TSLA
Tesla
-- 431.660 RGTI
Rigetti Computing
-- 17.0800 NVDA
NVIDIA
-- 137.010 PLTR
Palantir
-- 79.080 LAES
SEALSQ Corp
-- 9.080 
The Harsh Reality of Options: My NIO Call That Went Worthless ๐ธ
Two months ago, I bought 70ย $NIO Inc (NIO.US)$ September 20, 2024, CALL option with a strike price of $6. On the day of expiration, NIO was trading at $5.28, making my option worthless.
Honestly, Iโm battling with my emotions over this one. Itโs been a real struggle, and it feels disheartening to watch the stock skyrocket just days after my option expired. Seeing the "what could have been" play out in real-time is toughโitโs the kind of moment that tests your resilience as an investor. ๐
This is the hard truth about options tradingโyou need a strong heart and a high risk appetite. But high risk means bigger losses, and this was a classic case of bad timing
This is the hard truth about options tradingโyou need a strong heart and a high risk appetite. But high risk means bigger losses, and this was a classic case of bad timing
๐ก Key Lessons from My Experience:
Strike Price Matters: A call option only makes money if the stock price rises above the strike price before expiration. My call option expired worthless because NIO was below $6 on that crucial date.
Time Decay: As expiration nears, the value of an option diminishesโeven if the stock price is climbing. I faced the harsh reality of time decay as my option lost its value entirely.
Missed Opportunity: If your call option expires worthless, only for the stock price to jump afterward, it means you missed the profit window. Timing is everything in options trading, and this time, I got it wrong.
Options trading is not for the faint-heartedโitโs a reminder that even the right stock direction can lead to losses if timing doesn't align. ๐๐
Have you faced similar challenges with options trading? Letโs share our stories and support each other through these emotional ups and downs!
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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101667935 : Thank you for sharing your takeaways!
Tan_Talk_Sense OP 101667935 : still licking on my what if I bought an option expired in 2 weeks later wound
RiotMaraMan : What was stopping you from rolling your options for another week instead of letting it expired worthless?
Look for the roll functions and learn how to roll your options.
RiotMaraMan Tan_Talk_Sense OP : I hope you know how to continue to roll your options to 1 week or 2 week or 1 month etc instead of letting it expired.
MD Murcalin Tan_Talk_Sense OP : $MAYBANK (1155.MY)$