oh man some brokers are the worst. options platforms that have no idea how to handle these trades. took me 4 hours on the phone but i picked up a net of $1.85 on about 1/4th of my shares.
did that by selling common avg 30.35. bought dec $29 & $31 calls avg $3.50, and sold dec 30 puts avg. $5. for every 1000 shares that's +5 dec 29 calls, +5 dec 31 calls, and -10 dec 30 puts.
i did the $29 & $30 calls instead of pairing with the 30s because i'll have fewer positions to scramble around expiration if i'm near one of my strikes. if i had all $30 calls & puts i would have potentially 2 positions to juggle if the stock expires near $30. this way i should only have to juggle one position:
assuming 1000 shares converted this way:
if the stock is under $29 around expiration, i'll close out the $29 calls. the 10 puts will get exercised & i'll own 1000 tesla at $30.
if the stock is between $29 and $30 i'll cover half the puts. the 5 $29 calls and remaining 5 $30 puts. will get exercised and i'll have 1000 shares of tesla at an average $29.50.
if the stock is between $30 and $31 i'll cover all the puts and buy 500 common. the 5 $29 calls will get exercised and i'll have 1000 shares at a maximum price of $30.
if the stock is over $31, i'll let the $30 puts expire worthless and exercise the $29 and $31 calls for 1000 shares at an average buy price of $30.
sounds pretty complicated but in reality it's not that bad except when you put it on and maybe that week of expiration.
normally i wouldn't worry about different strikes except it took me 4 hours on the phone to get the whole trade done. and i'm afraid how long it might take to get out so better to create a strategy to minimize options trades i may have to do down the road.
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my daily motivational reading, what the high and mighty penny pumpers say about luv:
"any knowledge you currently have about trading, finance, accounting, etc... that i don't, are things i can fully absorb within a relatively short period of time if its really important to do so... on the other hand, i am quite certain that you are incapable of grasping even 20% of the knowledge i've gained in math, associated algorithmic coding, physical chemistry, solid-state physics, materials science and engineering over decades of study."
"There are those who market trades, and there are those who trade markets.
There are those who follow marketers, and those who follow markets.
The marketers feast on their followers; the traders feast on the markets." -luvb2b
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