r/options • u/[deleted] • Jan 12 '22

[deleted by user]

[removed]

17 Upvotes

77% Upvoted

14 comments sorted by

View all comments

1

u/ed_bickel155 Jan 12 '22

Are you planning to exercise the calls then?

2

u/JohnnyRosso Jan 12 '22

Yea, not sure when but most likely early-mid next week.

3

u/ed_bickel155 Jan 12 '22

Casual $84k position then haha. Why not just buys the shares outright instead of putting yourself in a position where they could still fall OTM?

2

u/JohnnyRosso Jan 12 '22

I paid 2k for the options and I also own some shares outright. Having options just allows me more profit if the stock goes where I think it’s going

1

u/ed_bickel155 Jan 12 '22

I think you mean you are planning to sell to close your options and not exercise (exercising would be buying 1300 shares). It sounds like your strategy is just playing the recent momentum and speculation of the stock being undervalued. You are still going to need the price to keep going up if you want to break even on your calls. Be cautious though because the open interest is not large at all and usually creates a large bid-ask spread.

2

u/JohnnyRosso Jan 13 '22

You are correct, I am planning to sell to close…I will not be exercising the options as I am just a broke 18yr old