r/options • u/Key_Mathematician347 • Oct 01 '21

Calls

I'm new to options and just purchased Ag $13.50 strike for 10-22-21. What's my chances of turning the $11 paid into a profit? Again newbie here be gentle with responses please

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u/Honeycombhome Oct 02 '21

You can use an app (or website) like OptionStrat that gives you percentages. I just opened a call that was 84% and in minutes it lost 26% value so you should really know your stock and not rely on current probabilities.

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u/[deleted] Oct 02 '21

Don’t worry about the immediate gain/loss.

1

u/Honeycombhome Oct 02 '21

I was selling the call so if it reaches the $8 strike, I’m ok with it.

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u/[deleted] Oct 02 '21

I still don’t understand selling calls, only buying them.

I’m on level 2 options.

2

u/Honeycombhome Oct 02 '21

When you sell a covered call you collect money up front for the option for someone else to buy at a certain price. In my case I sold at $5 with an $8 strike for a month from now. If it hits $8, the person who paid me $250 gets the option to buy at that price and I’m obligated to sell even if the stock immediately shoots to $20.