: getting the orders filled. For this, one needs automation, so that one can try multiple orders sequentially to get a fill (ie. try one say 5 minutes long to get a fill, if not successful then try the next in the list... so in a round-robin fashion) . I'm still working on this programming part.
Of course this is not daytrading. DTEs are less than 3 months. But as already said in other thread: for diversification I need to split my AUM into >= 20 spread positions (ie. in this case >= 40 legs in total), to keep the risk per spread position under 5% of the AUM...

 

[earth_imperator]

But what makes you decide on the strikes,i.e how wide, how many days to expiration??

It could be as simple as you are willing to risk one to make 3,or you could get a little wilder and talk skew..

Your example of the spread you posted was really wide om a percentage basis..What made you choose those strikes??

It's a delicate issue Still, above I alread gave the answer, at least an important hint...
If you can't figure it out, just drop me a PM...

Just an old demo scanner output to give another hint, incomplete to the right:

 

[TheDawn]

But the problem was already solved! Then this guy came along and unnecessarily continued the discussion and tried to sell me more than I was looking for.

Imagine this: I've invested weeks and months hard work, research, and money into this project, then such a guy comes and tells me my work is buggy. When I ask him what is buggy he can't answer. This is very frustrating and de-motivating, since this poses a big investment for me. He should be careful, and most importantly, be correct in his judging of such a work of others.

Says somebody who doesn't even know when short option expired OTM there is no assignment

I had a vertical Put spread of ticker CLNN for strike 2.50 (short) and 1.00 (long).
Yesterday at expiration the ShortPut expired in my favor and I've earned the full credit.
I was thinking the OCC (or the broker) will give me the underlying stock,
but today in my account I see nothing of CLNN anymore. Ie. they seem to have cash-settled it.
I was thinking cash-settlement is done only with index options.
Can an expert comment on this situation? Thx.
I just want to be sure about what to expect the next time in such a similar situation.
I even prefer such cash-settlement over getting the stock. So, I'm not complaining at all

and doesn't even know how to read a PnL diagram

Thanks, but I'm just fine with spread trading. I found my destination, so to say. This is my playground for many years to come.

Sorry, I can't confirm your above concerns and reservations.
Spreads are the best and safest trading vehicles ever invented, IMO.
I've become a big fan of spreads.

So, again, thanks, but no, thanks

Where do you see any risk in such a PnL diagram? It's a perfect system, IMO. This is a screenshot from the link I gave above.
Btw. my profit from that trade was 30.90% in less than 3 weeks. That's not bad IMO

View attachment 295373

and I am the one who has to be careful about "judging his work". LOL

Sure I will be careful. I really should've been careful right from the beginning and kept my mouth shut. Some people just really don't deserve people's help.

 

[earth_imperator]

@TheDawn, stop now and just piss off as I don't need any help of someone like you!
This thread is my thread and I ask you not to participate in any of my threads. Otherwise I'll file an official complaint to the mods. You are herewith officially warned by me in public.

 

[earth_imperator]

It's a delicate issue Still, above I alread gave the answer, at least an important hint...
If you can't figure it out, just drop me a PM...

Just an old demo scanner output to give another hint, incomplete to the right:

View attachment 295476

Hint 3: in this posting I had posted a combination table of 5 strikes in up to 4 legs.
With 2-leg spreads the process is similar: just walk all the 2-leg combinations of all the strikes (of all DTEs avail! ), and create for each combination a score... Ie. do a brute-force search for the best ones...

Of course you have to "serialize" the strikes (i.e making each a unique one, even if K is same from multiple ExpDates, which usually of course is) by prepending the DTE or ExpDate... This is especially necessary for calendar spreads.

 

[TheDawn]

@TheDawn, stop now and just piss off as I don't need any help of someone like you!
This thread is my thread and I ask you not to participate in any of my threads. Otherwise I'll file an official complaint to the mods. You are herewith officially warned by me in public.

I will do or say whatever I want to whatever thread I like. This is a free country and we have freedom of speech that's protected by the Constitution, something that you obviously don't know anything about. This is a public forum and you own nothing on this forum. If you don't like it, you are more than welcome to put me on "Ignore" or better yet, do us all a favour, leave this forum and never come back.

As to this thread, rest assured I will not say a peep more. I have tried my best but I've had enough of the shit here.