I panic bought 5 Calls at $30 9/19exp for 3 bucks each when the stock was at $27/$28-ish. I didn't know anything about the stock at the moment and I always do my research but like i said… panic bought because I felt like I might be missing out like I did with CDTX.
Next day, I lost about 50% which happens but didn't know enough about the stock to have much faith in it. Once it gained a little bit back after a day or two for the option price to techie a little enough to cut my losses, I sold. (Because I didn't expect the stock to keep going up)
I lost a little under $400 selling early and if I would have just held for a few days. The options are going for over $8 each.
Shoulda coulda woulda if I just waited a day or so more.
https://i.redd.it/jb92fbqnygof1.png
Posted by Educational_Pie_9572
4 Comments
its not worth your time grieving over profits you didnt make; thats gambling. therell be a next time đ
Yeah it happens to the best of us. Youâll get them next time. I wouldnât dwell too much or too long on this so that it doesnât affect your next decisions.
Only remember it could easily have gone the other way.
I panic bought DeFi at 3.82 and sold around 3 for a loss. Itâs hovering around 1.5 now or thereabouts so every time I look at it Iâm incredibly happy đ
You are not trading You are reacting.
When you put on an option, youâre always swapping one thing for another. Premium today versus potential upside convexity tomorrow. Time decay versus the chance of a move. Thatâs the trade.
In your case you swapped $3 of premium for upside in a stock you hadnât researched. So what did you expect? If you donât have a view on why realized volatility will justify the implied youâre paying, youâre just gambling on headlines.
Come at least with a thesis before firing any order: âI think X is overpriced relative to Y, so Iâll own this and short that.â If you come unprepared, the market will punish you every time.
Good luck.
biotech? you got balls, man, i won’t even touch it.