Naked call adjustment

Discussion in 'Options' started by Tal priel, Aug 7, 2020.

  1. xandman

    xandman

    Do I smell Ammonium Nitrates?

    Cause that trade is BLOWN!
     
    #11     Aug 7, 2020
    BlueWaterSailor and Amun Ra like this.
  2. ironchef

    ironchef

    If OP listened and did that late today, the damage isn't too bad.

    upload_2020-8-7_21-27-56.png

    Shorting something with an IV of ~ 135% is too risky for me so I would get the hell out.
     
    #12     Aug 8, 2020
    xandman likes this.
  3. Learnd my lesson!
    I bought it back at 17 , the first and last time for me to sell naked call .
    For 400 $ premium its the stupid thing to do if you are bearish on a stock.
    So i lost 1300$ in this trade and I'm felling relief.
     
    #13     Aug 8, 2020
  4. smallfil

    smallfil

    Yesterday, it fell by a huge amount. Had you bought a put option instead, you would have made out like a bandit. Also, your maximum risk would have been the cost of the premium and not a penny more. That is why I am an options buyer instead, of an options seller. I would rather risk a couple of hundred dollars with the goal of winning thousands instead, of the other way around which is risking thousands of dollars to make a few hundred dollars.
     
    #14     Aug 8, 2020
  5. Amun Ra

    Amun Ra

    You know...now that you exited the trade, on Aug 21st the stock will close at $94.99
     
    #15     Aug 8, 2020
    Option_Attack likes this.
  6. Sadly, this is probably true. The Market knows what you are doing. The Market will do whatever it can to hurt you. Oh how many times have I bought at the HOD and sold at the low... :( :D

     
    #16     Aug 8, 2020
  7. deltaf0rce

    deltaf0rce

    Post the position.
     
    #17     Aug 8, 2020
  8. ironchef

    ironchef

    That is actually OK. You can't win them all.
     
    #18     Aug 8, 2020
  9. ironchef

    ironchef

    Don't feel bad and don't give up. Welcome to the club as many of us (me) had similar experience in our past.
     
    #19     Aug 8, 2020
  10. Amun Ra

    Amun Ra

    Yeah, happens to all of us. Now though, when I'm thinking of cashing in or cutting losses, I ask "Would I buy/sell at this price if I wasn't in the position?" That always helps me think more clearly, especially if I entered a FOMO trade which I try not to do, but usually end up in one once or twice per month.
     
    #20     Aug 8, 2020