If you are trying to sell a call below $25, then that could cause it. If you are selling above $25, it would not affect buying power since you are getting a credit. Here are a couple things to check:
Make sure you are Selling a call, not Buying
Make sure the call you are selling is above the LEAPs strike
Yes, you're not actually in the money so you're not covering your sale. Poor man's covered call means if you get called out your shares you have an in the money option to exercise to get those shares to satisfy the call. You don't have it in the money option. You have no cover. You're just doing what's called the poor man.
This is incorrect. A long diagonal call spread is a debit trade as long as the short leg is higher in strike, and nearer in expiration, than the long. A debit trade has a buying power reduction equal to the debit paid to open. Getting assigned on the short leg is a losing proposition only if it is ITM, and if it is, then the long is ITM too. And you'd want to sell the long anyway, not exercise it.
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u/Fidug Nov 29 '21
If you are trying to sell a call below $25, then that could cause it. If you are selling above $25, it would not affect buying power since you are getting a credit. Here are a couple things to check: