itm option

[clarodina]

Have some questions about option trading about naked p c

How do traders deal with naked p or c going itm? What are the ways to deal with these situation without paying or buyback high premium p or c going itm

 

[OptionGuru]

Have some questions about option trading about naked p c

How do traders deal with naked p or c going itm? What are the ways to deal with these situation without paying or buyback high premium p or c going itm

• What's your "edge" ?
• Without an "edge" you are SOL.

 

[JackRab]

Hmm, ways to deal with this without paying...
Depends on where you live, but I hear South America is a good option....

 

[El OchoCinco]

Have some questions about option trading about naked p c

How do traders deal with naked p or c going itm? What are the ways to deal with these situation without paying or buyback high premium p or c going itm

Translation: How do I not have to take a loss on a losing position I have?

 

[oldnemesis]

Have some questions about option trading about naked p c

How do traders deal with naked p or c going itm? What are the ways to deal with these situation without paying or buyback high premium p or c going itm

Hide your money in the Cayman Islands and declare bankruptcy. Then change your name and resurface as Donald Chump... with a new wife of course.

 

[1245]

Have some questions about option trading about naked p c

How do traders deal with naked p or c going itm? What are the ways to deal with these situation without paying or buyback high premium p or c going itm

What is your concern? This is no different than losing money on any other trade. You have to determine what the most you are willing to lose on any one idea, and cover when that happens.

 

[oldnemesis]

Here's an even better idea:
...........Tell your broker you were just kidding.

 

[ironchef]

As someone new to options, I was in the same boat a few times. I think what you were saying was you "judged" wrong on the direction. In such situations, it was hard to come out whole without losses.

Unfortunately there is no right answers as it is situation specific. Sometimes I rolled out & up high volatility options without paying or "buy back" and hoped eventually my "judgement" prevailed but more often than not I would be better off got out and took losses early.

I don't know if anyone else here has better advices, if so I like to hear it too.

Best wishes.

 

[just_numbers2014]

What are the ways to deal with these situation ....

Take a step back and reasses your stance.
Your outlook for the position has not changed? Roll it out and, perhaps, down for puts, up for calls.
You are not sure? Close it and move on.

As one of the beaten-to-death adages states:"Do you want to be right or make (preserve in your case) money?"

 

[TradeCat]

Often times you'll hear cocky traders on their high horses tell you that they're better than you because they're sellers, not buyers. But they take losses just like the buyers. Cut your losses. Learn from your mistakes and speculate, not gamble.