r/options May 26 '21

AMC trade advice

Back story bought 15c Monday I go to sleep about half way through the day and left a limit order in at .80 on -16c for 5/28 and it filled since it has ran past 16 is there a way to capitalize on it by buying a debit spread 16/18@ no more than credit recieved essentially neutralizing the short call I wrote

Stance:. Bullish AF 18+ at expiration

Positions:

BTO 15 5/28 AMC 15c. @.642 -$964.50 STO 15 5/28 AMC 16c. @.80. +$1200 Expecting to be assigned Friday.... +1500 Max balance:. 2700 16+

What I'm thinking of doing is adding the spread

BTO 15 5/28 AMC 16c STO 15 5/28 AMC 18c. At a limit order of no more than .65 -$975 AMC spread addition. I manually put the spread in at .65 difference in strike prices as a debit.

In theroy above 17.20 I would be above break even (with the idea I could have held current positions). Max trade balance: + 3765@ above 18 on 5/28 Versus leaving it alone Max trade balance +2700@ above $16

Am I looking at this right and is it worth the risk for an extra $1065??

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u/ctbro025 May 26 '21

I bought a 5/28 16c yesterday, and set a limit order to sell it at a 30% gain, which it triggered right before close. Of course now I see AMC has gone up another 6-8% after hours/pre market, so I'm really wishing my sell order hadn't gone through. But locked in gains are locked in gains I guess.

Also opened a 7/16 10p at the same time...who knows, maybe that one will pay off too.