Community Discussions
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When the Devs let you put the capital in Philadelphia
Main Post: When the Devs let you put the capital in Philadelphia
Top Comment:
Smash that upvote for WaWa.
Where should I put my capital? I’m playing as troksky
Main Post: Where should I put my capital? I’m playing as troksky
Top Comment:
Coolest: Arkhangelsk Smartest: Moscow RP Trotsky: Leningrad
Do you need very large capital to sell SPX Put option?
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I am trying to sell SPX Put option. It gives me an error that my account doesn't have enough cash.
I thought SPX is cash settlement. It settles the differences between the strike price and index price.
Updated: For anyone who has the same issues as me. To sell the SPX option, You need the Level 3 option. Sell One naked PUT at strike price 6000, you will need cash about 20% of Strike Price which is 120K.
If you do the credit spread, you don't need large capital to cover.
Top Comment: Hey, u/LogicX64 ! Thanks for reaching out about your trade. I'm happy to help and discuss the requirements for selling index put options. Let's get right to it. First, you'll need to ensure you have the appropriate level options tier for your trade. To sell uncovered puts (a.k.a. naked puts), you must have a margin agreement on file and be approved for tier 3 options. Additionally, to sell naked puts, you must maintain a minimum equity balance of $20,000 for equity options and $50,000 for index options in your account. Further, for board-based indexes, including S&P 500 Index (SPX), the margin requirements are determined using the following formulas: Whichever value is greater is the requirement: 20% of the underlying value, minus the out-of-the-money amount, plus the premium 15% of the strike price, plus the premium You can review this information and find more insights about our options trading requirements in the Margin FAQs below. There's an entire section dedicated to options trading. Margin FAQs Also, as you noted, SPX options are cash-settled. To clarify, this means that cash is debited or credited to the contract holder's account. For short index puts, when a client is assigned, Fidelity debits the account for the in-the-money amount, which is the dollar difference between the index level and the strike price of the contract multiplied by the contract multiplier (generally 100). You can learn more about index options and the multiplier in the Fidelity Learn article included below: Fidelity Learn Options We appreciate you reaching out to us about this, and choosing Fidelity for your brokerage needs. Please let us know if you have any additional questions about your trade or this information. Our team is always happy to help! Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read the Characteristics and Risks of Standardized Options . Supporting documentation for any claims, if applicable, will be furnished upon request.
What Happens on Assignment of a Put Credit Spread If you Don't have the Capital for the Shares?
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Hi all - I'm eyeing up some put credit spreads since they seem to be a good way to risk less buying power and still collect a good premium with limited risk. Specifically, I was looking at CRSR March 19th expiration with a selling 35 strike at 2.90 and buying the 25 strike at 0.75 for a net premium of 2.90 - 0.75 = 2.15 for a capital risk of $1000 (35 - 25 * 100).
If it closes below 25, I lose $885 ($1000 - $215 credit). If it closes above $35, I make $215.
My question is around what happens if it closes between $35 and $25.
The short put would be assigned, and it would cost me $3500 for the shares, and the long put would expire worthless.
What happens if I don't have the buying power to cover the assignment at expiration? ie. my buying power is less than $3500 for the shares? Does the broker automatically take assignment of the shares and sell them for the market price (for a loss of 35 - market price)? Do they take assignment of the shares and execute the long call option to sell them at the lower strike (for a max loss)?
I'm using TD Ameritrade if that makes a difference.
I like CRSR a lot. I think they're going to continue growing, so I think this is a good trade, but I don't want to jump in without thinking through what happens at expiration.
Top Comment: This is "pin risk". Best to look up some content online and on YT to fully grasp the risks associated with it. Your entire portfolio can be blown up and you'll receive an instant margin call if you're assigned at expiration and pinned without the necessary buying power or cash collateral. Additionally, your broker would liquidate other positions - as many as it takes - to cover themselves at your expense. This is one reason why a lot of people/platforms recommend trading longer than 30 DTE on spreads like this so they are more easily managed. I'm also positive that there are other users who would be able to better describe the technical risks associated here with far more eloquence.
What was the CIS capital before TCW put it on Raxus?
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It's been a while since I read the Republic comics or any pre-TCW Clone Wars era material. Where was Confederacy's capital located? Was it on Serenno, or was TCW the first source to estabilish a proper capital for the Separatists?
Aditionally, were there any differences in how their government worked in comparison to what was shown in the cartoon? AFAIK, the show had the first depiction of their parliment, ever.
Top Comment: The government of the cis is more or less the same in the multimedia project and tcw, the cis was not a government but a coalition of systems and corporations that wanted to secede from the republic. As a result, the central government was weak, and true power lie with dooku and grievous and more powerful members of the confederacy: I e, the separatist council
Mom put my name on her Capital One credit card which is now 120 days past due, I just found this on my credit report, what do I do?
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UPDATE: I was just an authorized user and was able to get removed from the account. My credit will recover. My boundary issues with my mother continue, but that’s a story for a different subreddit. Thanks everyone!
Hi folks, I ran a credit report and found 1 account that is 120 days past due with capital one. This is my mother’s account, she put me on it years ago to build my credit. I asked her to take me off several months ago but she did not. The debt is ~$3000. Mom has let it go 120 days past because she is planning to file bankruptcy. We didn’t realize my name and credit info was attached to any of it. Question: should I pay the balance to keep it from hurting me more by going to collections? The minimum payments are as little as $100/mo. I can afford it, but feel I shouldn’t have to pay for money I didn’t spend. Mom is moving in with me this month (due to financial hardship, hence the bankruptcy) Thanks for your advice 🙂
Top Comment:
Assuming you are an adult, you can just call the bank and ask them to remove you from the account. After you do that, in a month or so, it will drop completely from your report.
SMB Capital Is a Giant MLM
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After digging into SMB Capital’s operations, it’s becoming obvious they function more like a flashy MLM than a legitimate proprietary trading firm. While they claim to be about “developing traders,” the real business seems to be in selling overpriced courses and creating an illusion of success.
Here’s why:
They Hire Actors for YouTube Videos: Their YouTube channel features people who look like successful traders but are reportedly hired actors. These videos are designed to sell the dream of becoming a profitable trader, not to show real results.
Massive Upfront Costs: Their courses and mentorships come with jaw-dropping price tags, often in the thousands. It feels more like a sales funnel than genuine trader education.
Upselling Is Their Game: Once you’ve paid for the basics, they constantly push “elite” programs or one-on-one coaching that cost even more.
Lack of Transparency: They don’t provide hard evidence of long-term success for the average trader who goes through their programs. The “success stories” often feel cherry-picked or exaggerated.
Recruitment-Focused: They spend more time marketing their courses to bring in new clients than actually trading. It’s starting to look like their trading floor is just a façade for their education business.
It’s giving major MLM vibes: selling you on a dream of financial freedom while making their money from YOU, not the markets.
Edit: For those asking for clarity: check out this post on r/quant https://www.reddit.com/r/quant/s/oCx8pkgIke
I’m seeing a lot of “wannabe traders” reply with a lot of hopium, im afraid I can’t help you unless you have an open mind and actually take a step back and think, why go through all the effort to make YouTube videos, sell courses etc when you make all the money you do from trading?
I’ve read “one good trade” it’s a load of garbage, a story about some fictional characters where the average Joe can be sold a dream of one day becoming like them. I’m afraid life isn’t that easy, trading won’t make you rich, stay in school & get a job, don’t let these suckers sell you the dream with their business and get rich off of you.
Top Comment: Good for you for realizing that. There will still be people defending them, but they are nothing more than scammers in fancy suits.