08-19-2021, 05:19 AM
Fenders53,
"You could do effectively the same thing with a QQQ holding, sell calls and use a stop loss.
I tried to do this with a OTO order in the past . First selling the stock and then buying the option. The broker's software would not allow that because after executing the sale, I would be short a naked call. My trade permissions do not allow me to sell naked calls. After reading your post, I searched for a solution. An article said that it was possible to execute a OTO order by buying the option first and then triggering a sell of the stock, The article did caution that calculating the price to purchase the call was difficult to determine because of the variables involved. The article said the best way to exit the trade was to evaluate the situation and make a determination. This, of course, isn't very practical because it would require the constant ability to monitor the market and make the trade. Would you have a recommendation for values that would make an OTO trade like this workable? What can be done if the stock drops enough over time that selling calls at the purchase price is futile?
Thanks, mid range
"You could do effectively the same thing with a QQQ holding, sell calls and use a stop loss.
I tried to do this with a OTO order in the past . First selling the stock and then buying the option. The broker's software would not allow that because after executing the sale, I would be short a naked call. My trade permissions do not allow me to sell naked calls. After reading your post, I searched for a solution. An article said that it was possible to execute a OTO order by buying the option first and then triggering a sell of the stock, The article did caution that calculating the price to purchase the call was difficult to determine because of the variables involved. The article said the best way to exit the trade was to evaluate the situation and make a determination. This, of course, isn't very practical because it would require the constant ability to monitor the market and make the trade. Would you have a recommendation for values that would make an OTO trade like this workable? What can be done if the stock drops enough over time that selling calls at the purchase price is futile?
Thanks, mid range