$Costco (COST.US)$ 4/17 strike 320 call option buy to close ...
$Costco(COST.US$ 4/17 strike 320 call option buy to close right before close a regular market that way you take no risk in the option bought money before tomorrow's earnings
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Jack421 : how to “buy to close” a call option?
Trader-101 OP Jack421 : what that means is you by just a minute 2 minutes up to 5 minutes before the market actually considering at 4 by doing that what you're doing is you're doing any chance of you taking a loss before today and tomorrow that way you're at a zero balance come tomorrow and if they do great and pre-market you'll know about it ahead of time and if they don't then you sell it on market Open and you take no loss
Jack421 : Got it! thanks
70087458 Trader-101 OP : That really confuse me bro... for ex, you buy a call option right before market close, then Costco had a tough earning call and stock price is going down, tomorrow pre market is already down like 10%, even right after market open, you cannot sell the option at the same price like when u bought the call. It will be like 90p off, am I missing anything here?
70087458 Trader-101 OP : How come you take no loss?
Trader-101 OP 70087458 : no you won't be able to sell it at that same price but options move just like stocks off of buy and sell volume so if a stock not being bought or sold pre-market it doesn't move quite as quickly when it opens now argues everyone's going to be trying to do the same thing but if you're one of the first to get yourself in and have it already pending as soon as market opens you going to minimize your intentions so it could have been a 50 60% loss now doing it this way it's going down to 5 maybe 10%
Trader-101 OP 70087458 : well I was voice texting it shouldn't have been no loss you're taking very minimum loss on chances are you will take some type of law just for the fact that everybody's going to be trying to sell it the same time but it moved just like a stock would off of buy and sell volume that's how an option moves as well now obviously if option doesn't move post-market or pre-market it's not going to move so when market opens now you're taking a chance at a cook Gap a little bit because everybody's going to try to sell at the same time but by being proactive and actually having your order pending ready to go as soon as market opens you submitted your minimizing your chances of a big loss
70087458 Trader-101 OP : I see what you saying now. I never try to sell the option at the beginning, you are saving money for me now thank you!
Trader-101 OP 70087458 : I mean you don't want to sell it at market price anyway because if you do that it goes to the first person offering a price what if they're offering is only a pen I mean market price doesn't guarantee you any set price they can sell it for whatever they want but if you set a limit sell a price they'll just do it for about 5% above with the actual prices so if you're selling an option and the price is $3 you're going to want to sell it for put 275 now you'll still get the best execution price flight this gives you an opportunity case of gaps a little bit and give you a room to still get it executed without them jumping your sell order
Jack421 : How about buying a reverse option immediately at market open to lock the loss if you find the pre-market is not on your side?
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