My naked SPY calls went deep in the money. but still made BBQ and had a good day

K

KINGOFSHORTS

Thanks to hedging. Had short SPY 415 puts I wrote and collected 7.72 a contract.
It looked like I would be getting some stock delivered so I wrote naked calls to flatten my deltas a bit. Markets plunged as expected and I locked in the 415 long calls for 22-30 cents as a hedge. Both contracts expiring this friday.

Of course mega upswing above my expectations happen today and my long calls go deep in the money. no big deal Just did my usual BBQ etc, enjoyed the day and late evening went and hit that exercise option emergency parachute button and got my SPY shares immediately delivered to the account. first time I have ever had to exercise a long option.

Anyhow always hedge your positions because an unexpected wave could creep up and slam the ship. Too many people get complacent and end up blowing out the account.
 
Your post is confusing at best.You were short the 415 puts at 7.72,market sells off and you hedge with some naked calls to offset your Delta " a bit"???

You are short .8 Delta puts and the market plunges as expected??

Then the market reverses,and,somehow you buy back all your short calls,and supposedly go long them and sell stock against the auto exercise...

All this while grilling burgers???

That's one helluva method of Delta Hedging..



KINGOFSHORTS said:
Thanks to hedging. Had short SPY 415 puts I wrote and collected 7.72 a contract.
It looked like I would be getting some stock delivered so I wrote naked calls to flatten my deltas a bit. Markets plunged as expected and I locked in the 415 long calls for 22-30 cents as a hedge. Both contracts expiring this friday.

Of course mega upswing above my expectations happen today and my long calls go deep in the money. no big deal Just did my usual BBQ etc, enjoyed the day and late evening went and hit that exercise option emergency parachute button and got my SPY shares immediately delivered to the account. first time I have ever had to exercise a long option.

Anyhow always hedge your positions because an unexpected wave could creep up and slam the ship. Too many people get complacent and end up blowing out the account.
More...
 
taowave said:
Your post is confusing at best.You were short the 415 puts at 7.72,market sells off and you hedge with some naked calls to offset your Delta " a bit"???

You are short .8 Delta puts and the market plunges as expected??

Then the market reverses,and,somehow you buy back all your short calls,and supposedly go long them and sell stock against the auto exercise...

All this while grilling burgers???

That's one helluva method of Delta Hedging..
More...

he thinks he’s warren buffet who negotiated to buy 8percent of Goldman Sachs through warrants and then drank a cherry coke.
 
taowave said:
Your post is confusing at best.You were short the 415 puts at 7.72,market sells off and you hedge with some naked calls to offset your Delta " a bit"???

You are short .8 Delta puts and the market plunges as expected??

Then the market reverses,and,somehow you buy back all your short calls,and supposedly go long them and sell stock against the auto exercise...

All this while grilling burgers???

That's one helluva method of Delta Hedging..
More...
Sounds like the burgers weren't the only thing that got BBQ'd...

Also, Nasdaq:BBQ Holdings got quite the boost from CV, eh? Maybe OP could sell naked short puts on them?

Like Warren says, trade what you know! XD
 
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