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Jamma

05/27/2020 22:36

#Options trading Strategies What happens if you buy a sell option and it goes above what your strike price is and your losing money do you let it expire . also do i only lose what a baughtvthe sell option for????
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All Comments(3)

40oz Profit05/29/2020 03:33
If you sold a call you are saying you will sell at that strike price. It's a bearish position typically. If the stock stays below the strike price it won't execute. A naked call is risky because if a stock skyrockets in price you will need to go on the open market to buy 100 shares, giving you theoretically infinite risk. If you have the shares, the person who bought it will just buy yours at your strike price. You have to buy the exact same option you sold to close it out. Or you could let it expire and if it is out of the money it won't execute and you will keep the premium.

Jamma05/29/2020 19:26

Thanks appreciate that ๐Ÿ‘Œ๐Ÿ‘Œ๐Ÿ‘Œ

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40oz Profit05/27/2020 23:23
Did you accidentally sell a put or call?

Jamma05/27/2020 23:29

Do i hold n let expire i baught for like 700$ total but down 1500$ on top of the 700

Jamma05/27/2020 23:27

Yup i accidentally sell a call i think

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Jamma05/27/2020 22:39
As you can see i did one wrong buy accident, Wanted buy not sell. need advice wat to do wether i eat it or let expire. thanks guys

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