selling options

Discussion in 'Options' started by Mdtbyk, Dec 12, 2017.

  1. Mdtbyk

    Mdtbyk

    I'm selling a ES call 2590 and is expiring in 3 days
    now it says in the column of "unrealized profits or loss" is says -2500$ but if i go to option chain it says that i can sell at the same date a and same strike at 2590 for 78*50 which will give me 3900$ is isn't it worth for me to buy back my call and sell again at same time to cover up the loss?
     
  2. Visaria

    Visaria

    Cover up your loss immediately! No losses allowed.
     
    EliteThink likes this.
  3. Mdtbyk

    Mdtbyk

    the questions are how
     
  4. Visaria

    Visaria

    I'm joking mate. You r gonna have losses in this business. If you want to short further options, you have to analyse the situation again and not let your current position affect the analysis.

    Don't personalise your losses (or your profits). It's just part of the business.
     
  5. tommcginnis

    tommcginnis

    There is a lot missing in your question.
    But assuming there is not a mistake between different price types (bid, ask, mid, VWAP, last, peak, yesterday's freakin' close...), there is also the mystery of how you entered the position.

    My guess is that your method of entry cost you $1500. :rolleyes:
     
  6. Roderick

    Roderick

    I need an ananylis of this situation and no reoccurence of it in the future =)
     
  7. The "Daily P/L" is usually* calculated from bid/ask mid-price which might be skewing things. In any case, the real numbers are in the bid/ask columns

    *Depending on your broker
     
  8. Lol, not this again, but while we're on the topic...if you hold until expiry you're guaranteed to keep 100% of the premium - talk about edge! Sell, sell, sell.
     
  9. spindr0

    spindr0

    Yep, sellers of naked options never lose because they get a premium credit in their account which they get to keep no matter what. Uh-huh, great edge.:confused: :wtf: :(