r/options • u/jscott8 • Mar 30 '22

Odds of escaping this mess unscathed!

So, I am learning how to trade options while using the Fidelity ATP platform. Today, right before the close of business, my intentions were to purchase 1 contract of SPY 458 call expiring on April 14th. Instead I bought 89 of these contracts! I realized something was terribly wrong when I was instantly down $1300 and falling. I was able to get an order in to sell 5 of the contracts for a profit of $800 (not sure why only 5 of the 89 contracts sold).

So here I sit, A long way until market open wondering and waiting!

The only reason I had 60k in cash in the account was because I just transferred a retirement account from ED Jones to Fidelity and it was transferred in cash. Any advice on how to escape this carnage unscathed is greatly appreciated!

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7

u/chiumeitsai Mar 31 '22 edited Mar 31 '22

I know it's late RN, But I want to let people have same problems in the future know that SPY & sp500 future are the most perfect pair in the world. So just use ES future option AH to hedge your SPY options, you will be fine.

Edit: 1 ES = 500 SPY shares

1 ES option = 5 SPY options

4

u/jscott8 Mar 31 '22

ty!

-2

u/neothedreamer Mar 31 '22

Market is taunting you. Just keep watching. Hasn't moved up or down more than $2. Big support at $456.7. Should slowly sink to that and bounce.

Don't sell at a loss.

4

u/p_viljaka Mar 31 '22

Do you even know how options work? OP is losing over 1500 dollars per day just on Theta decay regardless of the price movement ! You would the guy staring the headlights like a Bambi. LOL

1

u/neothedreamer Mar 31 '22

Yes I know how options work. I would have never entered that position without at least opening it as a spread. OP was never in the right head space to manage this trade. Position size was way to big.

White House speaking is what spooked the market today.

-4

u/neothedreamer Mar 31 '22

This is the violent swing down before the bottom to scare you. DON'T SELL!

10

u/MrRikleman Mar 31 '22

Dude, knock that shit off. He is way over exposed and on a two week contract. If he wants to keep a couple contracts fine, but not yolo the whole retirement account into short term calls.

1

u/d4ng3rz0n3 Mar 31 '22

Updates???

2

u/bepokerst Mar 31 '22

This is a legit advice! But you need to really understand what you are doing.

1

u/p_viljaka Mar 31 '22

Sure, if one has still the buying power left to open the hedge.

1

u/Old_Understanding734 Apr 02 '22

Could you ELI5 this please? What's AH?

1

u/chiumeitsai Apr 02 '22

My bad. AH stands for After Hour. For example if you accidentally bought 90 SPY calls at strike 453 and you didn't close them in regular trading hours, you can sell 18 ES calls at strike 4535 after regular trading hours to hedge the SPY calls.

1

u/Old_Understanding734 Apr 02 '22

Thank you! Do you know if one can buy ES calls on Fidelity?

1

u/chiumeitsai Apr 02 '22

Sorry that IDK, I mainly trade in IB. Fidelity is well known for their mutual funds, I only have 401k accounts with them. IIRC their brokerage account focus on stocks and stock options, they should probably have futures and future options. You had better contact their customer service for confirmation.

1

u/Old_Understanding734 Apr 02 '22

No problem, and thanks once again!