WSBers playing with fire and getting burned: NKLA hard to borrow early assignments on call spreads

[blazespinnaker]

https://www.reddit.com/r/path%3D%252Fr%252Fwallstreetbets%252Fcomments%252Fhem02i%252F

"I had NKLA credit spreads, where the short legs got assigned. Exercised the long legs the next day immediately but they wouldn't settle until after the weekend. I still got charged 360% interest for 3 days. My account value is only 5K lol. I'm done."

Etrade should eat this, IMHO.

rule #1: Avoid anything on reg sho unless you really know what you're doing.

 

[newwurldmn]

Why should etrade eat this?

 

[Real Money]

LOL

 

[FSU]

TD/TOS just banned any opening spread that includes short calls in NKLA.

 

[blazespinnaker]

Why should etrade eat this?

It's an opinion, you're welcome to your own!

 

[S2007S]

I'm probably wrong on this but how is there a $10k interest charge for 3 days?

Isn't this interest divided by 360 and multiplied by 3 days??

 

[Cuddles]

Etrade should eat this, IMHO.

rule #1: Avoid anything on reg sho unless you really know what you're doing.

Are you satoshi_notmemoto?

 

[blazespinnaker]

Are you satoshi_notmemoto?

No, are you?

 

[FSU]

Assuming the stock at 65, that's 65 x 3.60 or $234 per year (per share) divided by 365 so .64 per day or $64 per 100 shares (or one assigned call). So that $192 for 3 days. So if he was assigned on 52 calls it would be about $10,000.

Note that the short rate now is over 800%

 

[newwurldmn]

It's an opinion, you're welcome to your own!

What’s your reasoning for your opinion?