Well boys, looks like I messed up.
I did a calendar spread on NFLX before earnings (opened last week). I sold the 7/19 370 Put and bought the 7/26 370 Puts. Classic right?
Well I nailed it on earnings. Thankfully I closed out from 10 contracts to only 2 long and 2 short before they declared earnings. I’m guessing in everyone’s panic to cover their short puts expiring Friday before they got exercised this caused the weekly to increase 300% whilst my put with a bit of time value only increased 150%. Technically 100% loss however I still own these puts to exercise so I’m covered right? Worse case risk-less exercise and I lose the premium I paid
Got a notification at 10PM Mountain time that “My order for 200 NFLX has executed at 370” and immediately go OH SHIT and check my account.
35K margin call in my sub 10K account. Didn’t get the notice till 10 at night which I thought was strange.
Do you think I still have a chance to come out of this thing green?
I own 200 shares at 370 so I will have to sell, currently at 325ish so a 9K loss.. Assuming I do so I can do that then sell my puts and still net 125 bucks at least.
I have fully embrace the autist and here I was thinking I was playing it safe. Thanks WSB
*EDIT I’ll get y’all a loss picture soon after work. My dumbass closed the puts out and held the shares when I should’ve either closed both or done the opposite. We all know where NFLX ended today. 11.75% loss in the account
*EDIT
Posted the realized gain/loss and change in account value. Wiped out the other gains I had today and ate into my account hard.
wiped out all my gains for the day and then some
Disclaimer: Consult your financial professional before making any investment decision.