First time trying options didn’t turn out well
Before market closed today I went and bought some nvidia calls thinking nvidia would continue rising but instead it dropped. I know I’ve made many mistakes but what should I do with this call?
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wahlao : Either you double down next time, or don't buy options. Choose wisely.
Effendy : Considering that it’s going to expire tonight, you could;
1. Quick sell it at open hours to get fractional value of your premiums back.
2. Monitor the open hours and when you see NVDA price raise up, sell it then to get back more from your option.
3. Your option is currently ATM which means if it maintains 146 or higher, you would be assigned 100 shares which you can hold (if you have sufficient cash to cover the call).
102 : That’s a lesson my guy, don’t do options
Dannymite : You could also do a rollover to another expiration date.
赚、牛 : Do not start options near the expiration date. If the market opens sharply lower tomorrow, the value of the options will also plummet. Unless there is a sharp rise before the market opens. Otherwise, losses are inevitable. It's a lesson learned.
aurelly OP wahlao : yeah learnt my lesson this time![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
aurelly OP 102 : I know now it was just too tempting before![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
aurelly OP Dannymite : Haven’t heard of that before, how does that work?
Effendy : Options is not a bad thing. If you expect the long term value of the stock to raise, using a call option to buy it at a price using options is great.
I read a great analogy where options is like when you place a deposit/option to secure the house you want to get at the price.
If you buy 1DTE or 0DTE or same week expiration options to do a quick “flip”, then that’s where it becomes more of a “calculated” gamble. That’s where all the big money makers aka hedge funds play and us small retailers either ride with them or get burnt.
aurelly OP 赚、牛 : yep lesson learnt for sure![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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