Selling Call options without underlying shares
Just started papertrading for options recently. i shorted a call for SPY yesterday at strike price 367 when the market just opened.
The price went thru 367 and to 368, before closing at 366-ish. The papertrading doesnt take into account that I do not have underlying SPY shares. I only have a transaction for receiving the premium less fee. It does not reflect the loss. Is this also applied to real-life trading, or just papertrading?
The price went thru 367 and to 368, before closing at 366-ish. The papertrading doesnt take into account that I do not have underlying SPY shares. I only have a transaction for receiving the premium less fee. It does not reflect the loss. Is this also applied to real-life trading, or just papertrading?
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Wolf_10 : Yes both
Wolf_10 : I believe. Cus I bought spro at 1$ put and the price went thru that but still won't sell, gotta wait for excorsicm
Wolf_10 : Oh wait. Are u implying that you have a contract without underlying shares in your portfolio? And iit's not showing your loss. Huh. Yah weird honestly, you should beable to see ur contract because that is what an option is. 100 shares of underlying stock for a premium
Wolf_10 : I'm new, bud… so idk shet. To be honest
72788602 Wolf_10 : If you're using SPY, I'm not certain you would have any underlying stock since SPY is basically a Fund Stock. Any resulting transactions would be done in cash. You would have to have the funds available should your option go against you. At least that is my understanding.