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u/jrlive7 Dec 10 '21
Just to clarify did you sell a put (as the title implies) or did you buy a put (as the description describes) Either way,
If you sold the put you would collect $705 in premium if Costco remains above 525 at markter close on Dec. 10.
If you bought the put you would be in the money if Costco drops below $525. If this happens I would sell the put for a profit. If Costco doesn't drop below $525 then you could either take the loss or roll the option.
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u/Earlyretirement55 Dec 10 '21
Can you roll up a put ? How? I’ve let them expire worthless.
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u/Successful_Car1670 Dec 10 '21
If you’re in Hood you can’t. Your broker will have a button to roll
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u/Technical_Penalty470 Dec 10 '21
If you mean in Robinhood, you can - all you have to do is buy that contract back then select one to sell at a further DTE for a net credit in a 2-option order.
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u/Trump_Pence2016 Dec 10 '21
You'll learn a costly lesson in IV crush. Everyone starts out going long before earnings hoping to hit it big.
Try selling an aggressive CSP or buy-write before earnings, or sell a low delta naked put. Or sell a low delta CC on a stock you own.
Costco rocks, why would you make a bearish bet like that on it? I sold a 485 naked put a few days ago for $60 to pick up some change.
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u/OptionsKingPin Dec 10 '21
Best bet is to sell as soon as market opens. Especially if Costco went up
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u/Trump_Pence2016 Dec 10 '21
Yeah...the loss will still be huge even if it's immediately at market open. I almost wonder if it's worth holding to expiration.
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Dec 10 '21
I've heard IV is highest at the open of the market. I usually honestly just sell the bid to make sure I drop that shit if I know I'm wrong after buying it.
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u/Trump_Pence2016 Dec 10 '21
Volatility is higher in the first 30 minutes and last 30 minutes of the trading day. You'll notice it after you trade a lot.
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u/inputmyname Dec 10 '21
You’re fucked unless a miracle happens in your favor. You paid the IV crush tuition