TLT

#PerpetualRollingStrangles – Interesting morning in this thing. I had been hit with early exercises numerous times on DITM short calls as early as 18 days out. Because of this I had been rolling these at about the 21 day mark back out to 45 or 50 days. Well…today set a record. Every single short call I had was exercised….

Sep 22 122 strike (21 days early)
Sep 22 123 strike (21 days early)
Oct 20 121 strike (an incredible 49 days early!)

Luckily the stock is down big today so was able to cover it at a pretty good price. Then re-loaded all the short calls way out in November.

Sold TLT NOV 17 2017 121.0 Calls @ 6.50
Sold TLT NOV 17 2017 123.0 Calls @ 4.85

So…here’s what happened:

https://tickertape.tdameritrade.com/trading/2017/05/analyzing-dividend-risk-61479

My fault…was vaguely aware this was an issue but wasn’t sure of all the risks involved. Luckily with the short stock carrying more negative deltas than the short calls the whole thing should be net positive in spite of the dividend. Lesson learned but still a big fan of the ticker…