The trade outlined in post #1 has been filled. Time: 15:48:33 ET
- GOOGL at $548.45.
- Bought 1 April17 562.50 Call at $0.77.
- 4 days to expiration.
GOOGL - April17 OTM Calls
- Thread starter OTM-Options
- Start date
With GOOGL down 2.2% this trade will more than likely expire worthless. The puts are doing OK, the "strangle" counterpart to my calls was the 535.00 Puts at $0.80 - the bid is now $4.10. I didn't buy the puts though, only the calls on this trade.
EDIT: This trade is a good example why I don't like Debit Spreads. They don't protect you from the downside and they severely cap the upside.
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OTM-O,
There are several good ways to trade Debit Spreads (I prefer Credit Spreads, but they are essentially the same thing). You just haven't stumbled upon the right way. Doesn't mean all Debit Spreads are bad... just yours
There are several good ways to trade Debit Spreads (I prefer Credit Spreads, but they are essentially the same thing). You just haven't stumbled upon the right way. Doesn't mean all Debit Spreads are bad... just yours
The trade outlined in post #1 has been filled. Time: 15:48:33 ET
- GOOGL at $548.45.
- Bought 1 April17 562.50 Call at $0.77.
- 4 days to expiration.
Looks like this call is worthless. Did you get out already or just leaving it there?
I sold it today at 10:46:49 AM ET for $0.05, after commissions I get $0.00. I prefer to sell even for a penny and get nothing than to let it expire worthless because:
- I want to clear it from my account or else the following Monday and Tuesday it still shows up in my positions - even though the contract has expired.
- My broker (BMO Investorline) gives me a "Trading Credit" for every trade completed. Expired options don't count.
- Eliminate the risk of auto exercise, not so much in this case though.
Good thread on the risks of auto exercise with a long OTM call position on expiry day: Margin Call on an IB IRA account (Need Suggestions)
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FXForex how you doing man ? Still playing the lottery with these otm options, ha ?I sold it today at 10:46:49 AM ET for $0.05, after commissions I get $0.00. I prefer to sell even for a penny and get nothing than to let it expire worthless because:
- I want to clear it from my account or else the following Monday and Tuesday it still shows up in my positions - even though the contract has expired.
- My broker (BMO Investorline) gives me a "Trading Credit" for every trade completed. Expired options don't count.
- Eliminate the risk of auto exercise, not so much in this case though.
Good thread on the risks of auto exercise with a long OTM call position on expiry day: Margin Call on an IB IRA account (Need Suggestions)
OTM-Options,
Looks like your directional calls were correct but the short duration did not give you the runway to get there. I trade directional but give myself sufficient time for the trade to play out and to manage it if necessary.
I was also bullish on GOOGL, on April 15 I bought GOOGL Calls and I am sitting on a nice profit. Have not decided whether to take profit as I think GOOGL still has legs.
Regards,
Looks like your directional calls were correct but the short duration did not give you the runway to get there. I trade directional but give myself sufficient time for the trade to play out and to manage it if necessary.
I was also bullish on GOOGL, on April 15 I bought GOOGL Calls and I am sitting on a nice profit. Have not decided whether to take profit as I think GOOGL still has legs.
Regards,