Bought 1 contract of JKS at $90 strike 11/20. I am down $55 but I am worried if it tanks further nobody would want to buy my call and it expires and auto-excecise and I lose even more money. What do you recommend. Sell to close now or wait closer to expiry? I don't even have the money in my account to own the shares incase it does auto-exercise. Will there always be buyers if it tanks even further? (I am pretty new to this.)
You are only assigned the underlying if your option expire ITM Your max loss is fixed if it expires OTM and you will find a buyer to sell it to before you reach max loss, although you might find larger bid/ask spread
Auto-exercise only applies if you're ITM at expiration. Since you're more than $30 OTM, it's nowhere near being applicable to you. And yes, you'd still be able to sell it if you wanted to; there's ~6k worth of open interest at that strike. You can get out any time you want to pay that spread. Your concern about the auto-exercise his isn't some kind of a subtle point that requires expert advice; it's easily found with a simple Google search. You should do that. Not because people here grudge you advice, but because your learning will progress a lot faster if you put some effort behind it and rely on yourself to whatever degree you can.
Btw, any of u guys looking at KNDI? I just gave out a call alert yesterday when it was under 7 and now it's at 8.40. Wonder how much money I could've made. I was looking at the yahoo option chain of KNDI at 9:54 am and the bid/ask was at .25-.30 and now it's .70-.80. So almost quadruple.
I think you should read a bit more on options. You are trying to run before learning how to walk. It's a multidimensional instruments that requires a lot of study just to get the basics covered.
I think options were developed as "sucker bets" (commission generators)... to which you have likely succumbed. Success in options requires a high level of competence. In spite of the current rage for noobs to "take your stimulus money and pile into OTM Tesla calls... expecting them to skyrocket tomorrow"... and even though that has worked for a bit... that ain't it. I suspect those who "made a bundle" at Robinhood buying calls, won't get to spend the money they made. They'll likely take their gains and buy more "next time 'round to multiply their gains"... and when the options expire worthless, they will have lost all their money. Just a guess.
I suspect more than a few of those "Hoodies" option experts, that actually managed to make and keep big gains this year, are going to fall for the "I don't need to worry about taxes for a few months" trap next year. They'll trade it up like little demons early next year and lose most/all of previous year's gains. "Whut? How can I owe $87,000 in taxes? My account is empty???..."
Thats a huge run considering I sold my $70s yesterday after hitting $3.50-$4.00. I paid $1.90 I think.