Bought a call for 4ea. of our 10th pick @ 35.00 due mar.15 2019, am I stupid?? Trying to learn options. Thanks for not being too brutal.
While the bounce back in the volatility may save you in this instance, you bought far too little time to where the option has to almost instantly move in your favor, thus reducing your probability of success greatly. Also, the time erosion on options erodes the most in the last 30-60 days. So you've got time erosion working against you, big time. I'd urge you to first check out my recent article.
And secondly, I'd urge you to check out my ebook, which goes into much more detail. What you'll learn in these two will help keep you out of many of the potholes along the options road.
When buying options you need LOTS of time on the contract and when initiating sells (selling to open), you want 60 days or less so that the time erosion works in your favor.
So stupid is the order of this day for me, RIGHT?
While I fully understand and support people who want to learn more about investing through options, I am new to investing and in executing my own buys and sells in the stocks we own currently in LI and previously in UWR. I prefer to stay in the safer zone of our current portfolio as it is. I hope not too many unsure investors do not get too caught up in the possibility of even bigger returns until they fully understand what they are doing. I am all for learning...just be careful!!!
does anyone have an opinion on whether the call option might be sold in favor of purchasing another call option with a much longer term expiration?