https://preview.redd.it/3smgimfyabr91.jpg?auto=webp&s=b3e0632ca9f6eaee2b6e0d9a00302630dccc70fe
So here’s the deal. I had some options that expired in the money on Friday. I had 1 $360 SPY put and 5 SQQQ $59 calls that all got assigned. It now appears I essentially have a huge bet against the US economy in the form of a $35k short position on the $SPY and a $30k inverse leverage position with $SQQQ.
Keep in mind this is a Roth IRA. Will TD auto close the positions at close price on Friday? Will they auto close at open price on Monday? If credit suisse collapses and the market gaps down in pre-market do I get to keep the gains at open? If they don’t force close and just give me a 5 day margin call can I ride this leveraged position all the way to Valhalla? If the fed u-turns and spy and qqq rocket do I get liquidated?
(Also just ignore my giant meme bags behind the curtain. For clarity I have put 12k cash into this IRA over the last 17 months and was at $33k portfolio value at close on Friday so I appear to be doing better than most of you regards I see on here.)
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Since you’re assigned and own the shares, you don’t have to wait until 9:30 to manage your position. Pay close attention to the premarket and maybe exit out of 50-75% of your position before the open if you are going to let some ride.
Yea this is making sense now, you had a put that got exercised and then had 5 calls exercised. How you ask? Well when your SPY put got exercised you got 35k of credit and then when the brokerage saw that and saw your 5 calls they exercised them as well. I would recommend selling enough of your SQQQ shares to close out your SPY position to prevent a margin call and then let the remaining SQQQ shares ride.
Not financial advice just what I would do
You should probably read into how options work, then post loss porn when there’s a bounce on Monday.
When you get margin called they’ll close out whatever they feel like but you’ll probably get about an hour to fix it yourself before they decide to get their money back
Just ask for refund, they give will understand since it was an accident
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RemindMe! 27 hours
This is amazing. So many people playing options and almost no one has a clue what is happening when they get exercised…
Update from OP? Still with us.
Sell all your long positions and short for as long as you can before they decide to sell any for you. This will provide you the biggest returns if we continue dropping which we most likely are with the collapse of CS
This is a good example of the scary stuff that happens when you trade options without understanding all possible scenarios. I’ve done this (not in an IRA), but the first time you are assigned, it will stress you out if you haven’t considered that possibility. I’ve also only been assigned early. I’ve never been unintentionally assigned at expiration.
Exit the position as soon as reasonably possible. Here you have two positions that are nearly delta neutral, and appear to actually be up on both, so close it for a profit if possible and consider it a scary lesson learned. Or a small loss if needed. Do not hold the positions with some grandiose hope.
Dude yolo is for options not buying/shorting stocks, I demand justice by then mods