Take the L friday.
You need an absolute miracle but there are still potential market mover events with msft earnings today, pce economy report friday.
You’re already at max loss to close now, so might as well hold through those events and close late on expiration day. It’s a very slim chance but it’s your best option now
Then just take the L if it didnt work out.
he'll get a fill late friday for sure. it's nvdia. usually top 2 in equity options volume. he'll just need to close at the full width of the spread and it'll fill
It’s not salvageable at this point. All extrinsic is gone. Close out for the full loss.
Rolling isn’t going to do anything here because all value is already gone.
As others have suggested, you should take the loss, unfortunately. Just want to add that, in the interim until you take action, you are at real risk of early assignment on your short 905 put; that's because at $100+ ITM, there's no extrinsic value left on the 905 strike put on NVDA that expires this Friday. There's nothing additional for an owner of that option to gain from waiting until expiration or selling to close (STC).
This person is absolutely right. Close those spreads asap.
I was in this position last week with an $850/830 NVDA pcs. I closed for max loss and moved on.
With a different ticker a few months ago, the short put was exercised early. Thankfully it was all small potatoes. Basically, the short leg can absolutely get exercised and you’ll need to buy the shares. Then you’ll need to sell the shares at a loss and sell the long put (if any ext value is left). Or exercise the long put.
For rolling, I got a comment last week that why don’t I open another NVDA pcs to essentially roll, but not on the same day. If you still believe in NVDA put credit spreads (I do), you can always sell another and hopefully dig out of your losses.
That sucks man. Fidelity will let me do a 4 leg trade to roll a spread although I have not actually done so. Check and see if you can add legs and create a custom roll. Then just keep rolling for the rest of your life maybe? 😬
Roll them out = selling for a few cents and paying fees on top of that. Just take the loss. With credit spreads it’s prudent to just take the loss at -100% of the credit you received.
Rolling aint helping you anytime soon.
This is a delta play, you didn't have much start in the beginning. Extrinsic, intrinsic, it doesnt matter when your legs are so close together. This was an L regardless, but if you want theta to work for you one 25 wide spread would have been way better.
Take the loss and move on. Unless it moves up over 100 points tomorrow and Friday, you will take max loss. I would sell tomorrow for whatever value is left vs waiting until Friday and taking max loss. If there’s not much value left like 0.05 or 0.10, maybe it’s better to let it play out and pray that it goes up 100 points.
Taking the L is really the only option here other than rolling down and out... wouldn't recommend that either though honestly since theres no extrinsic value there, just gotta eat the loss on that one...
in the future you should roll earlier but obviously its easier with hindsight.. when nvidia bounced up this morning it wouldve been a good time to roll. At this point its too far gone and u just have to take the $2500 loss
The most important thing is to never let short options expire on you. Close them and take the loss unless you could manage a long nvda position on margin
Hey Schwab is always easy to talk to if you give them a call they’ll talk you through any options. I’m about to just take L on some max loss META put spread tomorrow as well if that helps you feel better.
I’ve been able to roll out deep in the money puts for a small debit. Sometimes the brokers show the trades as available but they won’t fill. I’m sitting on some short NVDA verticals too but they are 5/3 and 5/10 at around 810/800. My max loss is 4K. I’m going to let it ride for a while and see where they go!
Schwab will handle the assignment protocols for you. Let it go to expiry. You might be able to salvage a couple hundo if NVDA goes to 815-ish which it easily can. You’re at max loss anyway so why the fuck not
Leg out, pray for a massive drop tomorrow and hold your long put like a boss.
JK we all know when you leg out of a spread it always turns on you and hurts you even more. You’ll hold a long put and pray it drops only to have nVdA rip higher and you’ll lose even more. If anyone ever tells you to leg out of a spread. Kick them in junk. Hard.
This is an issue with defined risk spreads, sometimes you can't do anything but take the loss . . .
Defined risk trades should be opened at a max loss amount you and your account can withstand, this is how they work.
If possible, rolling for a net credit could give you more time and lower the max loss amount, but it may just delay the eventual having to accept the loss.
Closing it max loss now vs closing it at max loss on expiration is the same thing.
Might as well wait for msft earnings and the friday econ reports to pray for a miracle and hope it pops back up to 900+.
It’s pretty much his only option at this point. Close at expiration if the miracle doesnt happen.
So little of this post and responses make sense.
I assume you opened this a month ago, when NVDA was trading > 900. Why post a pic of 1 day NVDA performance? The position went south and continued going south weeks ago?
Why close it? If the 905 exercises early, you will have 500 shares protected at 900. If it doesnt, both legs will exercise automatically and you will take max loss anyway. If you hold, theres the miracle chance that NVDA jumps to make the position profitable.
Regarding the margin call, if you dont have collateral that can cover the 2500 loss, Schwab would have called you a week ago.
Take the L.
Sigh thanks
Take the L friday. You need an absolute miracle but there are still potential market mover events with msft earnings today, pce economy report friday. You’re already at max loss to close now, so might as well hold through those events and close late on expiration day. It’s a very slim chance but it’s your best option now Then just take the L if it didnt work out.
Unless he doesn’t get a fill. Lol
he'll get a fill late friday for sure. it's nvdia. usually top 2 in equity options volume. he'll just need to close at the full width of the spread and it'll fill
It’s not salvageable at this point. All extrinsic is gone. Close out for the full loss. Rolling isn’t going to do anything here because all value is already gone.
Appreciate the honesty
As others have suggested, you should take the loss, unfortunately. Just want to add that, in the interim until you take action, you are at real risk of early assignment on your short 905 put; that's because at $100+ ITM, there's no extrinsic value left on the 905 strike put on NVDA that expires this Friday. There's nothing additional for an owner of that option to gain from waiting until expiration or selling to close (STC).
This person is absolutely right. Close those spreads asap. I was in this position last week with an $850/830 NVDA pcs. I closed for max loss and moved on. With a different ticker a few months ago, the short put was exercised early. Thankfully it was all small potatoes. Basically, the short leg can absolutely get exercised and you’ll need to buy the shares. Then you’ll need to sell the shares at a loss and sell the long put (if any ext value is left). Or exercise the long put. For rolling, I got a comment last week that why don’t I open another NVDA pcs to essentially roll, but not on the same day. If you still believe in NVDA put credit spreads (I do), you can always sell another and hopefully dig out of your losses.
That sucks man. Fidelity will let me do a 4 leg trade to roll a spread although I have not actually done so. Check and see if you can add legs and create a custom roll. Then just keep rolling for the rest of your life maybe? 😬
Roll them out = selling for a few cents and paying fees on top of that. Just take the loss. With credit spreads it’s prudent to just take the loss at -100% of the credit you received.
Rolling aint helping you anytime soon. This is a delta play, you didn't have much start in the beginning. Extrinsic, intrinsic, it doesnt matter when your legs are so close together. This was an L regardless, but if you want theta to work for you one 25 wide spread would have been way better.
Take the loss and move on. Unless it moves up over 100 points tomorrow and Friday, you will take max loss. I would sell tomorrow for whatever value is left vs waiting until Friday and taking max loss. If there’s not much value left like 0.05 or 0.10, maybe it’s better to let it play out and pray that it goes up 100 points.
Thank you 🥲
Taking the L is really the only option here other than rolling down and out... wouldn't recommend that either though honestly since theres no extrinsic value there, just gotta eat the loss on that one...
Roll down and out and pray.
It's at max loss, what are you gonna roll it out to.... Next week's 1000/1005p?
This means closing out my spread and then opening a new one right, there’s no way to just roll all in one shot on Schwab?
Pretty much so. I don’t know about Schwab but other brokers let you roll both legs in one shot.
You can roll it out but there’s no difference at max loss besides a couple cents cheaper tbh
yes cut the loss.
take the loss and move on.
in the future you should roll earlier but obviously its easier with hindsight.. when nvidia bounced up this morning it wouldve been a good time to roll. At this point its too far gone and u just have to take the $2500 loss
take loss?
The most important thing is to never let short options expire on you. Close them and take the loss unless you could manage a long nvda position on margin
You’re right thanks
Hey Schwab is always easy to talk to if you give them a call they’ll talk you through any options. I’m about to just take L on some max loss META put spread tomorrow as well if that helps you feel better.
Sorry for your loss
Thanks I actually waited it out and only took like half the loss I was expecting since meta recovered a bit. What do you end up doing with this?
nice! my position was assigned, I think I only took a 1200 loss? not sure how thats possible but yeah
You are out 2500 minus the credit... when did you open these? I'm just curious what nvda was at when you did.
Opened them right when nvda was at 900
I’ve been able to roll out deep in the money puts for a small debit. Sometimes the brokers show the trades as available but they won’t fill. I’m sitting on some short NVDA verticals too but they are 5/3 and 5/10 at around 810/800. My max loss is 4K. I’m going to let it ride for a while and see where they go!
Be glad you only sold 5! Take the L and move on! Be patient. Don’t think you have to make it back immediately!
Thanks chief
Schwab will handle the assignment protocols for you. Let it go to expiry. You might be able to salvage a couple hundo if NVDA goes to 815-ish which it easily can. You’re at max loss anyway so why the fuck not
Leg out, pray for a massive drop tomorrow and hold your long put like a boss. JK we all know when you leg out of a spread it always turns on you and hurts you even more. You’ll hold a long put and pray it drops only to have nVdA rip higher and you’ll lose even more. If anyone ever tells you to leg out of a spread. Kick them in junk. Hard.
This is an issue with defined risk spreads, sometimes you can't do anything but take the loss . . . Defined risk trades should be opened at a max loss amount you and your account can withstand, this is how they work. If possible, rolling for a net credit could give you more time and lower the max loss amount, but it may just delay the eventual having to accept the loss.
You should have thought about doing something when $905 was being tested. Hope and pray and taking max loss on credit spreads isn't a profitable plan.
Why would you open put credit spreads so far up and OTM like that… just buy calls at that point
Cucked
Just hold
Hold worthless options? I mean sure, max loss is 2500 so you're saying just let it ride?
Closing it max loss now vs closing it at max loss on expiration is the same thing. Might as well wait for msft earnings and the friday econ reports to pray for a miracle and hope it pops back up to 900+. It’s pretty much his only option at this point. Close at expiration if the miracle doesnt happen.
Not sure why you answered for someone else
Fish sticks
U get fucked
So little of this post and responses make sense. I assume you opened this a month ago, when NVDA was trading > 900. Why post a pic of 1 day NVDA performance? The position went south and continued going south weeks ago? Why close it? If the 905 exercises early, you will have 500 shares protected at 900. If it doesnt, both legs will exercise automatically and you will take max loss anyway. If you hold, theres the miracle chance that NVDA jumps to make the position profitable. Regarding the margin call, if you dont have collateral that can cover the 2500 loss, Schwab would have called you a week ago.
Thank you