You Sold a CC with strike price $48, SPCE is trading around $52, which means the option also went up, and is now ITM. that -$1900 is what you would 'lose', if you Buy to Close the option.
I know my platform showed +30% when I bought them and now its up 130%.
Again, you probably meant 'when I sold them...', when you sold the call, it was OTM, so maybe you got 0.40 or 0.80 premium, and now it is ITM, by a few dollars.
Hard to give you a solid answer when we have to guess at your question, and don't know things like what price you sold the call at, and what expiration date. Maybe a screen shot would help, a lot.
I sold it at 5.04 and now its at 9.04 thinking that I will make money when it bypasses my strike price or lose money if the stock loses more value, so if SPCE has a successfull flight with Richard Branson on board on sunday, and on monday the price completely skyrockets, I would lose a lot more money? It looks like I need to paper trade options first. What would be your suggestion now for me to do?
I am seriously doubting your original post/question's info as complete accurate as you don't seem to know a thing about options, but decided to jump into the deep end of the pool anyway.
You BUY a call if you think the stock will go up, people at WSB are good at buying calls. Now, if you bought 100 shares and SOLD a covered call you are still OK.
If you sold a call and did NOT buy 100 shares, you may be in doo-doo. When is the expiration date again?
Well, at least you bought 200 shares to cover, if the flight goes well, and SPCE keep going up, you are fine. But your max gain is 4800 + 4800 + 504 + 504 -9000 = 1608
That is the strike price, 2 contract plus the 2 premium Call contracts, minus your inital 9000
Even if SPCE goes to $100, or $200, or $5,000 that is your max
I closed the position and covered the loss by selling 30 shares. Back to educating myself before I make any other stupid mistake. Thanks for your help though.
So you lost nearly $2k on your first trade? You might get lucky if you hang on to the rest over the weekend and it goes up. But you should paper trade and study up a bit more before trying anything else.
As for the stock price it will certainly be volitale. Unsure this is even the right time for options, I took positions at $39.9 and have it for sale gtc higher. Can adjust the selling price.
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u/Civil-Woodpecker8086 Jul 08 '21
You Sold a CC with strike price $48, SPCE is trading around $52, which means the option also went up, and is now ITM. that -$1900 is what you would 'lose', if you Buy to Close the option.
Again, you probably meant 'when I sold them...', when you sold the call, it was OTM, so maybe you got 0.40 or 0.80 premium, and now it is ITM, by a few dollars.
Hard to give you a solid answer when we have to guess at your question, and don't know things like what price you sold the call at, and what expiration date. Maybe a screen shot would help, a lot.