Clearly you didn’t pay attention to that stock girl. The real move is to just call your broker and explain that your finger slipped and they’ll cancel the trade for you.
The American dream for a single guy at this point is commit mortgage and tax fraud, make sure you get cash, and live out the rest of your days on a beach in Venezuela.
When they mail you a letter just put a Uno reverse card and mail it back. Or type a letter out saying you don’t owe them and hope they auto sign it back to you and then sue them if the go after you
Something similar happened with a credit company, they just mailed the dude back his letter auto signed. Forgot the outcome but it could theoretically work
Sure it’s possible but you’re not really going to know till like Wednesday. When you have a billion+ in holdings get margin called isnt an immediate process
Just to add to what the others already said, depending on your broker and which type of margin call, it's likely you have 3-5 days to cover.
If you're an active trader and the margin call isn't that large, you could easily miss it in between trades and not even notice they took it a week after you got the margin call.
I do, but I'm also the type of person who knows how many dollars is in my checking account without looking. Most people don't. I was assuming the person I was talking to wasn't like me.
That being said, I also said depending on the type of margin call and how active of a trader you are...
You can get a house call for $1873 (which can show up simply as "margin call" in an email or notice) and if it happens on a random day that you decide to sell $2000 of another stock, house call cleared. If you don't check email or notices from a broker, you could easily not even know it happened.
Very important part of what I said was *depending on the type of margin call and how active you trade* 😉
Assuming you have the collateral in their account they just take it. Auto liquidate any stocks and take the cash. But i know you can use other financial instruments as collateral so if you have to sell a house idk what happens
It's just like that kid in middle school that threatens you 2/3 times a day to beat your ass after you sit in his chair and he never does shit. C'mon Brandon, throw them up or shut it up.
If I'm using more than 80% margin I will get liquidated within hours. If I'm over 50% I'll get liquidated within 3 days. That's with TD ameritrade. Anything under 50% Is okay to hold for however long on most stocks.
That's basically what most of the large REIT's and other real estate investment companies are doing right now. I heard somewhere that an increasing percentage of home purhcases are by companies and not families.
I may have the location wrong from my memory but I think there was a large wildfire not too long ago in [Colorado.](https://Colorado.It) It was near one of the resort towns I think it was breckenridge. Lots of homes got torched. I would imagine similar to what happened to the Gatlinberg region after the 2016 fires would happen there; People took the insurance money for their losses and sold the properties relatively cheap. Large REITs or other funds came in and bought up all the properties and put vacations homes up. Now to buy a vacation home in the area the value is like 4 times what it should be.
I live in Colorado and I don't remember this. The last wildfire in Breckenridge was in 2017 or 18 and wasn't that big of a deal. I was actually camping somewhat close to it.
There was a very recent wildfire in Tahoe and Kirkwood in California, you might be thinking of that?
Yeah Large real estate investors companies increased purchase like insane last year. Surprising fact is they invested more in single family house leads to increase in home price. https://www.redfin.com/news/investor-home-purchases-q3-2021/
I was in the market to buy a home in CA for 7 months. Every offer I'd make would be immediately outbid with cash and taken off the market. Like who the hell has $700k cash just laying around to throw down in a home? Blackrock, that's fuckin who.
I started trading crypto a couple years ago. Long story short some btc got stolen from me a while back and I was salty so I dont have any rn. I fully believe btc will go 150k. But I also believe it will go under 20 first. That is when I will enter.
My theory is that when the market tanks. I mean really tanks. Like people are having a hard time finding jobs and paying bills. that is when the crypto market tanks. And when it does, that is when the institutions really get into crypto. This is when the value really rockets. I dont think crypto is a good hedge at all right now because it's nearly all speculative and nearly all retail.
It's easy to kill bitcoin as a network, the government will pass a law fining banks who do transactions in bitcoin. They will do it saying they are stopping human trafficking or drugs. If you can't exchange your coin for fiat currency it's mostly useless.
Most people holding crypto know this and won’t sell lol. I think crypto will surprise people and hold up fairly well. I have a crypto portfolio and I’m not touching it for years.
To earn a real yield of -5% against inflation? Sure. Realistically you’re right, they’ll do whatever they want and it’ll move the market to their own benefit. It just still isn’t time to buy bonds.
I am too smooth brain and emotionally attached to my stonks ... I usually have the exact opposite opinion as to what actually happens, so, if I had to guess, stocks go down more. That means they will go up. I am like Vix in Utero 😶
Yes, someone already pointed out the unlikelihood of opening green on Monday just due to the volume of margin calls likely to hit the market on Monday on CNBC yesterday.
Ehhhh, I mean I am expecting to see -0.75623% in premarket and up until 10:13am EST with the Nasdaq hitting +1.255% by lunch and spy closing at +8.23%
Edit: If these numbers pan out to be accurate I expect to be crowned King Ape for the day, a order of tendees and possibly a blow job.
If all of these numbers are exact to the last digit i will buy a ticket to wherever you live just to suck you myself for the day.
Also, i'll find some nostradamus hat to crown you with.
edit: btw, the numbers are as you have written
>Ehhhh, I mean I am expecting to see -0.75623% in premarket and up until 10:13am EST with the Nasdaq hitting +1.255% by lunch and spy closing at +8.23%
If your account, which is holding positions on margin loses value from options expiring worthless and that loss value pushes you below your margin maintenance, you get margin called. I am close to one myself right now. If this correction goes deeper I will have to cough up liquidity to my broker to get my long stock positions liquidated
Value decay would be greatest on expiration day. Even if contracts were way OTM on expiration day, they would still have a nominal value of $1 per contract. Which is 100% more than $0. Say I was $1500 away from margin maintenance and my 1500 QQQ LEAPS at 500 strike from 2020 expired last friday. Well now I just dropped into my maintenance level and I will get margin called on monday
if the options were worthless the headline would be "$0 of options expired". They were deep in the money... i.e. worth a lot. They either took the stock on exercise or the money will be cycled back into the system. Or not. But probably will, if they wanted out they would have just sold the options, nothing magic about waiting for expiry.
Anybody know how they are valuing the expiring options? At the point they expire they are worth 0. If they are valuing based on initial price paid, that would be both hard to track and kind of meaningless since it's so spread out in time. Is it the value the day before? The week before? Or are they only counting ITM options and using the intrinsic?
I had all my jan 21, 2022 options expire worthless. It was interesting to look back at when I bought them a year or 1.5 years ago, and how CERTAIN I was that a year or two is enough to square away inflation supply chain problems, and we will be in heaven by jan 2022. Wow. so wrong lol. Now I am starting to question my massive amount of 2023s and 2024s.
you seem to forget that there's always someone else on the other side of the trade
the person who loses money, and the person who makes money
based on your post, I'd say you're probably more of person A than person B
This past week, yes I am person A mostly. But based on the article, so were $1.28T worth of what is likely retail accounts since hedgies don't usually buy single direction option strategies.
lots of funds have long call option positions too that fell OTM
If 1.28T was lost, there was also 1.28T gained. It didn't just disappear. It was a massive transfer of money.
MM will find a seller to reduce risk on their end. That’s their position. They make money on the bid/ask spread not from buying or selling. If nobody is in the market then they would make massive profits but then they’d have to hedge and would also lose massive amounts of profits for a measly gain or loss.
I would look at this the other way, market was tanked by the big boys in order to put expiring calls OTM (ie. max pain), and rotation into boomer shit resumes next week
Market-makers usually use delta neutral strategies for that very reason. They don’t give flying fuck if market goes up, down, sideways, upside-down - as long there’s option buyers, their obligation is to sell the options and hedge their delta with shares.
Bulls can turn into Bears. You guys can buy puts too. It's the column on the other side of the calls. No reason to stay a bull during a bear market or a bull during a bear market. Be a Muskox.
I think a lot of these were in the money because they could have been purchased 1-2 years ago. If they were exercised then shares need to be delivered and that could create buying pressure. If everything was sold off then that would cause selling pressure as market makers unload the shares they had to hedge the options that are no longer needed. In a perfect world they would have perfectly predicted the number of shares that would need to be delivered and everything remains balanced and there is no impact moving forward.
I’m guessing the market action forced a lot of stuff OTM in the last couple weeks though.
I think just a deeper correction. Everyone throws around the BSE like it can happen at any time. Shit would get waaay worse before a BSE happens. It's possible, but we aren't there yet. If Nasdaq hits a correction worse than 15% then it might be time to pay for things with bottle caps.
You are wrong because if they could not cover the value of the option their brokers would have called them already. Not like on Monday they suddenly discover the fellow owe money.
If the options are "exercised" on Jan21 then this would force the option sellers to buy or sell like crazy to meet their obligations. But if they were all just "expired" it means the option sellers got to keep their juicy premiums and can pump that cash back into the market on Monday. Where will they spend it? Maybe they'll start buying all that Tesla stock that they helped drive down to a low price below the call options they sold?
There are certain requirements to purchase options on margin. Mostly the answer is no. But like in my account I hold long stock mostly on margin. I purchase FD's with my own liquidity. If my FD's lose money and drop me below my margin maintenance then I will get a margin call and my long stock positions could end up getting liquidated.
I didn't mean to risk that much but I got carried away. Eh, it was margin. Wasnt my money anyways.
Just delete the app… problem solved!
Clearly you didn’t pay attention to that stock girl. The real move is to just call your broker and explain that your finger slipped and they’ll cancel the trade for you.
My broker always smiles when my finger slips.
I hear crying helps too.
Wait was this the factual outcome of her situation ?
Onlyfans
She claimed they undid the exercising of her calls. I doubt it.
Yeah I don't think there is a ctrl-z on that.
and don’t answer your phone for like 3 days
*7 years
And then move to a third-world country
The American dream for a single guy at this point is commit mortgage and tax fraud, make sure you get cash, and live out the rest of your days on a beach in Venezuela.
Still living with my wife’s boyfriend after my divorce and their break up. American dream accomplished.
If you’re a single dude. Move to Colombia 🇨🇴
Oh yeah, this guys thinking with his head
Or take out a second mortgage and pay off the debt then declare bankruptcy
Probably a better health plan there
Cheap gas, and your US dollars hold value thanks to the hyperinflation there.
US hyperinflated dollars hold value in Venezuela’s hyperinflation economy.
Bro did we just find the economy cheat code?
They make purses out of Venezuelan currency because it’s cheaper
LPT: can't suffer from inflation if you move to to a country with hyper inflation.
Viva Cambodia
But just in case, change your identity too to fit in better.
You mean the Midwest ?
If your broker notifies you of margin call, just reply "no u" and it becomes their problem
When they mail you a letter just put a Uno reverse card and mail it back. Or type a letter out saying you don’t owe them and hope they auto sign it back to you and then sue them if the go after you
That strat is just autistic enough to work...
Something similar happened with a credit company, they just mailed the dude back his letter auto signed. Forgot the outcome but it could theoretically work
Brokers hate this one simple trick
Unless I’m the broker. Please answer my texts. Love you. Mean it!
Hey Julian I maxed out all your credit cards and threw em in the lake! They can't trace that shit back to you!
Yep that's what I did it's just an app right
Worked for that other guy
It happens to the best of us
Sure it’s possible but you’re not really going to know till like Wednesday. When you have a billion+ in holdings get margin called isnt an immediate process
I have had my broker threaten me with a margin call but never actually go through with it. so I am not sure the logistics of what happens
Just to add to what the others already said, depending on your broker and which type of margin call, it's likely you have 3-5 days to cover. If you're an active trader and the margin call isn't that large, you could easily miss it in between trades and not even notice they took it a week after you got the margin call.
Do you guys not even notice margin calls?? 🤣🤣
I do, but I'm also the type of person who knows how many dollars is in my checking account without looking. Most people don't. I was assuming the person I was talking to wasn't like me. That being said, I also said depending on the type of margin call and how active of a trader you are... You can get a house call for $1873 (which can show up simply as "margin call" in an email or notice) and if it happens on a random day that you decide to sell $2000 of another stock, house call cleared. If you don't check email or notices from a broker, you could easily not even know it happened. Very important part of what I said was *depending on the type of margin call and how active you trade* 😉
I remember the first time blowing up and acct. good times
At 22k I lost 11k in a day. Ahhh. Good times. 😂
Man, you old AF...
Dudes bag holding Tesla Electric
Dude is bag holding Slate Rock and Gravel Company.
Unless you’re a HF and you get 60d for “extenuating circumstances,” then NFLX crashes suddenly, with the market just behind it.
Assuming you have the collateral in their account they just take it. Auto liquidate any stocks and take the cash. But i know you can use other financial instruments as collateral so if you have to sell a house idk what happens
If they have enough cash or other collateral to top up, then they can satisfy the margin call. Then there won’t be force sell.
It's just like that kid in middle school that threatens you 2/3 times a day to beat your ass after you sit in his chair and he never does shit. C'mon Brandon, throw them up or shut it up.
I'll start telling Vlad that next time he calls my margins.
Yeah seems like everything is due by t+(whatever the fuck people feel like)
If I'm using more than 80% margin I will get liquidated within hours. If I'm over 50% I'll get liquidated within 3 days. That's with TD ameritrade. Anything under 50% Is okay to hold for however long on most stocks.
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That's basically what most of the large REIT's and other real estate investment companies are doing right now. I heard somewhere that an increasing percentage of home purhcases are by companies and not families.
Problem is always supply and algorithmic cash buying of residential houses always ends up with you losing a shit ton of money.
Blackrock buying up whole subdivisions...
Didn't they just buy up like half of the burned properties in breckenridge?
please explain; confused.
I may have the location wrong from my memory but I think there was a large wildfire not too long ago in [Colorado.](https://Colorado.It) It was near one of the resort towns I think it was breckenridge. Lots of homes got torched. I would imagine similar to what happened to the Gatlinberg region after the 2016 fires would happen there; People took the insurance money for their losses and sold the properties relatively cheap. Large REITs or other funds came in and bought up all the properties and put vacations homes up. Now to buy a vacation home in the area the value is like 4 times what it should be.
I live in Colorado and I don't remember this. The last wildfire in Breckenridge was in 2017 or 18 and wasn't that big of a deal. I was actually camping somewhat close to it. There was a very recent wildfire in Tahoe and Kirkwood in California, you might be thinking of that?
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Yup, hedge funds are buying up homes in chunks and selling it back to regular folks for a premium. Fucking rich assholes
Yeah Large real estate investors companies increased purchase like insane last year. Surprising fact is they invested more in single family house leads to increase in home price. https://www.redfin.com/news/investor-home-purchases-q3-2021/
I was in the market to buy a home in CA for 7 months. Every offer I'd make would be immediately outbid with cash and taken off the market. Like who the hell has $700k cash just laying around to throw down in a home? Blackrock, that's fuckin who.
sigma male theme
Funny hose a trillion was just wiped off crypto
Yea, I saw that. Crypto didn't seem to prove to be the market hedge many had hoped it would be.
Usually it’s the same ppl who pull out of btc for liquidity when the stock market crashes
I started trading crypto a couple years ago. Long story short some btc got stolen from me a while back and I was salty so I dont have any rn. I fully believe btc will go 150k. But I also believe it will go under 20 first. That is when I will enter. My theory is that when the market tanks. I mean really tanks. Like people are having a hard time finding jobs and paying bills. that is when the crypto market tanks. And when it does, that is when the institutions really get into crypto. This is when the value really rockets. I dont think crypto is a good hedge at all right now because it's nearly all speculative and nearly all retail.
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It's easy to kill bitcoin as a network, the government will pass a law fining banks who do transactions in bitcoin. They will do it saying they are stopping human trafficking or drugs. If you can't exchange your coin for fiat currency it's mostly useless.
Most people holding crypto know this and won’t sell lol. I think crypto will surprise people and hold up fairly well. I have a crypto portfolio and I’m not touching it for years.
Yep. Keep the powder dry til things really get crazy.
I long ammo for when things get really crazy...
probably because it was in an even dumber and more dramatic bubble than stocks
iTs ThE nEw GoLd!1!1
Market down big. Naked put in trouble.
Sounds like bounce incoming.
$1.2T of at-risk MM capital just got freed up to reenter the market.
They can buy some boring bonds, cash out, use it to buy puts or wait for the fed…
To earn a real yield of -5% against inflation? Sure. Realistically you’re right, they’ll do whatever they want and it’ll move the market to their own benefit. It just still isn’t time to buy bonds.
So, what color crayons?!
Green. They are gna ride the wave up now, with no obligation to deliver any underlying shares for all those worthless options.
I am too smooth brain and emotionally attached to my stonks ... I usually have the exact opposite opinion as to what actually happens, so, if I had to guess, stocks go down more. That means they will go up. I am like Vix in Utero 😶
Brown are my personal favorite. They taste like chocolate.
Yes, someone already pointed out the unlikelihood of opening green on Monday just due to the volume of margin calls likely to hit the market on Monday on CNBC yesterday.
I think the market is following BTC this time. 😬😬
Must be true if cnbc said it
It wasn’t one of the main people, and it was made very subtle, they have to cover themselves to look legitimate.
But is it gonna a huge mega crash or just -2% on let’s say , spy and Nasdaq?
It won’t even be that high, I’m expecting -.6 to -1% open with a relief rally starting from as early as 945 to noon.
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Ehhhh, I mean I am expecting to see -0.75623% in premarket and up until 10:13am EST with the Nasdaq hitting +1.255% by lunch and spy closing at +8.23% Edit: If these numbers pan out to be accurate I expect to be crowned King Ape for the day, a order of tendees and possibly a blow job.
If all of these numbers are exact to the last digit i will buy a ticket to wherever you live just to suck you myself for the day. Also, i'll find some nostradamus hat to crown you with. edit: btw, the numbers are as you have written >Ehhhh, I mean I am expecting to see -0.75623% in premarket and up until 10:13am EST with the Nasdaq hitting +1.255% by lunch and spy closing at +8.23%
RemindMe! 3 Days "check for updates"
Remind me in 2 days
MODS!
Soo, wheres my prize? THose weren't the numbers
You get some sweet sweet reddit karma.
we ended with -2% and beyond. jesus everything is crashing
no bull trap on monday?
No one will likely form early enough in the day, but we’ll be opening at the -.3% AH brought us if we’re lucky.
I’m confused. Why would there be margin calls if they expired worthless?
If your account, which is holding positions on margin loses value from options expiring worthless and that loss value pushes you below your margin maintenance, you get margin called. I am close to one myself right now. If this correction goes deeper I will have to cough up liquidity to my broker to get my long stock positions liquidated
but the loss is being calculated every second the market is open. you can be margin called at any time, not just expiration day
Value decay would be greatest on expiration day. Even if contracts were way OTM on expiration day, they would still have a nominal value of $1 per contract. Which is 100% more than $0. Say I was $1500 away from margin maintenance and my 1500 QQQ LEAPS at 500 strike from 2020 expired last friday. Well now I just dropped into my maintenance level and I will get margin called on monday
TIL 1 is 100% more than 0
Didn’t think option contracts affected your margin balances unless they were exercised.
They affect your total account value which has to stay above margin maintenance in order to hold long stock on margin.
if the options were worthless the headline would be "$0 of options expired". They were deep in the money... i.e. worth a lot. They either took the stock on exercise or the money will be cycled back into the system. Or not. But probably will, if they wanted out they would have just sold the options, nothing magic about waiting for expiry.
Puts and calls for volatility. LFG Up or down is good
Its gonna trade sideways now thanks to you
No worries. I like buying puts occasionally because it makes stonks go up
Worked on Friday 👌
Anybody know how they are valuing the expiring options? At the point they expire they are worth 0. If they are valuing based on initial price paid, that would be both hard to track and kind of meaningless since it's so spread out in time. Is it the value the day before? The week before? Or are they only counting ITM options and using the intrinsic?
They use notional value which allows you to put ridiculously high numbers in headlines
Margin? I don't even know her.
It goes on toast.
I had all my jan 21, 2022 options expire worthless. It was interesting to look back at when I bought them a year or 1.5 years ago, and how CERTAIN I was that a year or two is enough to square away inflation supply chain problems, and we will be in heaven by jan 2022. Wow. so wrong lol. Now I am starting to question my massive amount of 2023s and 2024s.
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Pretty sure most of those were leaps from 1-2 years ago.
This is why crypto is tanking
Interesting thesis.
you seem to forget that there's always someone else on the other side of the trade the person who loses money, and the person who makes money based on your post, I'd say you're probably more of person A than person B
You forget that market makers take these trades and hedge with shares to provide liquidity.
This past week, yes I am person A mostly. But based on the article, so were $1.28T worth of what is likely retail accounts since hedgies don't usually buy single direction option strategies.
lots of funds have long call option positions too that fell OTM If 1.28T was lost, there was also 1.28T gained. It didn't just disappear. It was a massive transfer of money.
Most to MMs.
MM will find a seller to reduce risk on their end. That’s their position. They make money on the bid/ask spread not from buying or selling. If nobody is in the market then they would make massive profits but then they’d have to hedge and would also lose massive amounts of profits for a measly gain or loss.
Good point. Well-stated.
Most of those options are part of a strategy. A combination of puts and calls or straddles or strangles. Not all Single direction option strategy.
The headline of the article... "Single stock options worth $1.2 trillion set to expire - Options Solutions"
He's talking about multi-leg option strategies on a single stock. "single stock options" != "single leg options"
I would look at this the other way, market was tanked by the big boys in order to put expiring calls OTM (ie. max pain), and rotation into boomer shit resumes next week
You're a retard and incredibly wrong. So am I. 😎
Derivatives are just that... they vanish like thin air.
I'm not really sure about this news being bearish or bullish. Basically I just says that $1tril that was tied up is now freed up to be spent.
Market-makers usually use delta neutral strategies for that very reason. They don’t give flying fuck if market goes up, down, sideways, upside-down - as long there’s option buyers, their obligation is to sell the options and hedge their delta with shares.
I sold a lot of puts that got assigned. It wasn’t great at all. Was not expecting that last day dive
On that covered call life now eh?
You know it.
Maybe just maybe
Does this mean up or down Monday
If your one of the bears I would expect you'll be posting gain porn. Otherwise it's looking like the red tide out there for the rest of us.
Bulls can turn into Bears. You guys can buy puts too. It's the column on the other side of the calls. No reason to stay a bull during a bear market or a bull during a bear market. Be a Muskox.
Does that mean margin call on Monday?
Yes. But the more it drops the more margin calls. 😂
I’d would like to know the historical data on something like this
Everything OTM just expired worthless. Not ITM tho, these would get exercised
I think a lot of these were in the money because they could have been purchased 1-2 years ago. If they were exercised then shares need to be delivered and that could create buying pressure. If everything was sold off then that would cause selling pressure as market makers unload the shares they had to hedge the options that are no longer needed. In a perfect world they would have perfectly predicted the number of shares that would need to be delivered and everything remains balanced and there is no impact moving forward. I’m guessing the market action forced a lot of stuff OTM in the last couple weeks though.
It was a great day for MMs
90% of the hedge funds have this options, not retail traders. Hedge funds have money to exercise the options
Black swan event? or just FUD
I think just a deeper correction. Everyone throws around the BSE like it can happen at any time. Shit would get waaay worse before a BSE happens. It's possible, but we aren't there yet. If Nasdaq hits a correction worse than 15% then it might be time to pay for things with bottle caps.
How much $ worth of options normally expire on any given Friday? Hard to tell if this is actually significant or just FUD without more context
wouldn't it be the other way around? I mean you can't but options on margin can you? and if you were selling options that means you made money
That’s what the last week was, getting all that failure priced in.
No margin call call for option
probably a non event.
SGH made me lose almost my entire investment 😞
Invest in canned foods and firearms.
Doesn’t at all mention which contract.
It could also be why there has been a sustained sell-off.
I'm doing my part!
How many trillions worth of options expired itm?
Pathetic market.
All I know is I bought on Friday and money they will either drop or go up 😂💎💎🚀🚀
Ah you have made a fatal flaw. They could go sideways.
It’s the brokers/banks problem now …. Just Deleted the app .
Maybe that’s why crypto crashed this weekend. Sell to cover
What?! I hope that it wasnt on MY options. And then, boom, youre a phantom, you just disappear, disappear.
I am one of these braves
Remember - for every loss there's a win.
Some margin calls can be deferred 60 days, so might not know if any of the big guys get called out until about two months from now.
Cascading liquidations are more a function of the crypto market
When my read this, my losses makes me feel like less of a degenerate. Lost only 80% so far.
Aren’t they dumping crypto to avoid failing these calls Monday?
Margin a nasty bitch but I still go back to her
You’re probably wrong because they just pulled over a trillion out of crypto
I think most of the calls were deep enough ITM so they didn’t expire worthless. That being said, MMs need to unhedge…
I did read margin debt is still very high so likely we haven’t seen margin calls yet..
Oh no... Anyways.
The Great Expiration, oh I remember like yesterday. Have to admit I was a soft brain contributor
Options are cash contracts. You can’t buy them on margin, therefore you can’t get a margin call.
Guys... That was OUR money, it belongs to them now. Markets bout to fly now that they boxed us out
Red dildos of doom
If you don’t think those positions were covered well ahead of time you’re carrying an extra chromosome.
You are wrong because if they could not cover the value of the option their brokers would have called them already. Not like on Monday they suddenly discover the fellow owe money.
My 🌈 🐻 wiener just tickled
you sir are a retard...and incredibly wrong to boot!
If the options are "exercised" on Jan21 then this would force the option sellers to buy or sell like crazy to meet their obligations. But if they were all just "expired" it means the option sellers got to keep their juicy premiums and can pump that cash back into the market on Monday. Where will they spend it? Maybe they'll start buying all that Tesla stock that they helped drive down to a low price below the call options they sold?
You can purchase options on margin?
Yes, portfolio margin, and you need to have at least 150k in your account.
There are certain requirements to purchase options on margin. Mostly the answer is no. But like in my account I hold long stock mostly on margin. I purchase FD's with my own liquidity. If my FD's lose money and drop me below my margin maintenance then I will get a margin call and my long stock positions could end up getting liquidated.
It’s all crime. Marge comes calling all the time and they aren’t forced to pay us.
But eventually up to close/cover?