I'm a bit in a pickle where I did a pmcc on my leap.
I got assigned last week where I'm short roughly 95is shares (had bought a few shares before). The UI on webull shows me with a net loss of 45k. If I were to close my leap.
GLD $320
15 Jan 27 Call 100
I would recognize about 8k gain. (Cost basis of leap is 6400)
My pmcc short call was strike price at 455$. So I essentially need a pay 45500 to get rid of my short position of gld shares.
My issue is I don't want to keep a short stock position of my recent assignment. But if I sell my leap as is, I'm still not gonna have enough to really cover my repurchase of my shares assignment.
I thought it would be better to exercise my leap, buy my shares using margin and then immediately sell them at market price? I would probably buy it at But this isn't suggested by Gemini and I'm not sure why... They recommend I sell the option itself and get value off of the extrinsic.
Thoughts? New to pmcc.. the webull UI freaking me out a bit with the 45k loss since I was assigned 45.5k worth of short stock . Though if I exercise my leap of 320, shouldn't I recognize a gain of about 467 - (320+64) * 100 shares = $83000 ??
My buying power is still okay. I don't want to pay interest on borrowing on margin and get margin called. Mainly that's the reason I want to clear my short position. I already bought 47 shares back as of the screenshot but before I buy the rest out, I just want to make sure I'm understanding the situation best and why I had to realize a 45k loss and it's potentially bad to exercise leap rather than sell my leap..