Hi there. I am struggling with something and am looking for answers. I have been trading options for a little bit, still very new, but im having a problem. Whenever I sell my option, I almost always lose more money than my chart displays. For example, I will be +$200, sell, and make $200, but when im down -$200, sell, i'll lose like $300. Is there some hidden greek or something im not factoring in? It's very confusing. I'm doing market buy and market sells as my broker stalls sometimes on limit sells. Thanks for any help. I appreciate it.
Need help understanding my option selling.
byu/Hydrospec1 inoptions
Posted by Hydrospec1
3 Comments
It’s because the additional loss is perhaps the % loss of the shares themselves.
Or you’re misreading the sold option pnl. Meaning – if your covered call or cash secured put trade goes negative (shows it’s down in value) in your broker thats actually good.
Market orders are just asking to be taken advantage of. If your limit order doesn’t fill, adjust it until it does.
Please give an example.