Excellent. That might eventually stop you from firing off random trades that you obviously don't understand, and get you to either give up trading options OR doing a bit of studying so you'll understand why you shouldn't do this. Repeating: "...why you shouldn't do this." Expanding a bit: look up the definition of theta (even better, look at the curve showing theta over time to expiration.) Then come back here and tell us why doing the above is a REALLY bad idea. Look up the inputs to the Black-Scholes formula, and note the one called "implied volatility". If you take a drill to your forehead, it's not the drill that has "special ways of screwing" you.
I learned the most basic definition of theta. The decay in value over time. How about ateht? It is the unfounded principle that the longer you wait for a future index to up in value, the more likely it becomes a reality? The FACK did NQ do today? 550 point run straight-up from the midnight close until now? WTF with larger caps. Sorry for the tangent, just musing about how ateht is real. :-\
Judging by your post,I will go out on a limb and say you may not be ready to trade TSLA.. Im assuming you know earnings are coming out on the 22nd,vol is jacked.. The market makers did not drop vol 40 handles on you. First you said you legged a spread,took a small hit,got out and then revenge traded and bought a call...TSLA rallied,but you took a 10 point hickey and then said BOTH your options finished ITM,but you were only long 1 call.. You totally lost me comparing 1 share of TSLA costing 1600 dollars with a 13k option position. Are you trading 130 dollar options/spreads??? You did mention your spread cost was 5.75...Where did 13k come from??
After the debit spread, I bought one individual call. And some TSLA ITM options (1640 calls) are $13000.
Do you plan on selling before earnings (Wed) or after? TSLA at $1,643 Long July24 1640 calls @ $130 Price target after earnings $1,773+ 52-week high $1,795
people play options cause you can possiblly make 100% or ROI in a week if you are lucky same as gambling not investing, not even trading. without doing anything. or lose 50% of your capital in a week with options. and with some options there is counterparty risk or negative pricing for options in energy options which is BS too. in BS rigged market. also the way they price these OTM put and call options is BS too. and is mostly option players who 'play' the options. with these 'sophisticated' condos or spread BS
OP, I only read the first few words of your post... “I am getting scared of trading options” you are doomed then.. trade smaller or don’t trade