Samwise Quick Reference Handbook
To streamline our daily blogs and conserve space, we’ve organized key resources into a convenient, collapsible dropdown menu below. A sort of Quick Reference Handbook if you will -- as our friends in aviation might call it. By clicking the menu below, you’ll have qu...
Please login to view this page.
AAPL is still very offbeat
That $565 surge is here
Hi Sam, I was able to finally enable tier 2/3 options for my Fidelity account. I was curious how you’re able to sell shorter dated calls against your leaps. I see a warning message saying that the sell to open option is not covered by a long position.
I understand that the leap effectively covers the call, but according to the system, are we technically selling uncovered calls and need to bypass this warning?
do you have margin enabled on your account? AFAIK your leap call should be bought using margin and then you should be able to sell the short call (also on margin) both calls have to be on margin.
If you bought your leap call using cash, call fidelity to move it to margin (after margin is enabled on your account)
Also, how do you typically determine how wide the spread should be?