Market continues to crash

[cherynsq]

In ibkr , when wanting to sell a covered call , how do I know it is using the 100 underlying shares I already obtained ?

im using a cash account , bought 100 units of underlying stocks yesterday and tried to sell a covered call contract at a strike price and 31 Oct 2025 expiry . But when I tried to sell, system warn me that I am short selling (which means naked call). But I already have the 100 underlying confirmed purchased .

How do I resolve this ?please help

 

[cherynsq]

I called ibkr earlier and the gentleman accent who I can’t comprehend clearly kept telling me it’s automatic . Ignore the warning , once the order is up and people buy it , ibkr will know .

but in the strategy builder , it shows I have unlimited loss , a specific break even and a max profit . “Unlimited loss “ isn’t that naked call?

I’m not sure if cso knows or don’t know . I’m worried

 

[dev_stg_prd]

Need to have 100 shares to sell 1 covered call?

If for example I have only 80 shares of 1 counter means cannot do covered call right

Not enough means naked call.means if kena call then you have to buy the 20 to make up for it

 

[dev_stg_prd]

What so you guys think of msft and meta dip after ER?

 

[wutawa]

What so you guys think of msft and meta dip after ER?

I am vested in msft. I diamond hands.

 

[N4E.SI]

Not enough means naked call.means if kena call then you have to buy the 20 to make up for it

Thanks but does it work this way? I believe u need to have at least 100 first for the transaction to be successful

I dun think the brokerage will allow combining of covered + naked call options

Maybe I try it out next time with 1 of my counter

 

[N4E.SI]

What so you guys think of msft and meta dip after ER?

MSFT has overwhelming buy calls by Wall Street analysts

Meta like 7/10 recommended buy

 

[dushensiao]

What so you guys think of msft and meta dip after ER?

Buy and hold, wont toh. Just dont all in.

 

[sales69]

I called ibkr earlier and the gentleman accent who I can’t comprehend clearly kept telling me it’s automatic . Ignore the warning , once the order is up and people buy it , ibkr will know .

but in the strategy builder , it shows I have unlimited loss , a specific break even and a max profit . “Unlimited loss “ isn’t that naked call?

I’m not sure if cso knows or don’t know . I’m worried

Should be auto. But mine is margin account.

 

[cherynsq]

Should be auto. But mine is margin account.

Do you get to see it took the 100 shares you have as collateral in any indicative format before you submit the call contract ?

 

[sales69]

Do you get to see it took the 100 shares you have as collateral in any indicative format before you submit the call contract ?

No indicative. Auto take away only when called.

Meanwhile can do whatever you want with the 100 shares.

 

[qOo_oOp]

Need to have 100 shares to sell 1 covered call?

If for example I have only 80 shares of 1 counter means cannot do covered call right

need not if your account is a margin account.

people sell naked calls (without underlying).

you can also consider poor man's covered call. buy 1 call option, then sell cc against that call option.

 

[qOo_oOp]

cannot win my 10k pltr at 14.... if not now is a free 3 bedder.

edit fpark me is 14k

https://ibb.co/mCp4s8pX

satki. i took back my capital after it 11x. the rest let it run.

 

[weng0202]

Another reminder that AuraKupo sold all his NVDA during Deepseek event in March. If you had listened to him...

He must be crying now, nvda already push through 200 liao

 

[AuraKUPO]

Need to have 100 shares to sell 1 covered call?

If for example I have only 80 shares of 1 counter means cannot do covered call right

Since already can afford to have 80 shares, just buy another 20 more. Simple maths.

Or can buy LEAPS lagi better.

 

[AuraKUPO]

In ibkr , when wanting to sell a covered call , how do I know it is using the 100 underlying shares I already obtained ?

im using a cash account , bought 100 units of underlying stocks yesterday and tried to sell a covered call contract at a strike price and 31 Oct 2025 expiry . But when I tried to sell, system warn me that I am short selling (which means naked call). But I already have the 100 underlying confirmed purchased .

How do I resolve this ?please help

Means you doing something wrong and not actually selling CC. You also didn't say the full picture here, I suspect you left out many details.

 

[cherynsq]

need not if your account is a margin account.

people sell naked calls (without underlying).

you can also consider poor man's covered call. buy 1 call option, then sell cc against that call option.

Mine is cash account

So just to confirm , the system auto knows I have 100 underlying and I don’t need to indicate ? I am worried it doesn’t know and end up become naked call where it helps me buy at market price and sell. I will be unlimited loss

 

[AuraKUPO]

Mine is cash account

So just to confirm , the system auto knows I have 100 underlying and I don’t need to indicate ? I am worried it doesn’t know and end up become naked call where it helps me buy at market price and sell. I will be unlimited loss

Another one who don't use paper account to trade first. I love to see noobs lose money in options. Just straight dive naked without life vest, yolo style 555.

 

[cherynsq]

Means you doing something wrong and not actually selling CC. You also didn't say the full picture here, I suspect you left out many details.

I bought the 100 shares yesterday
Today I want to sell a covered call
So I went to my watchlist , click the ticker, click option, option chain and then under 31oct , find strike price and click the ask . That’s all. I don’t know what else’ to click ?

 

[qOo_oOp]

Mine is cash account

So just to confirm , the system auto knows I have 100 underlying and I don’t need to indicate ? I am worried it doesn’t know and end up become naked call where it helps me buy at market price and sell. I will be unlimited loss

from my experience, you typically need a margin account to trade options. i trade using IBKR, ToS, MooMoo. all require margin account for options trading as options is inherently a leveraged product.

when you mention cash, i think if your position is a long call/put, still possible, but short position abit dubious.