jsd501 7:10 am on Tuesday, March 12, 2019

SFIX

I have an order in to unwind the double calendar but there is no fill yet. Just no liquidity today. This was just a test trade for me so not any real risk on this trade.

geewhiz112 7:15 am on Tuesday, March 12, 2019

I closed out the short call for 9.00 A little concerned at the open spurt. Stock now retreating.
jsd501 7:43 am on Tuesday, March 12, 2019

I legged out for a very small loss but it was a learning experience.
Jeff 10:13 am on Tuesday, March 12, 2019

This was a long shot, only taken because of the cheap price. If you’re worried about early assignment be sure to close the calls today. I’ll probably hold at least until. tomorrow in case we get some retracement.
- Jeff 10:13 am on Tuesday, March 12, 2019
  
  Wish I’d done the long straddle but wasn’t comfortable with the risk on such a new issue.
- MikeL 10:22 am on Tuesday, March 12, 2019
  
  Just want to make sure I am not missing something about risk.
  
  Jeff, are you closing the short calls due to the cost of assignment?
  In IB there is no fee for assignment, so there should be no risk.
  If assigned on short calls, just execute the long calls.
  - Jeff 10:25 am on Tuesday, March 12, 2019
    
    Not because of the cost, but because I don’t want the short shares. If I am assigned I’ll do what you suggest, but prefer not to deal with it.
- jsd501 10:41 am on Tuesday, March 12, 2019
  
  I would have thought that with such a large move we should have had a profit since we were long the 2nd week and short the first week.
  - Jeff 11:24 am on Tuesday, March 12, 2019
    
    No, the large moves are what kill these. Deep ITM options are almost 100% intrinsic value so time and volatility don’t make enough of a difference.
    - jsd501 11:32 am on Tuesday, March 12, 2019
      
      Thanks, I will stick with writing puts and covered calls.
      - Jeff 11:35 am on Tuesday, March 12, 2019
        
        Give up after one try? If I had known that I would have told you to follow me on a much better probability trade. I’m putting together a webinar where I go through the strategy; I’m making the best profits off the more expensive stocks. One win with them wipes out about 5 losses on these cheapies.
        
        jsd501 11:39 am on Tuesday, March 12, 2019
        
        I will follow you and see how it goes.
        
        fuzzballl 11:43 am on Tuesday, March 12, 2019
        
        That’s better than Whiz…he needs 5 wins to cover one loss. LOL Thanks for the posts!