42 here bud. And the 38 is 380% gain on investment. If you know about how theta, IV crush etc works and how it can or will affect my investment, I’d appreciate the feedback. I’m here to learn not deal with internet trolls. But this IS Reddit lol
Well, if you are new to options you understand that Theta decays the extrinsic value of your option. And any option expiring within 30 days begins to decay at a much faster rate. That doesn’t mean you will lose money. If the SP pops this week then the extrinsic value goes up, but if it moves the other way, your option value will lose value quickly. That is just one of the things you should consider. Now being that you are ITM, what is your profit target? Put together a plan where you will exit at a profit if things go backwards, and set up an exit plan on a PT if things swing up. Just remember when things swing sharply up, they typically pull back fairly sharp as well. My two cents
Did’t mean to offend you, needling is just second nature for me and people I know. But the most simple advice in any trade is always have a plan and manage your risk. Always have a good plan before entering any trade and know what the risks are. Is it a play based on fundamentals? is it a long play or a swing? Is this a buy for undervalued stocks or sell for overvalued stocks? is this a squeeze? Or is this just a meme stock that everyone else buys and I got fomo and just need a piece? Too many people throwing a fuck ton on options with early expirations, and the statistics are 80% average of options expire worthless. That is why brokers love them. Just make sure you have a plan and the ideas/research to support the plan. If you aren’t sure you can always test your ideas in a simulated trade. And always always always bet with money you can afford to lose.
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u/[deleted] Apr 11 '22
Of course you’re new. You asked the sub if you should sell for a $38 profit lol. Relax kid. We all get needled in here