<p>“Deduct the dividend of .939 x8500.”</p>
<p>I’m not certain where you’re getting 8500 from, its 9500:</p>
<p>sold 85 168 calls = 33.5
sold 9500 spy at 173
bought 1000 spy at 143
bought 8500 spy at 200.87</p>
<p>Can you see the unrealized pnl in that account? This could be super simple. </p>
<p>OK – that’s fine – that’s why I do my option trading within my IRA’s too. :)</p>
<p>Only as to the rest, I wouldn’t care about the details. With my IRA’s I only care about total account value. That is, I wouldn’t be spending any time at all doing the math to figure out net gain vs. loss in a situation like yours. I don’t really see the point. Something unexpected happened which means that you didn’t get what you expected when you entered the trade --but if dstark is right, you are coming out ahead of where you were before ---- so why worry? It’s past and done, so it’s not like trying to figure out what to do with a current open position… </p>
<p>Ok…, i see those numbers. The 143 calls were exercised.</p>
<p>Can you see what is in your unrealized and realized numbers? </p>
<p>What you want is in the unrealized numbers, the realized numbers or both.</p>
<p>It is not as difficult as I am making it. :)</p>
<p>because it still cost me 9k that if I did it correctly might have saved me the money and I don’t completely understand the details of the trades.</p>
<p>I don’t see the unrealized pnl. I really hate the fidelity interface. </p>
<p>Go enjoy yourselves, I’m heading to bed.</p>
<p>by the way - thanks for all the help!</p>
<p>Ok…just want to say you did not lose 9k . </p>
<p>You would not have sold the 168 calls. for a premium on Thursday. They were parity on Thursday.</p>
<p>You just lost the .26 8500 times plus most of the .94 1,000 times on the 143 calls.</p>
<p>That 's your loss. Around $3,000-$3200.</p>
<p>Have a good night and thanks for the heads up with fidelity’s interface.</p>
<p>@DocT --</p>
<p>I’d assume that the broker’s action was driven by a computer algorithm – the exercised the options that allowed you to get the best price possible & minimize losses.</p>
<p>That is, from what I understand, you had:</p>
<p>Long Calls:</p>
<p>100 SPY 168
10 SPY 143</p>
<p>Short Calls: </p>
<p>100 SPY 173
10 SPY 200</p>
<p>95 of your short 173 calls were assigned – meaning that your broker needed to fill an order from your account. The only way to do that was to exercise options to buy 9500 shares of SPY.</p>
<p>So the computer looks for the cheapest way for you to buy the SPY – so that’s why the ten 143 calls are exercised first, ahead of the 168 calls. That means your cost to fill the order was $143,000 + $1,428,000 - or $1,571,000 – </p>
<p>You are paid, $1,643,500 – so the net (not accounting for dividends and commissions) is + $72,500. You sold 9500 shares of SPY @ 173, but your average cost per share was a little above 165. If Fidelity had simply sold the 95 168 calls, then your cost would have been 3 points higher per share, or $28,500 – so basically Fidelity chose the most beneficial path for you.</p>
<p>Even though in your mind you are thinking of these as separate spreads – to Fidelity’s computer it just looks like you had 110 calls with a 1/17 expiration, so I think it is logical that it would exercise the lowest strike set first.</p>
<p>That leaves you with the sense of an imbalance in your spread — but it looks to me like you are still holding a spread with 15 calls – it’s just that it’s divided in an unusual way:</p>
<p>Long: 15 @ 168
Short: 10 @ 200 + 5 @ 173</p>
<p>So basically you still have an artificially created 168 / 191 spread. (I get the 191 figure by averaging the strike price on the short calls) </p>
<p>I think that if you wanted something different to happen, you would have to notify Fidelity in advance. Whether they could or would set up a different set of instructions for your account probably depends on the terms of your account holder agreement. </p>
<p>I wrote a long post but it was gone. I made some money with call options for PCLN today. Nice chunk for 1 hour.</p>
<p>Good for you! Nice to see that you can profit on an overall dismal day for trading.</p>
<p>Do you also hold long stock positions in your trading account – or do you just stick with a mostly cash basis and then try to get in and out to close trades quickly? (From your posts it sounds like you are mostly doing very quick turnarounds on option trades). </p>
<p>Doct, everything straightened out? </p>
<p>We can figure out the pnl pretty quickly if fidelity did not help you…</p>
<p>You would need the cost of the 143 calls… </p>
<p>Your cost of the 168 calls. We have the sale price of 33.50. </p>
<p>What you received for the 173 and 200 calls. </p>
<p>The cost of buying the 8500 shares of stock which you gave us…200.87</p>
<p>calmom, I do own some stocks but they are not volatile, they will be called away in Jan. I still get the dividend from now till Jan, unless it’s called away.</p>
<p>Do the calls still have some premium in them besides the intrinsic value?</p>
<p>It’s in the money. But last time I closed HPQ, I lost some money by closing,more like $300 instead of usual commision. So I’m not doing that again.
I have more of them in another account.</p>
<p>Well, in the money doesn’t necessarily mean the calls are going to be assigned. </p>
<p>For example, If a stock is 50 and the calls with a 49 stock price are trading for more than $1, the calls probably won’t be exercised.</p>
<p>I was tied up all day with the 1 day of work that I have before jury duty for the rest of the week:</p>
<ol>
<li> bought 143 calls for 45.26</li>
<li> bought 168 calls for 22.807</li>
<li> sold 173 calls for 18.68</li>
<li> sold 200 calls for 2.66</li>
<li>cost of 8500 spy at 200.87 = 1,707,470.25</li>
</ol>
<p>I’m left with 15 168 calls and -5 173, -10 200 calls. What is the pnl and how much of a dividend do I owe? :(( </p>
<p>I mean the stock is $13+ and the call is $12, so there it will be exercised.</p>
<p>Ok…doct…we are good.</p>
<p>You sold 9500 shares at 173+ the 18.68 premium which equals 191.68.</p>
<p>You bought 1,000 shares at 143 plus the premium you paid of 45.26 so you paid 188.26.</p>
<p>On those 1,000 shares you made 191.68- 188.26 = $3.42 x 1,000 = 3,420.</p>
<p>8500 shares you paid 200.87- your sell price of 191.68= 9.19 x8500 shares = a loss of (78,115)</p>
<p>Don’t freak out…I am not finished. :)</p>
<p>You bought 85 of the 168 calls for 22.807. sold for 33.50.
Profit is 10.693 times 85x100=90,890.59</p>
<p>realized pnl is 90,809.59+ 3,420=94,310.50
minus the loss of 78,115=16,195.50</p>
<p>16,195.50 is your realized gain
minus the dividend you have to pay .939 x9500 shares =8920.5</p>
<p>profit locked in is…$7,275.</p>
<p>You can check my calculations to see if my arithmetic is correct.</p>
<p>Now…you also have unrealized gains…I have to look at where the options closed.</p>
<p>I thought you said that my dividend payment was around 3000?</p>
<p>Ok…unrealized gains change with the stock movement. You are long.</p>
<p>drops in the price of the etf right now will lower your unrealized gains.
If spy rallies you can make a little more in unrealized gains. </p>
<p>The 168 calls closed around 31.85. I am using 27.08 for the 173 calls. I am using 4.88 for the 200 calls.</p>
<p>You paid 22.807 for 15 168 calls… They are trading around 31.85. so the unrealized gain right this second you have unrealized gains of 31.85-22.807=9.043 times 15 calls times 100= 13,564.50</p>
<p>$13,564.50 of unrealized gains in the 168 calls.</p>
<p>The 173 calls to close you would pay approximately 27.08 and you sold these for 18.68 so you have a loss of 8.4 times 5 calls times 100 =$4200.</p>
<p>You have an unrealized loss of $4200 in the 173 calls,</p>
<p>You sold 10 of the 200 calls for 2.66.</p>
<p>You would have to pay approximately 4.88 so that would be an unrealized loss of 2.22 or $2220. (10 calls x 2,22)</p>
<p>so you are sitting on unrealized gains of </p>
<p>13, 564.50-4200-2220= $7,144.50</p>
<p>$7,144.50</p>
<p>I did not include commissions or fees in the above numbers. Maybe a around $400?</p>