SPY

NyCWalker76

OP wouldn't have to worry if SPY opens at 735.

FraggDieb

This happend to me befor because I just forgot to delete my Stop Sell Order. When I trade SPY Options I mostly open two sell orders after buy. One for Stoploss and one for Profit taking. I normally do a OCA Order so when one is triggered, the other gets deleted. Yeah somehow I setup two different orders. My Sell Limit was executed and I took my profit. My Stoploss Sell order was still there and I sold a QQQ Put option. Luckily it closed above and I was able to take the premium. But this is how something like this happens

jmc774

Now do SPY

robomartin

So you haven’t lost 70k, but you are obligated to buy 100 SPY units for 70K, which you can turn around and sell on the open market and get most of your money back if you don’t want them. Problem is you will have to raise those funds to buy the 100 SPY units at that price. So that means liquidating other positions in your account. I would assume you have the means to do that though otherwise the broker’s risk guard rails failed badly. Not sure what happens if you literally can’t deliver. That’s you might have to work out with your discount broker.

anon4crypto

This is why i tend to stick to SPY only

-sakuranbo

We'll be working on the 4th of July to get holiday pay & blow it all on SPY calls the next Monday

_AT198

S&P futures (SPX), 60% is taxed as long term capital gains/ 40% is short term vs Options which is 100% short term capital gains. S&P and SPX are virtually the same, except add a 0 to the price. Overnight gap is the index’s moving while the market is closed. Buy options at the close to trade the next day. Many hedge funds use SPY/QQQ to hedge overnight gap. Good Luck to you.

anon4crypto

Just like all degenerate gamblers here, i started doing options on hype and memes, made big/ lost big, then stumbled on spy late last year. I now trade 90% SPY - but i went heavy after declaring day trader status with IRS last year.

mosacism

# Damn should've just put allat into SPY, and NOT 0dtes 💀💀💀

anon4crypto

All SPY 0DTE https://preview.redd.it/x02hv9fmvr9h1.png?width=1080&format=png&auto=webp&s=7632c8ec84f56a32845e4b4f72ba34eb273315e9

LadderAdmirable

Looks like we have ceasefire again. SPY 740 by Monday on renewed optimism?

RaisinZRH

What if he doesn’t have enough cash to buy those SPY shares?

levelup1by1

don't worry too much. you pay 70k, but you get 100 SPY shares. you can choose to keep or sell

flying_cactus

You dont owe 70K like its some fee you pay your stripper. Youre using it to buy SPY. Youre going to be fine

VinceCheong

Call up or chat up with Moomoo, you definitely have a portfolio enough to cover after margins. See when do you need to repay or get rid of your SPY positions. As of now it’s weekend so business day starts on Monday.

Mrgluer

The war is already priced in. All of this is basically all priced in. They aren't doing anything full scale and its all now for show. Things are winding down. SPY, WTI and else dont give a shit anymore. The supply shock is figured out and most people adapted.

Ok-Belt5652

Looks like 100 shares of SPY were PUT on him!

unhappyreach_

It's much easier to make money when SPY is vertical for 9 weeks

No_Obligation4496

Actually even less. He got like $350 dollars of premiums initially. If SPY moves up just a little bit he might actually make a slightly profit.

Russticale

I took alittle exposure off the table end of day.  Caught a good entry this week with some MSOX calls.  Even sagged some trlv n gtbif today.  Things are looking up boys.  Options volatility has perked up a bit, but theres so few people buying leverage in this sector. Im betting on a positive reaction this coming week into July.  We’re gonna be in the news, macro SPY is a tired market.  Cheers to hoping people park their money here and we get an expedited closing to the rescheduling hearing before July 15th🍻🍸🍺

cappy1223

Hmm Google says that it's actually case dependent. Margin account is considered secured debt with the stocks as the asset. Forced sale and recuperation of liquid cash to apply towards the debt, and the difference is considered unsecured and can be written off in a bankruptcy. So yeah, OP can sell the SPY shares for as much as they can, pay towards the margin debt themselves, and *then* declare bankruptcy on the remaining amount. Doable.

_Clit-Commander_

Not SPX, XSP, its 1/10th the size of SPX and close to SPY price so its SPX for the poor.

Learner_Mentor

I believe SPY option only settle funds not get aligned like traditional stocks.

512165381

> SPY opens higher than $733 on Monday From experience, biggest reason for drop is Trump starting another weekend war.

jfrantz2

You have a margin account. As others have mentioned, you were assigned and are now long 100 shares of SPY. On Monday, your broker will require you to meet the maintenance margin requirement for those shares. If you don’t have enough margin/equity available, the broker will issue a margin call or liquidate the position at the current market price. Regardless, you still keep the credit from selling the put, so it’s too early to say whether this ends up being a gain or loss. It depends on where SPY opens/trades when the shares are sold. You do not simply owe $70k. Your actual P/L is basically: put credit + sale proceeds from the shares - assignment cost So using the numbers here: $348 + $72,899(replace this with where Spy opens Monday morning) - $73,300 = -$53 Some brokers may also charge a small amount of margin interest or fees. TL;DR: You don’t owe the full amount shown. You own 100 shares on margin, and the final gain/loss depends on where SPY trades when the position is closed.

TheRealHotHashBrown

Don’t panic bro. You can sell them (the 100 shares of SPY) when market opens. You might even make a profit is SPY opens green. You sold a put and it was naked because you didn’t have the cash ready in your account. Usually, if you have the cash ready, that would be selling a Cash Secured Put. In your case, the cash wasn’t secure so your broker liquidated other assets when you were assigned. Don’t panic ok. This is manageable. 👍

misterhomebody

I'll be mad too if I was stuck with 100 shares of something as garbage as SPY too.

jiqiren

congratulations, you almost discovered the wheel option strategy. you should have just rolled the option to the next week or month before it was assigned. now you'll have to just sell the 100 shares of SPY you purchased on Monday to put your account back on track.

Bob_the_peasant

Damn people have no sense of humor outside of this thread. I said SPY 760 on Monday after we win the Iran war for the 29th time and people got legitimately hostile at the idea of SPY going up 4.5% in a day.

Emotional_Shape925

I agree with this. But SPX is wild, and the regarded OP ain’t ready for that. That being said, my dumbass has picked the wrong side of SPX trades too many times that I don’t do it anymore. If I play SPY I just make sure I have calendar alerts set 1 week prior to expiry just in case. But I’m usually not in the position too long.

_Clit-Commander_

Or better yet stop being a dumbass and playing 0 DTE SPY that settles in shares and trade XSP which settles in cash only and it’s more tax efficient in the US anyway. Also broker can’t liquidate you 30 minutes prior. Same price point as SPY basically

Soulsetmusic

Depends what you want. The main key is leverage. Your premium (the price you pay for the rights) is going to be a fraction of the money you’re theoretically moving. Like in OPs example, (he’s regarded) but he’s trading 73,300 for 72,900. A $400 loss. Buttttt the option he sold and someone bought was priced at 3.48 (348 dollars to buy it, OP collected 348 in premium for the rights) so OP made 348 dollars to sell a theoretical 73,300 worth of SPY. The buyer paid 348 dollars to buy a theoretical 73,300 worth of SPY (betting on it to go down, on puts they get to buy the shares at the close price so 72,900) the total price difference is $400 on a $300 dollar bet, like 125% the leverage is the draw. But in this case OP lost like $50 bucks and the buyer made like 50 bucks (premium and price difference).  In a classic non gambling way, say I have 100 shares of NVDA. I can sell a call (selling the right to my 100 shares) and say my average is $100. I set a $200 dollar strike. I’ll collect say 5.00 premium ($5 per share, $500 bucks for the contract, always x100) and if the contract expires, I’ll retain my 100 shares + the $500, if it finishes at 201 I’ll collect the $500 premium and sell 100 shares at 200 so 10,500 in return total.  That’s just concept and covered calls and I think I definitely made that more confusing so I’ll wait to get into puts and spreads and such later.  Hope that helped lmao I’m sure it didn’t but it is really simple once you “get” it. 

INFOWARTS

One of two things will happen: 1. The 100 shares will appear in your account sometime between now and Monday morning. When the market opens, you can sell those at whatever SPY is trading at and that will satisfy the margin call. 2. They will deliver these shares and then immediately liquidate them for you, satisfying the margin call. Basically the same as 1, but they force your hand a little stronger. The bigger question is how they let you sell a put with no where near enough collateral to cover assignment. Most brokerages would have canceled that trade the moment you submitted it.

userhwon

ETFs and likely not. The broker should have sold the shares but seems to have zapped his cash balance in the prices. He may own 2k worth of SPY or not.

Genericsky

If SPY went to 0 where would people go to work? It means the top 500 public companies of the US went to 0. What would be the reality of the rest?

userhwon

If his broker liquidated anything other than the SPY shares, his broker is as bad as their name looks.

userhwon

Talk to your broker, not these idiots.  You didn't have funds to cover assignment. When you got assigned, your broker had to lend you their money to cover paying for the shares. Then they most likely liquidated the shares to cover it.  If they liquidated the SPY, then the notification was generated because of the loan and not retracted, and you're probably balanced or maybe a few dollars up or down. If they didn't liquidate the SPY, then you have 100 shares of it now, and you still owe them $73k in margin debt for buying them without having cash or margin (other assets in share form) to cover it. Just sell the shares and the cash from selling will automatically pay the margin debt. If they liquidated your other assets instead of the SPY shares, then fire your broker. What the fuck is a Moomoo Financial anyway? You trust your money with people like that? They robbed you. So don't trust them. Get a real broker, ffs.

JoeFollowsFlow

Iran hit a tanker. USA waited until market close to strike. SPY gapped down the last 45 seconds on the rumor. OP is most likely way more fucked here than people are saying on a weekend gap down.

DisgruntledTexan

Selling SPY puts at ATH with 3 year high inflation, growing unemployment, softness in residential real estate is something special

JoeFollowsFlow

Being assigned 100 shares of SPY on margin minutes before the US launches another attack on Iran. He’ll be lucky to get $700 at open. If OP didnt know what futures were before, he will now lol.

FederalExpressMan

Or if Trump decides to talk to Iran for the 500th time SPY will pump and he gets $1k+ in his pocket for being regarded

sgkubrak

Well done! $816 yesterday on SPY for me. My record too. Be careful my friend, winning is a drug.

ExoStreaM

Kudos, best answer here. OP, you might even be lucky and SPY opens higher than $733 on Monday and you make a small profit. I once had some guy exercise an OTM short put on me. Next day, I basically got margin called because I was assigned $300k of QQQ at $594. Mind you, QQQ ended the day at $597 so that was crazy, I was already $3 in profit. As luck would have it, QQQ opened higher at $601 and I managed to sell for a tidy $2,750 of profit after including the broker’s interest of $300 on the $300k I borrowed. Lesson learnt for me was to play the cash settled options like SPX or XSP. SPY and QQQ were too scary for regards like me.

MaybeICanOneDay

You will get the shares. Just sell them back for a few grand loss. Also, SPY doesn't work like this. SPY is the price of a specific mix of all the companies in it. If it deviates, Large holders will trade in X amount of SPY shares for the individual companies. This is how it remains so close to the actual price of all the companies. The arbitrage is something you can make bits of profit on if youre rich as fuck and have the ability to do this. You can also do it the other way to make new spy shares.

igotherb

You only owe the difference between spy and the strike of your option multiplied by 100. So (733-current SPY price) x 100= what you owe

Ninjascubarex

I had to have ChatGPT explain the situation with more concrete language for me.  Imagine you make this agreement: "I promise that if someone wants to sell me 100 shares of SPY, I'll pay them $733 per share, no matter what the market price is." For making that promise, they pay you $348 immediately. A few days later, SPY is trading for $729. The other person says, "I want to use our agreement." Now you're required to buy: 100 shares × $733 = $73,300 Your brokerage buys those 100 shares for you at the agreed price. That's why your account suddenly shows you owe $73,300.  It's because you just bought $73,300 worth of stock. But those shares didn't disappear. You now own 100 shares of SPY. Since SPY is only worth $729 per share, those 100 shares are worth: 100 × $729 = $72,900 If you immediately sell them at the current market price, you receive $72,900. Here's the math: You paid: $73,300 You sold them for: $72,900 Loss on the shares: $400 Money you were paid for making the promise: +$348 Final result: -$400 + $348 = -$52 So when people say, "He owes $73,300," it sounds catastrophic, but it's similar to buying a house with a mortgage.  You owe a large amount because you just purchased an asset.  Since you also own the asset, your actual gain or loss is based on the difference between what you paid and what it's currently worth, not the full purchase price.

hobopwnzor

Yeah it's pretty weird that they would let you sell a naked put.  You should probably get level four options taken off your account if you don't know what you're doing.  Still my comment stands that your total loss is pretty low. You'll just need to call them and they will find a way to settle it on the back end and you'll pay the difference. Which won't be that much as long as SPY doesn't immediately drop by a massive amount

Bob_the_peasant

You buy back a SPY put so you weren’t short anymore, up to 15 minutes after market close. The broker selling it early has nothing to do with it other than they knew he didn’t have the cash

Infinite-Broccoli535

731 to 760 on the 29th. why dont you guess SPY 800 by the 29th then

holdingupcardboard

VOO/SPY have been meme stocks for a while now. A massive portion of the us population are permabull without even knowing it due to retirement accounts. And plenty others buy it in their taxable account at every opportunity and refuse to buy anything else.

FundamentalEnt

Yeah honestly they are freaking out but come open Monday they will probably see huge returns. Today SPY walked back a couple days and you know they hate that. They are gonna drum something up Sunday night/Monday morning and homeboy is gonna be rich comparatively. Idk enough to know if they can hold till then but if so 100 SPY is gonna be fine of all the things we see here. Light bag to hold.

Toohotz

You’re failing to grasp he bought SPY and not a cash settlement derivative such as SPX. You get auto exercised before the actual close of market if the option is ITM as it was the case here. If he sold naked then that is a problem as the broker is asking for the 70k deposit to buy the 100 shares of SPY. Your comment also about how “he could’ve closed for a thousand bucks or whatever”. This made me realize you have know idea wtf you’re talking about as he sold the put and collected the premium. How TF would he make additional money on the capped upside you bot, it isn’t a long position it’s a short. You’re not apart of the “1% of this sub” and it shows.

OhBenjaminFranklin

If the put you sold was exercised (which it was), then you now own 100 shares of SPY. It's automatic, so you should check your account positions page again.

SnowballWasRight

I don’t do options but does that not mean you have 100 SPY shares now lmao? Just sell them

Sufficient_Sport5251

Bro probably bought on the spike up. SPY stopped trading in the after market window at 732.11 $0.89 away from net nothing

Rich-Advertising-230

Just breathe. You’ll be fine. You’ll likely end up losing a few hundred bucks. You got exercised and had to buy 100 shares of SPY. The outstanding balance shows the cost for purchasing the 100 shares. Now that you have the shares, you can sell them on Monday. Depending on what happens over the weekend, you could honestly end up green if we gap up. It’s a big scary number but you’ll be alright

spacklock

I’m noticing a lot of the big profits coming from SPY trades. (also from DRAM and MU) I want to try, but every single SPY call or put is so expensive! But I guess its true, scared money don’t make money! I just started two weeks ago, so far my biggest return was $142 from a $0.23 call. Like clockwork every time I sell a call/put, it goes up not even 5 min later. Any tips you could share with me that you learned along the way to now?

Bob_the_peasant

I think less than 1% of this sub actually knows how options work. He could have closed this out near or even a few minutes after close for a thousand bucks or whatever Now he has to buy 100 shares of SPY at that strike…. He can sell them on Monday for nearly full value or hell, probably make a profit flipping the shares when it runs back up to 760 on the 29th victory over Iran. Maybe he doesn’t have the cash to buy make good on his contract to buy 73k of spy. In which case I dunno, “do it like we did WEN” becomes more of the “do it like we did behind the dumpsters at WEN”

az000l26

It was a 0dte put option that expired on thursday and I don't see any 100 shares of SPY on my account. I will call this fucking broker tomorrow.

Hiding_in_the_Shower

If SPY goes to 0$ we’re all fucked

DOGMASCHINE

if SPY goes to zero we’re *ALL* fucked

hobopwnzor

You're obligated to give them 100 shares and they will give you 100x whatever the strike price is for the shares. So you aren't in debt 73k. The value of the contract at expiration is just 100x(Stock Price - Strike price). Looks like SPY is 728.99 right now, so you actually only owe $401 to settle the difference.

haleakala420

sell the SPY shares and pay them back asap

type_your_name_here

You know he's going to be fine. He's just required to own 100 shares of SPY because he sold a put contract which exercised. A put is an option to sell something, and since he sold an option to sell, he has to buy it, but it's not like he's out 70K - it's just the additional amount he needs to deposit to cover the cost of buying 100 SPY at the strike price, but he will end up with 100 SPY stock that he can just sell for a few hundred dollar loss.

Sufficient_Sport5251

Considering after hours SPY closed at 732.11 and it was a 733 put. OP might be out less than $100. Considering OP is using RH, he def had the capital to cover losses, so he will just be out whatever the gap between after hours close and pre market open. If I am remembering correctly. Dude is out $500 max unless the market gives out.

az000l26

I dont see 100 shares of SPY bro, it was 0dte contract that expired on thursday. I need to call this fucking broker.

Capable_Wait09

Just sell the shares back. Now you own 100 shares of SPY but you only covered like $3k of the $73k you owed so still owe $70k. So just sell the shares back when the market opens. Or call the brokerage and tell them it was a woopsy and they might just undo it for you.

Bad_Badger_DGAF

Well, congratulations, you now own 100 shares of SPY. Sell em as soon as you can. Looks like you'll take a bit of loss, after counting your premium. Not too expensive of a lesson. But enough to put the fear of God in you for a while. Also, don't use a shitty broker, switch to Schwab or Fidelity at the least.

rhuffq

This reminds me of the guy that did options on Robinhood and he thought he owed hundreds of thousands and decided the best course of action was to delete himself. Seriously if the OP was going to make this kind of screw up SPY is the best thing to do it with.

az000l26

It was a 0dte put option and as far as I know there isn't a 100 SPY contract on my account. I also only have 2000 USD cash account so I didnt know what happened.

HDauthentic

Congrats on your 100 shares of SPY

TheeWalrusOverlord

SPY to 0 on Monday!

Jason_Steakcum

This was a 0 DTE 733 put option for YESTERDAY 260625 and SPY closed between 734 and 735 so congrats the put you sold expired worthless. Idk how youd be assigned but if so worst case you’re only looking at a couple hundred loss worst case since it’s spy, not SPX

whatintarnationdude

Why does anything dropping by 700 points matter here? He sold a 1 733 strike Put for SPY that expired today, which means he had to buy $73,300 worth of it which is about the amount he owes now.

Scalpaholic

SPY 11/30 600P looks tempting. Even stacking a few throughout the IPOs 🤔

teahugger

SPY is at $729. It’s literally a $4x100 loss if OP sells Monday am. Not bad at all.

No-Macaroon1670

It's actually not that bad, really he's only on the hook for the difference between 733 and whatever SPY will be at when he's able to sell x 100 shares. That's probably like 400 USD. His brokerage should have automatically closed his position instead of letting him take assignment for $73k USD worth of shares.

Appropriate_Rest_180

Just sell the SPY you were assigned.

Realityhrts

This is horrible advice. Just sell the 100 shares of SPY on Monday. It’s really not a big problem.

jraven877

On a positive note, you own 70 shares of SPY.

Shivin302

You're fine, you'll have 100 shares of SPY that you can sell or your broker will automatically sell for you

afishinacar

You don’t need 73k really. You need to buy 100 shares of spy at $733 as that’s the contract you sold. What generally happens when you don’t have the funds to cover, the broker will close out the option early to protect you. You’ll have to buy 100 shares of SPY at 733 to fulfill the contract. Then you can immediately sell the shares of SPY to recover that 73k. Spy looks to be around 729 so you’d lose 400 in that case. You did get a premium of $348 for selling, so really as it stands you’re only down $52. You could end up positive/negative based on how your broker handles it, and the price of SPY when they resolve it for you. Based on the text you probably now have 100 shares of spy in your account. You have to sell them to cover that deficit.

Saltlife_Junkie

Sell the SPY shares. It’s not as bad as it looks

Ambitious-Bad-6779

1 contract is the obligation to buy 100 shares of SPY. Usually puts are sold when they are cash secured. So you must've had 70k portfolio or buying power value. If you didnt, you sold a naked put and need to deposit money to own 100 shares of spy.

BlackKnightsOptions

SPY puts March 30

Hellmale

On Monday SPY?

GarthBooks69420

Alright this is it guys, It's time to make a decision. I have about 10K in cash that I'm going to put into an IRA. Do I buy SPY calls that are like a year out, or do I buy TQQQ shares. In both of these occasions I would be waiting for a dip.

motherrunner817

SPY waiting until options trading was over to dump is still pissing me off 🙄 you couldn’t have done that at 3:30? 3:40 even?!

Independent-Cress382

Speaking about SOFI holy shit remember Chamath and his SPACs? SPCE -98.54%, OPEN -60.02%, CLOV -46.96%, SOFI is the only one with a positive return at 71.47% since SPAC but remember it took over 2 years to even go back over the default SPAC price of $10. If you bought SPY instead of SOFI you would be up 128%.

Familiar-Meat-6572

The one that stands out to me most was when I first got Public about a month or 2 ago, I noticed that it was either VBIL or SGOV after market closed it claimed the stock jumped .10 to .15 cents a share which would be astronomical. It increased my total unrealized P/L to match, but checking another brokerage it was still at the same price as close. The next day, it dropped back down to the previous day price. Also, just clicking right now on the S&P 500 Index there is no "daily recap" regarding what the price movement was about and that's what I was mentioning that about. SPY as of right now also doesn't have it either, but I see it on various other stocks/ETFs.

i2noob

wtf is that $SPY sudden drop near closing time, its like bear's erection

No-Improvement3164

My prediction of SPY 776 on the 4th of July seems unrealistic today.

OM3N1R

Anyone see the final minute candle on SPY at 716?

darienrude_dankstorm

Again, you're not sticking to any facts, you are proposing that insiders sold enough stock to bring the SPY down like half a percent as the market was closing. You have no understanding of how much capital would be required and are conveniently overlooking the massive index rebalancing to support your stance. Not everything is a conspiracy.

bearhunter429

#In the last 8 trading days SPY had 6 red days LMAO🤌

Iunatic

SPY is not even 4% from ATH and people be saying stuff like this

Empyrion132

When you buy a contract, your break even point is the strike price plus premium. So eg if you buy SPY $730 puts for $5.00, your break even will be $725. If SPY closes at $728, you’re ITM but still lose money overall. Most options expire worthless, and depending on your entry point even more expire at a loss even ITM. Do with that what you will.

WocketWaccoon

David “contrarian cuck” Hunter told me to buy SPY $1000c

ThetaEdgeHQ

The inverse ETF route is the worst version of this for the reason already noted, vol drag compounds against you the longer you hold. If you want a fixed budget crash bet, the structure that actually does what you want is a defined risk long put or put spread on SPY or QQQ, where your maximum loss is the premium by construction and nothing decays past it. A flat long put still bleeds theta and IV though, so if you are paying for the move and not for insurance, a put spread or a put ratio cuts the volatility and time cost a lot. And size it as a hedge ratio against what you already hold, not as a standalone 100k coin flip. The naked directional bet on timing the crash is the part most people get wrong, the structure is the easy part.

TJMBeav

Why is there such a big disconnect between $SPY and the S&P index today? WTF...or is CNBC fucking with my head?