What would you do here?

Discussion in 'Options' started by GotherL, Sep 14, 2021.

  1. GotherL

    GotherL

    I bought SQ 10/15 270c yesterday at 2.58. It went as high as 5.00 today.

    With only 1 contract is it correct to cut it for nearly 100% profit or would you say to hold it longer? (Assuming you've a good feeling it goes higher b4 expiry...)

    It did drop back in the 3's so selling at 5, reentering at 3 would've been the better choice but hindsight is always 20/20.
     
    Last edited: Sep 14, 2021
  2. I would put in a limit order to sell at $7.74 ($2.58 x 3) - good until Oct 15.
     
  3. deaddog

    deaddog

    If you had a plan going in you'd know what to do.
     
    d08, rb7, MrMuppet and 3 others like this.
  4. newwurldmn

    newwurldmn

    how high do you think it can go? By when? How low do you think it can go? By when? How likely do you think either case will happen?

    you are asking someone else to answer these questions for you when that is your job.
     
  5. xandman

    xandman

    Don't evaluate the option based on its price behavior. Evaluate it based on the expected price of the underlying and the IV that will get assigned to it.

    IV is the real price of an option. The premium value is just a result of a formula. You made a decision to go to buy that call based on the behavior that you saw in the underlying.

    What do you think will happen to the underlying price? What will happen to IV and will you have the wind in your back? Is a call still the best expression of a bullish position? And as always, how have your risks changed?
     
  6. If I read your post correctly about a 10/15 bull call spread then $5 is the most you are gonna get for it at expiration.
     
  7. cesfx

    cesfx

    10/15 is the date, 270c the trade
     

  8. Ahhh Ok got it I am used to people writing OCT 270 Call I was trying to figure out what the 10/15 and 270 were... never mind :)
     
    cesfx likes this.
  9. cesfx

    cesfx

    Reddit changed everything :D
     
  10. xandman

    xandman

    What a dog. Didn't participate with the rebound. Sell.Sell.Sell.
     
    #10     Sep 15, 2021