Apple Option expiring on 17 March.

Alver · Mar 13, 2023

Hello,

Need your advice. I am not experienced in options. I have an option - see below in bold for the details. It was procured for me by agent about 2 years ago. I do not work with that agent anymore. I am loosing money on it and it expires in 4 days. I use IBKR platform. Is there a way I could extend the option till 2024 or even 2025? Maybe Apple goes to $200 or it is better to let it expire.

SYMBOL QUANTITY MULT COST PRICE COST BASIS
AAPL 17MAR23 200.0 C $ 2.00 $ 100.00 $ 6.96 $ 1,391.25

newwurldmn · Mar 13, 2023

Alver said:
Hello,

Need your advice. I am not experienced in options. I have an option - see below in bold for the details. It was procured for me by agent about 2 years ago. I do not work with that agent anymore. I am loosing money on it and it expires in 4 days. I use IBKR platform. Is there a way I could extend the option till 2024 or even 2025? Maybe Apple goes to $200 or it is better to let it expire.

SYMBOL QUANTITY MULT COST PRICE COST BASIS
AAPL 17MAR23 200.0 C $ 2.00 $ 100.00 $ 6.96 $ 1,391.25

No way that option was bought 2 years ago.

Alver · Mar 13, 2023

I do not remember exactly, but it was bought in 2021 for sure.

Can i extend it ?

ZBZB · Mar 13, 2023

Alver said:
I do not remember exactly, but it was bought in 2021 for sure.

Can i extend it ?

you can sell it and buy another one, you can even do it as one trade, I think, at IB. You will have a loss for capital gains purposes.

smallfil · Mar 13, 2023

Alver said:
I do not remember exactly, but it was bought in 2021 for sure.

Can i extend it ?

Your call option on AAPL at $200.00 is already worthless. It is way out of the monies and there is no monies left for you even if you try to sell it. AAPL looks like it is stuck in a trading range. I would not touch it until, it either breaks out higher or breaks down lower. When you know the trend clearly, that is when you would buy an option. Options are wasting assets. You have to have the direction right and your stock has to move by a large amount to make monies, if you trade options. Your option dated March 17, 2023 will end on that date and vanish from the option chain and expire totally worthless.

newwurldmn · Mar 13, 2023

i take back what i said. the option traded through 2021.

you are out the money. All you can do is buy a new option or not buy one. But the premium you paid (6.xx) is lost.

Alver · Mar 13, 2023

smallfil said:
Your call option on AAPL at $200.00 is already worthless. It is way out of the monies and there is no monies left for you even if you try to sell it. AAPL looks like it is stuck in a trading range. I would not touch it until, it either breaks out higher or breaks down lower. When you know the trend clearly, that is when you would buy an option. Options are wasting assets. You have to have the direction right and your stock has to move by a large amount to make monies, if you trade options. Your option dated March 17, 2023 will end on that date and vanish from the option chain and expire totally worthless.

Thanks. I do not trade options myself. I wish my agent just bought apple stock instead for that amount. i could dollar average it and hold until it goes up. But it is what it is. It is easy for agents to risk with client's funds - that is why i am not using any agents anymore.

newwurldmn · Mar 13, 2023

Alver said:
Thanks. I do not trade options myself. I wish my agent just bought apple stock instead for that amount. i could dollar average it and hold until it goes up. But it is what it is. It is easy for agents to risk with client's funds - that is why i am not using any agents anymore.

In this case it didn’t work out. But if Apple is were 250. You’d be thrilled at the return of those options (43 dollars profit on 7 dollar investment)

smallfil · Mar 13, 2023

I had an ex-friend who used to ask me advice on her stocks, mutual funds. She also, had a financial advisor who lost her monies year after year and yet, she paid him year after year. Amazing. They will listen to a complete stranger who loses their monies year after year, paying him his commissions instead, of learning how to mange their own monies. Then, they wonder why they keep losing their monies?

earth_imperator · Mar 13, 2023

Alver said:
Hello,

Need your advice. I am not experienced in options. I have an option - see below in bold for the details. It was procured for me by agent about 2 years ago. I do not work with that agent anymore. I am loosing money on it and it expires in 4 days. I use IBKR platform. Is there a way I could extend the option till 2024 or even 2025? Maybe Apple goes to $200 or it is better to let it expire.

SYMBOL QUANTITY MULT COST PRICE COST BASIS
AAPL 17MAR23 200.0 C $ 2.00 $ 100.00 $ 6.96 $ 1,391.25

It will expire worthless as the current market price of $151 is way below of your Call strike $200.
But if AAPL had a stock split during that time then things could be different... Haven't checked for that...
Update: the last split was in 2020:
Last Split Factor: 4:1
Last Split Date: Aug 30, 2020

https://finance.yahoo.com/quote/AAPL?p=AAPL