How bad? My guess is that the guy shorted 50 of them at 0.3 for $1,500 in premo. He's not freaked out from a one lot. 90% of naked put sellers do not have the capital to take possession of the shares. It's why BDs like IB will automatically buy them back at mkt 15 minutes before the close if you are not cash secured if/when assigned.
Moron . Naked put options otm Friday. BUT stock price went down after hours...interactive brokers
- Thread starter pointbob
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How bad? My guess is that the guy shorted 50 of them at 0.3 for $1,500 in premo. He's not freaked out from a one lot. 90% of naked put sellers do not have the capital to take possession of the shares. It's why BDs like IB will automatically buy them back at mkt 15 minutes before the close if you are not cash secured if/when assigned.
Wait, IB let you short them naked? So you obviously have enough cash to hold the shares w/o receiving a call on Monday.
C'mon man, give us the particulars. How can we railbird a blowup if we don't know how much you stand to lose?
And guys--don't tell him he should have spread it off. Shares could have closed inside the strikes on a vertical. But yeah, don't short naked unless you're cash-secured.
exp was friday sept 4 2020...and unfortunately it got assigned....i now own the shares...it's frustrating since the close price was way below....i know its not going to make a difference but how can they allow after hours prices to affect options prices when there is no way to trade options as a corollary. Seems one sided....
also would it have been the broker who would just automatically assign...I read on the interactive brokers website that the options writer must contact them by 430pm estime to manually instruct exercising out of the money options....
Yes I'm cash secured but it's in margin call territory now so likely broker will dump at open....i'm down over $20k right now...
would buying a covered call help stem some of the losses? god so dumb.
Bummer...Sorry man. And you know, of course, that soon after IB rips them out of your account Tesla will rocket. It's like Roadrunner and Coyote, not only do you fall off the cliff, the anvil hits you in the head too. 
Here's one bit of good news? Umm, market is closed on Monday, so you have an extra day to sweat out your losses? Sunday's future action can give you hope?
I concur,with the exception of that beast known as TSLA
If I am not mistaken,I don't think you can buy back anything neat ATM for a nickel...
no you can’t except at like 359pm.
it’s always the strikes that are 10-15percent otm and implied vol is 30
You would have to sell a call before IBTWS liquidates. You're short a 20 lot? Not to scare you, but there was a lot of optimism associated with the possible S&P addition. I don't think it will open above 380, but the vol is still stupid high, so I'd try to sell a synthetic straddle at say the 430 strike and ride it out.
Say you're long 2K from 405. You short 40 of the 430 calls out to Sep18 for perhaps $18 on Monday. You'd be short the (synthetic) 430 straddle for a 61 cost basis. Terminal downside BE is 469 on shares and the ATM straddle is worth 73 at Friday's close. In a week the ATM straddle is worth <55 at neutrality. You hold it on a strike touch and then cover the wad or fly it off with wings.
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Monday will probably be another risk off day imo. Cryptos are down big time over weekend so far...
No, he's got a an additional day of lost decay. You really think futures are going to open higher on Sunday?