cgh1999 said:
Heineken-Ashi said:
cgh1999 said:
El_duderino said:
Up almost 200% on a 1 dte. What do you think?
That option value is smaller than the change in my couch cushions. If it goes to zero, oh well. For the majority of my money I have a clearly defined strategy. That option was 100% a gamble. I think AMZN is up $10 tomorrow. Which makes it 4-5x. Or it's 0.
If it's so insignificant to you, then why only take 1? It leaves you with no optionality. Buy 2 contracts. You would have sold one already to get risk free + baked in profit. Now you can truly gamble the other one away and not have to risk losing anything. And if both would have lost.. well.. it's just the change in your couch cushions, right?
You're right...and that's what I normally would do. I bought this one so i had one and was bargain shopping thinking it might drop a bit more. Looked up and it had already doubled.
I honestly wasn't posting trying to make a big deal. Was looking to see what people thought of the stock for the short term after earnings. I thought their numbers should have resulted in a big up day today and was betting on a rebound.
And I'm just trying to help you. Options trading involves.
1. A plan. Target and timing. If stock is $255 and option is $3.35, you need $258.35 one day later to just break even. $261.70 to 2x. If you aren't playing for at least a double on calls, you're risking too much for far too little gain.
2. Risk management. 1 day gives you no time to cut a loser. So the reward has to be worth it. I need 3x minimum to play 0DTE or 1DTE. And I never use more than 2% of my account value on a single trade. You did good keeping the okay cheap for you. Buuuut.
3. You never ever ever just buy a single call. Options have so much risk built in. Majority of options traders lose money over the long-term. Along with the first two points, you need at least enough size to create optionally. You have to be able to pull your risk out upon initial success. Then let the rest ride.