Beginner help: Call Options

F

Flagada

Good morning - I'm new here! I hope this is the right forum to ask for help.

I bought 600 Call Options expiring Jul 17 for $0.50 ($29,000) they are currently trading for $0.30

The stock is hovering around $1.9 to $2.10 but could dip further or rise rapidly - god knows.

Any thoughts on how I can box in / limit my losses (or profits?)

I've been playing with my IBKR scenario builder but it shows that all my scenarios have infinite losses... So I'm not doing it right.

Thanks!
 
Flagada said:
Good morning - I'm new here! I hope this is the right forum to ask for help.

I bought 600 Call Options expiring Jul 17 for $0.50 ($29,000) they are currently trading for $0.30

The stock is hovering around $1.9 to $2.10 but could dip further or rise rapidly - god knows.

Any thoughts on how I can box in / limit my losses (or profits?)

I've been playing with my IBKR scenario builder but it shows that all my scenarios have infinite losses... So I'm not doing it right.

Thanks!
More...

Are you in SIM, or did you actually buy 600 contracts? And what is the the underlying?
 
Your losses are definitely limited. I wonder if the scenario builder somehow just sees the contracts required to close the position, and reads them as opening a short position (which would have unlimited losses) rather than closing an open position.
 
Obviously I'll be using this as a teaching moment (with $30K...idiot) but what if I "sold the same Call, same period and same stricke, wouldn't I be limited to the spread between the 2?
 
Which strike price did you buy? Looking at the chart, this stock is in a pullback. You can sell a higher strike call to get premium to reduce your losses. Learn risk management. Seems you are taking way too much risk.
 
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