Paper trading accounts be like that.

I used ToS paper account and when my ticker split it did that and glitched.

Honestly, best to get like $2K and do a CSP (Cash Secured Put) and learn.

cpi, low vol. theta will eat.

So just to confirm. If i sell a put and the strike price hits by expiration It would force me to buy the shares in a real account? Thats my understanding at least.

So I don't really mess with options, just with shares. But to my understanding when you sell a put( similar to buying a call) you should buy a mirror option to close out the position. Usually you do this before expiration so your not assigned the position at expiration.

So let's say you see a stock. Stock A, trades at $17 a share.

You sell a $15 put for 1/17/2025. You collect $1 in premium. So $1 x 100 = $100 in premium.

On Friday Stock A closes at $14 a share at 4:30 PM EST or 5:00 PM EST whatever the settlement time is.

You get assigned shares at $15, so 100 x $15 = $1,500. But you collected $100 in premium. So you are at breakeven with cost basis at $14 a share. Even though your broker might put your cost basis at $15 a share.

What do you mean you lost the premium, you collected this upfront? What specifically was the expiration date for the 15.5 put?



He sold the put , theta decay works to his advantage here

This post was edited by Bazi on Jan 16 2025 09:55am

That's what i thought, but I didn't get assigned the shares for some reason.




The expiration date was the 10th of Jan. I sold a 15.5 put and the stock closed on $14.1. So I thought it would force me to buy the shares but it didn't and I just lost the premium.

This post was edited by Brookzyboy on Jan 16 2025 11:49am

What u mean tho you lost your premium ? You collected the premium the minute you sold the put

But yeah you should have had that premium and then had 100
Shares of Sofi at 15.5 cost basis. Agree with above it’s probably a paper trading bug why you didn’t get assigned the shares. Share assignment with options is complicated and the shares don’t always come from one source . Especially more the case with cash covered puts than with covered calls

Yeah, when you sell calls or puts. You collect premium.

So you keep premium and Assigned Shares at that strike price.

But because you are using a paper account. Sometimes it doesn't work properly.

Best to learn the concept and use actual money.

ibit

xrp, hbar, xlm, xdc, trump coin/sol

these iso20022 are taking off...

This post was edited by ElideN on Jan 19 2025 09:07am