Might Be in Trouble: What happens when a Naked Put Expires?

[destriero]

I'll spoof 500K to buy at 18.90 and see if we get a bump.

 

[zghorner]

I'll spoof 500K to buy at 18.90 and see if we get a bump.

Lmao you’re not serious? What I should do is is buy a $19.50 put so the price jumps to $20...I have that effect on everything I touch it’s like handicapped magic or something.

 

[MKTrader]

"I did some trade that I don't really understand and I might be in trouble but I'm not sure..."

Just what I'd expect on an "elite" trading site.

 

[zghorner]

"I did some trade that I don't really understand and I might be in trouble but I'm not sure..."

Just what I'd expect on an "elite" trading site.

i like how your post was exactly what i'd expect from an "elite" trading site...dick head comment for no reason but to be a dick head. Well done bud.

 

[krugman25]

I'll spoof 500K to buy at 18.90 and see if we get a bump.

Lolol

 

[zghorner]

$18.98 right now holy shit this is exciting.

 

[El OchoCinco]

I shorted 70 put contracts. The price was $0.054 per put each contract represents 100 shares of underlying so $5.40 per contract X 70 = $378 in premium that i collected and will keep if it expires above $19.

if those contracts expire under the strike price then i will have to buy those shares as i understand it. With 70 contracts that is 7,000 shares @ $19 strike so $133,000.

If i am wrong please let me know.

First, you should refer to the option price on a per share basis like it is quoted in the market. You confused the crap out of everyone citing $5.40 as the price.

Second, yes you are wrong for selling naked puts for $0.05. Does that sound prudent to you, selling 70 to make some pennies.?

Risking thousands upon thousands of dollars to make $350 gross? Newbie mistake...

 

[zghorner]

First, you should refer to the option price on a per share basis like it is quoted in the market. You confused the crap out of everyone citing $5.40 as the price.

Second, yes you are wrong for selling naked puts for $0.05. Does that sound prudent to you, selling 70 to make some pennies.?

Risking thousands upon thousands of dollars to make $350 gross? Newbie mistake...

I agree. Dumb move 100%. No more selling options for me till I get a handle on everything.

 

[krugman25]

First, you should refer to the option price on a per share basis like it is quoted in the market. You confused the crap out of everyone citing $5.40 as the price.

Second, yes you are wrong for selling naked puts for $0.05. Does that sound prudent to you, selling 70 to make some pennies.?

Risking thousands upon thousands of dollars to make $350 gross? Newbie mistake...

All you needed was a mic drop at the end.

All 100% on the money

 

[zdreg]

i like how your post was exactly what i'd expect from an "elite" trading site...dick head comment for no reason but to be a dick head. Well done bud.

You best show some modesty and don't call people names, you are obviously an amateur trader who should not be allowed to trade naked options.