IMPORTANT NOTE TO NEW (and experienced) OPTIONS TRADERS:
Close out all winning In the Money or Close To The Money Options Positions That Expire Today.
If you have a completely in-the-money-on-both-legs Vertical DO NOT let it go into expiration assuming it will auto-exercise. Pay 0.01-0.03 to go home flat. If you have an options position that is a little bit out of the money and it looks like it is going to zero sell it for 0.01 or even 0.00 to get out of the position.
Not exercising and assuming everything will auto-ex is the biggest source of trading group wipe-outs.
Hey everyone, a couple of quick addendums to this post:
1) It looks like I made a mistake with the NIO spread expiring today. Some sites were indicating that it was releasing earnings today, but it looks like today's filing was its 2022 annual report, which doesn't have a lot of new earnings info because the Q4 2022 earnings were released separately in March. So our NIO spread expiring today is probably going to be a bust. Sorry about that. The other NIO spread expires after NIO's scheduled Q1 earnings so, we should get an earnings move one way or another with that one, and I remain bearish on NIO and will continue to hold the June expiration spread.
2) David Jannello writes nearby that we should give up $0.01-$0.03 on our spreads to close them out before expiration. He runs a company that specializes in spreads, so I will defer to him on this and take his advice, and suggest you do the same.
IMPORTANT NOTE TO NEW (and experienced) OPTIONS TRADERS:
Close out all winning In the Money or Close To The Money Options Positions That Expire Today.
If you have a completely in-the-money-on-both-legs Vertical DO NOT let it go into expiration assuming it will auto-exercise. Pay 0.01-0.03 to go home flat. If you have an options position that is a little bit out of the money and it looks like it is going to zero sell it for 0.01 or even 0.00 to get out of the position.
Not exercising and assuming everything will auto-ex is the biggest source of trading group wipe-outs.
Hey everyone, a couple of quick addendums to this post:
1) It looks like I made a mistake with the NIO spread expiring today. Some sites were indicating that it was releasing earnings today, but it looks like today's filing was its 2022 annual report, which doesn't have a lot of new earnings info because the Q4 2022 earnings were released separately in March. So our NIO spread expiring today is probably going to be a bust. Sorry about that. The other NIO spread expires after NIO's scheduled Q1 earnings so, we should get an earnings move one way or another with that one, and I remain bearish on NIO and will continue to hold the June expiration spread.
2) David Jannello writes nearby that we should give up $0.01-$0.03 on our spreads to close them out before expiration. He runs a company that specializes in spreads, so I will defer to him on this and take his advice, and suggest you do the same.
I ended up with the June expire and they are now:
My NIO $7.50 buy is down -2.87% & -$16.79 with a cost basis of $586.79, current value is $570.00
My NIO $5 Sell is down -32.10% & -$24.30 with a cost basis of $75.00, current value is $100.00
Its been dropping nicely last couple months, so any feedback is appreciated!
STC SNAP 9-50-10.50 Put Vertical @ 0.97 exch EDGX
STC NIO 8.00 Put @0.20 exch BOX
I did not see this until trading was closed, is it ok to get in this morning?
David first lap at this...
Strategy: Spread
Leg 1: Buy 15 contracts Apr 28 @7.5 Put
Leg 2: Expy Apr 28 Strike 6.5 Puts
Order Type:?
If I select "Even," it says max gain is 1500, Est Max loss Zero
Net Debit and Net Credit require a price to execute the order. Any advice on what to do?