Another Reason why not to trade with distractions and emotions

Here's what I don't understand about options, and why the guy panic sold his holding?

So he says he made a small investment: He took a flyer on 75 April 18 call options with a strike price of 65 for a dime each.

Then, this week, he unloaded them — at a loss! — right before the news hit; a timing misfire of epic proportions. “I live in Australia, so I am mostly sleeping during U.S. trading hours,” he said. “However, I woke up at 4 a.m. and decided to put a limit sell order of $0.06 on my options to salvage my losses given that only 2 days are remaining till expiry, and went back to sleep.”

Ouch. Arminoxx, in an exercise in self-flagellation, tallied what he would have made had he slept through the night: $50,000 or a 6,000% gain.

So he bought $7.50 worth of call options, with the potential to lose $7.50 maximum, but opportunity to gain whatever the price is at expiry?

Why would one do that? What losses was he "salvaging"?
 
Overnight said:
Here's what I don't understand about options, and why the guy panic sold his holding?

So he bought $7.50 worth of call options, with the potential to lose $7.50 maximum, but opportunity to gain whatever the price is at expiry?

Why would one do that? What losses was he "salvaging"?
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WELL , cant really read the mind of an option buyer. I cant even read the mind of a male or female insurance agent LOL:D:D

Dont know it works with options;
some scale out + in, with liquid markets........................................
 
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Robert Morse said:
Honestly, this is a terrible excuse. We live with distractions throughout our entire life. He was ready to get out and his timing was bad...this time. That simple.
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Exactly. It may not have helped him; but dollar cost average good ETFs, time in , +trend is your friend.
My great mom used to drop by my home, many time spontaneous/unplanned ; i finally told her ''MOM when i working on my computer it could take me half an hour or more to answer the door.''
Its just like my banker dad [ family]told me ''accidents dont just happen son =they are caused'':caution::caution:, :caution::caution::caution::caution::caution::caution:
 
Overnight said:
Here's what I don't understand about options, and why the guy panic sold his holding?

So he says he made a small investment: He took a flyer on 75 April 18 call options with a strike price of 65 for a dime each.

Then, this week, he unloaded them — at a loss! — right before the news hit; a timing misfire of epic proportions. “I live in Australia, so I am mostly sleeping during U.S. trading hours,” he said. “However, I woke up at 4 a.m. and decided to put a limit sell order of $0.06 on my options to salvage my losses given that only 2 days are remaining till expiry, and went back to sleep.”

Ouch. Arminoxx, in an exercise in self-flagellation, tallied what he would have made had he slept through the night: $50,000 or a 6,000% gain.

So he bought $7.50 worth of call options, with the potential to lose $7.50 maximum, but opportunity to gain whatever the price is at expiry?

Why would one do that? What losses was he "salvaging"?
More...

I think he was trying to close them when they still have some values left before they become worthless at expiration, hence "salvage" from total loss cuz s*** was happening and he didn't know major s*** is happening.
 
JSOP said:
I think he was trying to close them when they still have some values left before they become worthless at expiration, hence "salvage" from total loss cuz s*** was happening and he didn't know major s*** is happening.
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But his total maximum loss was $7.20?
 
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