Hey I did experience this exact scenario about a month ago I sold put spread on NVDA and my short put went in the money 7 days before the expiration when NVDA plummet I closed the short position and sold naket calls for the same week but then NVDA rallied my call went in the money so i had to cover it in the herry so i lost big time i would have been better off just to buy 20 shares of NVDA instead and forget about it. Sometimes, this option trading can become very costly.
@Living Stone：Sometimes, when I sell a put option, the price of the option will rise for a few days before it goes down to zero at expiration. I'm guessing it is because the underlying stock price is decreasing toward the strike price, and then when the stock price bounces back up, the price of the option goes down, which is what I want it to do so I can buy it back at about three cents on expiration day. In the worst case scenario the stock price continues to decline below the put option strike price with no chance of bouncing back before expiration. When that happens I buy back the option at a higher price and take a loss. If I catch it soon enough, I can counteract the loss by selling a call option with the same expiration date at a higher strike price, and then buy it back at about three cents to make a profit near expiration.
Snacks: How does the Options Price Change?
Far Out
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$D-Wave Quantum (QBTS.US)$
Added position for QSI and D-wave this morning 😉
Added position for QSI and D-wave this morning 😉
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because most people only share their wins to rub it in here are my biggest losses so far to show that I'm not winning all the time or that I'm some kind of guru or expert trader that never loses markets go up and down all the time the important thing here is correct position size, and risk management. let us remember that the first loss will always the smallest lose to continue holding to a losing position only adds to the pain and doubt about our abilities. its best to live to trade anoth...
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$Palantir (PLTR.US)$ If your favorite store was having a 25% off sale would you buy or say I’m out??!! Until major negative news is released why sell? BUY MORE!
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$Palantir (PLTR.US)$ cannot cross above 68.20..no show today.
clear my put position...
waiting to buy back to close my short position..
dun want to hold for holiday
clear my put position...
waiting to buy back to close my short position..
dun want to hold for holiday
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Far Out
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$Palantir (PLTR.US)$ this should hit about 52 or 53 unless there's some kind of convergence or news or something else I don't know of but what I see is this heading to the 50s
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Far Out
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$Palantir (PLTR.US)$ 60 on the cards. my limit order set at 60 n 50 after that
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So, $Palantir (PLTR.US)$ isn’t off to a great start this year. The stock was at $85 per share at the end of last year, but now it’s dropped to $68. And on top of that, Morgan Stanley just downgraded it to “underweight” with a $60 price target. They’re basically saying the rally’s run out of steam.
Now, here’s the kicker: there’s some insider selling happening. A director sold 800 shares at $76.29, which is about $61,000. Not a huge deal since it’s only a 1% reduction in her p...
Now, here’s the kicker: there’s some insider selling happening. A director sold 800 shares at $76.29, which is about $61,000. Not a huge deal since it’s only a 1% reduction in her p...
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Far Out
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The Biden administration is about to drop one final hammer on AI chip exports before transitioning to the new presidency. $NVIDIA (NVDA.US)$ , which dominates the AI chip market, expressed concerns that these measures could hurt US leadership and global economic growth.
New rules are set to restrict the sale of advanced AI chips from Nvidia (NVDA) and $Advanced Micro Devices (AMD.US)$ to the rest of the world, with strict tiers determining ac...
New rules are set to restrict the sale of advanced AI chips from Nvidia (NVDA) and $Advanced Micro Devices (AMD.US)$ to the rest of the world, with strict tiers determining ac...
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I have three picks for tomorrow that I am going to be adding on to and bringing into my portfolio that I believe will be positively impacted by the socioeconomics of this next presidency and policies that will be implemented.
AMD
I've been watching this stock all 2024 and was bearish the whole year on it. My stance has changed now seeing the behind the scenes MONEY MOVES that they are now taking to compete both in AI and in Data Centers! This is an am...
AMD
I've been watching this stock all 2024 and was bearish the whole year on it. My stance has changed now seeing the behind the scenes MONEY MOVES that they are now taking to compete both in AI and in Data Centers! This is an am...
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