Investment BS Thread - Stocks/Futures/Mutual Funds/Bonds/Commodities/Options/ETFs/401ks/Etc

Leverage. You control the right to buy or sell 100 shares.

 

Nice gains I sold my fb calls the other day..... oh well gains are gains

 

The calls I just sold for 2 are now 3.39 so I'm missing out on quite a few donuts myself

 

Oh, and make sure you close all your contracts before the market closes on the expiration day...Otherwise you'll get in big trouble with your broker...unless you have 50K sitting in the account to buy 100's of shares of FB

 

I'm still crying in my honey nut cheerios over closing my AMD calls for the 21's at $550...they went to $3,800

 

Don't think I'll ever let contracts expire, but that is one question I had. It's close of market on Friday not open right?

 

Friday at close. Best to be out early Friday or the margin team will step in if you don't have the funds to exercise the contract.

 

Sometimes you may want to exercise the option. Last week I had 2 NVDA 420 calls that I exercised in my IRA. It was trading at 500 at the time. The week before I lost 200 shares when I got assigned on 2 covered calls at 475. I got those shares back a week later at a cheaper price. Plus I got payed to sell the covered calls. There's a lot of ways to make money with options. There's also a lot of ways to loose money. lol

 

Rude!

 

and liquid funds right? It won't count if I have the funds but they're tied up in other securities?

 

I bet they'll sell your stocks for you if they need the money to cover anything. Just a guess but my brokerage will do that in some situations.

 

Oof, only good for day? I guess makes sense - options are typically more involved, where as I can buy, say, TSLA and do a "set it and forget it for 3 months" sort of thing if I really wanted to.

Did you make money? Were you happy with the money you made? If so, don't look back.

Curious - so, it's 100 shares, you go out 0.01 out of the money. So, you're "out" 100x (assuming 100 shares) .01, so $1, plus the cost of the contract (which is what, about ± 30 bucks?), right?

That's the spirit - take your donuts when you want your donuts, and be happy with your donuts. Greed can lose your donuts.

PS that -2.93% is ZOM. @TreeFortRichard that's your claim to fame right?

 

Correct. You have to have that amount of settled funds on hand. Last week when I exercised those NVDA $420 calls I made sure I had 84K in my IRA.

Only if you get a margin call or don't have the funds to exercise options at expiry. Brokers can't sell securities in your account otherwise. They will not sell funds to cover he option contract. They will sell the contract itself before expiry.

 

Just like that, Smith and Wesson is up 12% today. Looks like they are still doing weird stuff with the share price.

 

Good advice
I have looked back, and it's a lot of donuts I left on the table
I'm just going to console myself with the fact that my 10/16 call is up 620%

 

My broker threatened to sell stocks I held when I had a free ride violation. I corrected it with cash before it got to that point, but they told me they'd do that if not corrected. I was just guessing on options, I don't understand them at all.

 

Options only trade during market hours...that's why it's only good for the day. It doesn't matter if you have a stop loss and the stock drops after hours. It would close your position at market price at open far below your stop loss...

 

JezFnC come on Ford...I just need about $7.20

 

Got this email from webull this morning. So Wednesday before a call expiring on Friday.