It was a low probability bet. If GOOGL made a move of equal magnitude, then he would have made several times his initial bet. It's not a bad way to take a flyer, imho.
Trade still open. GOOGL at $548.02 April10 557.50 Calls at $0.05 (bid). 1 day to expiration. Sell to close Limit Order at $2.50. Need about 2.3% gain on GOOGL for the Limit Order to be filled. Will try and sell the calls at any price around 3:00 PM Friday to clear from my account.
GOOGL at $548.60 +0.48% from time of entry. April10 557.50 Calls expired worthless. Still bullish on GOOGL.
Typical rookie mistake...buying the so-called cheap...far out of the money options gambling/lotto play.
Absolutely not. There is no more risk in buying OTM weekly options than any other option position, ALL options positions involve the risk of losing money. A rookie mistake is using too much leverage, no trading plan, failure to control risk, always searching for the perfect trade and not understanding that "losing is part of winning". FYI: 2.1 % is not far OTM with 3 days to expiry, it's OTM.
GOOGL earnings Thursday 23rd. 200 dma is at 545.49 and macd starting to turn higher. Right now the chart looks not really bullish or bearish? But market is so bullish currently.
Trading plan? Controlling risk? Is that what you think you did with this trade? You rolled the dice on an OTM call, that's it. There was no plan or risk management involved. You simply had a gut feeling that Google was going to go up, and you bought an OTM call to see if you're right. No more thought went into it then dropping a hundy on black at the roulette table.