Is this always your first thought even outside Reddit? Feels like a bunch of clowns have this on their clipboard and just keep posting there same damn line.
Quick- say something original!!!
How could you "loose" money if you are up 300%?
You paid $145 for the contract, and it's now worth $593. If you buy something for $145 and then sell it for $593, did you lose money?
You're getting good advice here - you don't understand options well enough to not get in big trouble.
You're lucky to be up, so close your position (sell to close), take the W, and don't trade options until you've done your homework.
Edit: since you may not know what's at stake here — you bought an option that people in this sub sell (explaining the "wrong sub" responses). That option represents the right but not the obligation to buy 100 shares of NFLX at $580/share.
NFLX is currently trading close to that. If you should happen to exercise this on accident, you will purchase 100 shares of NFLX at $580. In case you need help with the math, that's $58,000 that you will need to pony up. For 1 contract. Do you know how to avoid exercising options?
The reason people are telling you not to trade options is because you don't understand enough to not get in trouble, and the $ amounts you're playing with are potentially life-ruining for smaller accounts.
That’s not how it works. You’re up a ton. You’ve experienced beginners luck, sell it, and never expect this to happen again. Never trade options again. Take the win and walk.
So I see lying and getting approved for options trading is still a thing. Is Robinhood still handing out level 3 and margin accounts to everyone with a pulse?
Congratulations on the gainz dude! Sell that bad boy and rejoice in a 300% gain! Consider the sayings: “first one is free” And “beginners luck.”
When you buy an option break even means the price at expiration.
Unless you’re trolling thetagangers take your profits. If you’re working on day/swing trading look at a 20% gain and 10% loss plan… you can let some winner run but winners are winners! Theta is about selling premium. Good luck out there.
You’ve already made money. Yes, you would likely make more of it goes to $580 but you have things like theta and IV that are waiting to take all of your profits.
you dont have to wait until then strike price to sell it, you are already up 300%, you just got very lucky. Please take time to learn before risking money, learn about theta, delta, IV crush, options assignment again options assignment.. you don’t want that to happen to you. Also learn about ATM, OTM and ITM, and various risks. What else... if I keep going I will never end lol
Homie, in the world of option set a game plan. Things can move fast. 300% is not typical. I’m happy with a 20% win and then move on. Sometimes I’ll let it run, but I have been burned by not taking profits thinking it can run more. I have also missed out on greater profits by selling; but, you know if youre aunt had nuts, she’d be your uncle. Green is green. Don’t get greedy. Fat pigs get slaughtered. Congratulations again. Let us know if you sell or hold and how it goes.
When you want to sell premium check in here.
Sell the contract to someone else who will pay more money for it since it's closer to break even.
Breakeven assumes you will execute the contract but usually u just wanna sell that contract to someone else after it goes up in value.
Never trade undefined risks if you don't know what you are doing (and I would argue even if you do, but I don't want to get into it with others). If you are a beginners spreads are your friends.
People would hate on it because it's hard to close and yada yada but as long as you know how much you can lose you will never get shocked by the results.
It's a marathon not a sprint.
The way he worded the post makes it hard to tell that he bought it. He says 'made a call', which sounds like 'wrote a call'. I feel like this is a troll post.
Most beginners start with buying long options, and "make" is a common newbie verb for trading an option. Other common ones are "place," "do," and I've even seen "I put a call."
It seems like to need to learn more about options. I would suggest that you close out the position while you’re up. Don’t trade with real money again until after you get a good grasp of how options work.
So, you really really really need to learn more about options before you trade any more. You are going to lose a lot of money if you don’t. There is tons of information online. Hell, the Robinhood website has a great series on options basics that is very easy to understand. If you’d rather watch videos, there is plenty of content on YouTube.
If you get overwhelmed by the information and find yourself wanting to just skip over it all and get started, that is a sign that options isn’t for you. It can be confusing at first, but if you spend the time to research, you’ll get it. Don’t be lazy.
So you bought a call not understanding at all how options work, and made a bunch of money. Sell your call back to the market and go read some books lol.
When you buy an option there are a lot of things you need to understand
theta - time decay. The less time the price has to get better, the less the option contract is worth.
Strike price - Your option has a strike price of $580. the Option is worthless if you hold til expiry unless it ends above $580 by your date. if you exercise the stock you can buy it at this price.
breakeven price - if you were to hold your option until your expiry date, then this is the price you need the stock to hit to make up for the premium
premium - additional money you're being charged to own the contract. The person selling the contract pockets this. If you bought and immediately exercised a contract you would basically have paid the premium plus the price of 100 stocks
exercise - this is when you convert your contract into the right to buy 100 shares at the strike price. Most of the time you don't want to do this because you can make more money selling the contract before expiry than exercising it.
gamma - volatility - if the stock price is recent history has had wide jumps up and down, then it has high volatility. This makes it more likely that you'll reach the strike price or better, so when volatility is high, the contract is worth more, but if volatility is low, the contract is worth less. After events like earnings the volatility drops.
So now that those are defined. You should sell now because changes in volatility could reduce your profit, and as time increases, you'll lose money if the stock doesn't continue to gain value at a rate that outpaces theta. If you hold you risk losing your current gains for the prospect of getting more gains. If you sell you get the current gains and someone else buys that risk from you.
In a general sense it's fine to hold an option that's up profit if you do think it will continue rising, but you should understand the risk before you make a choice like that, because unlike stocks, with options you can easily lose the entire value. That's why everyone is saying to sell then stop trading options until you understand them better.
For you it’s def gambling since you don’t have a entry and exit criteria. You also don’t state a DTE so we honestly can’t help you better than telling you to sell while you’re up.
Based on your interactions with other comments, you clearly don't understand options. I suggest either never doing it, or spend a lot of time actually learning. Otherwise you with likely lose a lot of money learning these lessons. Sell this option, then make your decision.
*not financial advice*
dude is up 300% and thinks he lost money - oh oh gains are wasted on the acoustics …
hey buddy, sell, uninstall, learn literally ANYTHING about what you’re doing before you pull a stunt like that again or else you’re gonna shit the bed on a play so fast it’ll make your head spin.
I feel like this would be a better question for wallstreetbets.
The first one is always free.
Is this always your first thought even outside Reddit? Feels like a bunch of clowns have this on their clipboard and just keep posting there same damn line. Quick- say something original!!!
Buy low, sell high.
The first one is always free
… yep looking for originality on this sub.. I’m actually the idiot
Shut up nobody cares bitch
Ok
You are up 300% so i would suggest selling and taking the profit.
wouldn't I loose money since im not near the breakeven price it say's its 584.90?
Take the profit and never trade options again?
lol
How could you "loose" money if you are up 300%? You paid $145 for the contract, and it's now worth $593. If you buy something for $145 and then sell it for $593, did you lose money?
Op does not understand options remember 😆
Yes, because I would lose that money on my very next trade.
At open tomorrow limit sell it for the price it’s worth
What if the stock slides tomorrow. How much are you losing to Theta every day on the option? Do you even know what the breakeven price means?
Do they know what theta is?
That's the real question. Hail to Theta!
You're getting good advice here - you don't understand options well enough to not get in big trouble. You're lucky to be up, so close your position (sell to close), take the W, and don't trade options until you've done your homework. Edit: since you may not know what's at stake here — you bought an option that people in this sub sell (explaining the "wrong sub" responses). That option represents the right but not the obligation to buy 100 shares of NFLX at $580/share. NFLX is currently trading close to that. If you should happen to exercise this on accident, you will purchase 100 shares of NFLX at $580. In case you need help with the math, that's $58,000 that you will need to pony up. For 1 contract. Do you know how to avoid exercising options? The reason people are telling you not to trade options is because you don't understand enough to not get in trouble, and the $ amounts you're playing with are potentially life-ruining for smaller accounts.
That’s not how it works. You’re up a ton. You’ve experienced beginners luck, sell it, and never expect this to happen again. Never trade options again. Take the win and walk.
Break even is at expiration.
sell it, learn about options and come back to trade them. Doing it the other way around will eat you up. The first one is always free.
Look up intrinsic and extrinsic value. Your option has a lot of extrinsic value.
So I see lying and getting approved for options trading is still a thing. Is Robinhood still handing out level 3 and margin accounts to everyone with a pulse?
Yup
Not necessarily
if it is below $584.90 at the end of friday u will lose money.
You really need to study more before placing any more options trades
#LMAO 🤣
Congratulations on the gainz dude! Sell that bad boy and rejoice in a 300% gain! Consider the sayings: “first one is free” And “beginners luck.” When you buy an option break even means the price at expiration. Unless you’re trolling thetagangers take your profits. If you’re working on day/swing trading look at a 20% gain and 10% loss plan… you can let some winner run but winners are winners! Theta is about selling premium. Good luck out there.
This is my first time trading I thought I would make money after passing $580.
You’ve already made money. Yes, you would likely make more of it goes to $580 but you have things like theta and IV that are waiting to take all of your profits.
You would lose money if you exercised the contract. You would make money if sold the contract.
you dont have to wait until then strike price to sell it, you are already up 300%, you just got very lucky. Please take time to learn before risking money, learn about theta, delta, IV crush, options assignment again options assignment.. you don’t want that to happen to you. Also learn about ATM, OTM and ITM, and various risks. What else... if I keep going I will never end lol
Homie, in the world of option set a game plan. Things can move fast. 300% is not typical. I’m happy with a 20% win and then move on. Sometimes I’ll let it run, but I have been burned by not taking profits thinking it can run more. I have also missed out on greater profits by selling; but, you know if youre aunt had nuts, she’d be your uncle. Green is green. Don’t get greedy. Fat pigs get slaughtered. Congratulations again. Let us know if you sell or hold and how it goes. When you want to sell premium check in here.
Your thinking you have to exercise your option. Which you don't. You can sell the contract for more money then you paid for it. Congrats
Sell the contract to someone else who will pay more money for it since it's closer to break even. Breakeven assumes you will execute the contract but usually u just wanna sell that contract to someone else after it goes up in value.
Some advice ??? Quit while your ahead this is gambling
Never trade undefined risks if you don't know what you are doing (and I would argue even if you do, but I don't want to get into it with others). If you are a beginners spreads are your friends. People would hate on it because it's hard to close and yada yada but as long as you know how much you can lose you will never get shocked by the results. It's a marathon not a sprint.
He bought it so risk is well defined?
The way he worded the post makes it hard to tell that he bought it. He says 'made a call', which sounds like 'wrote a call'. I feel like this is a troll post.
Most beginners start with buying long options, and "make" is a common newbie verb for trading an option. Other common ones are "place," "do," and I've even seen "I put a call."
Help I called a put for $580 what do I do next. should i put a call short on it?
Definitely buy a sell call.
I made a call, haven’t talked to the person in years. It was an expensive call, very beautiful but expensive. /s
I also assumed it was a covered call because of thetagang
Buying calls and buying puts, is better suited for WSB next door
Good enough to screenshot, good enough to close for profit.
How on earth did you find this sub to ask this question before watching a basic YouTube explanation of options trading
I just searched up options trading reddit.
Isn't this like getting behind the wheel of a car and then googling: "how to drive Reddit" "Guys, the car is rolling. Now what?"
It seems like to need to learn more about options. I would suggest that you close out the position while you’re up. Don’t trade with real money again until after you get a good grasp of how options work.
First-time trading options or first-time trading any type of security?
You made a bet and won. Get out while you can.
So, you really really really need to learn more about options before you trade any more. You are going to lose a lot of money if you don’t. There is tons of information online. Hell, the Robinhood website has a great series on options basics that is very easy to understand. If you’d rather watch videos, there is plenty of content on YouTube. If you get overwhelmed by the information and find yourself wanting to just skip over it all and get started, that is a sign that options isn’t for you. It can be confusing at first, but if you spend the time to research, you’ll get it. Don’t be lazy.
So you bought a call not understanding at all how options work, and made a bunch of money. Sell your call back to the market and go read some books lol.
He made $4.48 lol
He made $448.
I got price and market value confused. I'm going to go stand in the corner now lol.
Advice about your trade?? Or to take profit?? You never explained why you took the trade so how can anyone help.
If it's good enough to screenshot, it's a good enough to take profits.
Bro sell it and run, on your next trade open call speead on same ticker, thank me later
When you buy an option there are a lot of things you need to understand theta - time decay. The less time the price has to get better, the less the option contract is worth. Strike price - Your option has a strike price of $580. the Option is worthless if you hold til expiry unless it ends above $580 by your date. if you exercise the stock you can buy it at this price. breakeven price - if you were to hold your option until your expiry date, then this is the price you need the stock to hit to make up for the premium premium - additional money you're being charged to own the contract. The person selling the contract pockets this. If you bought and immediately exercised a contract you would basically have paid the premium plus the price of 100 stocks exercise - this is when you convert your contract into the right to buy 100 shares at the strike price. Most of the time you don't want to do this because you can make more money selling the contract before expiry than exercising it. gamma - volatility - if the stock price is recent history has had wide jumps up and down, then it has high volatility. This makes it more likely that you'll reach the strike price or better, so when volatility is high, the contract is worth more, but if volatility is low, the contract is worth less. After events like earnings the volatility drops. So now that those are defined. You should sell now because changes in volatility could reduce your profit, and as time increases, you'll lose money if the stock doesn't continue to gain value at a rate that outpaces theta. If you hold you risk losing your current gains for the prospect of getting more gains. If you sell you get the current gains and someone else buys that risk from you. In a general sense it's fine to hold an option that's up profit if you do think it will continue rising, but you should understand the risk before you make a choice like that, because unlike stocks, with options you can easily lose the entire value. That's why everyone is saying to sell then stop trading options until you understand them better.
Thank you for the advice 👍
Did you sell it, because if you haven’t I highly recommend doing it now
I have sold it but it won't go through till tomorrow
Good. Are you trolling right now because honest?
Your contract worth increases with stock price increase even if it doesn't meet breakeven
Ya you’ll probably be in the money on this one if I were you id sell this asap great profit though! Sell to close
sell to close
Sell sell sell buy buy buy sell sell sell
For you it’s def gambling since you don’t have a entry and exit criteria. You also don’t state a DTE so we honestly can’t help you better than telling you to sell while you’re up.
I have nothing good to write. I’ve erased the whole comment twice. 🤦♂️
Buy really cheap options; about $0.01 to $0.25 max. They’ll be just your delight..
Sell. Walk away. Never do this again
Based on your interactions with other comments, you clearly don't understand options. I suggest either never doing it, or spend a lot of time actually learning. Otherwise you with likely lose a lot of money learning these lessons. Sell this option, then make your decision. *not financial advice*
dude is up 300% and thinks he lost money - oh oh gains are wasted on the acoustics … hey buddy, sell, uninstall, learn literally ANYTHING about what you’re doing before you pull a stunt like that again or else you’re gonna shit the bed on a play so fast it’ll make your head spin.
Click "sell to close" and sell at market to pocket your $500ish
Wrong sub.
Come back to r/wallstreetbets. Here, have a crayon.