I just lost about 15 k in option trading this week, about 80% of what I saved from my 1st job so far… I said to myself many times after I lost I would stop, buy stock and short out of the money calls but I’m always tempted to long calls naked to try to recover my money but only do a bigger mess Everyone around (including me ) is dissapointed, all I can think of 24/7 is options , I can’t seem to focus on my l2 studies, at work or at anything else… That;s awfull~ Any one went through something like this?
Isn’t the whole point of trading options to risk minimal downside for a lot of potential upside??
ouch. what do you mean by “long calls naked”?
Buying call options without having the underlying… Was that the wrong terminology?
IMO trading options is suicide with only $20K. And why are you investing your savings right now - get ready for the saying of the year - given the economy
brazilatz Wrote: ------------------------------------------------------- > Buying call options without having the > underlying… > Was that the wrong terminology? selling/writing calls without the underlying is called naked position. Buying calls means you have a right to exercise the option if stock price goes over the strike price. The maximum you can lose when you buy a call is the call premium. Buying call is not a naked position.
Thanks man, can’t even think right right now… What I meant is I straight bought calls
brazilatz - I’m with you…I love options. You are learning some big lessons (hopefully). All the books in the world on options can’t teach you what a few bad trades can. Learn from your mistakes - you’ll get that money back. Just a tip too - dont’ be buying too many young options, the theta will kill you as a buyer. (I’m guessing this is one of the mistakes you have made).
Did you sell out your positions or something to lock in the loss? There are still a few weeks to option expiration this month maybe you’ll recover a bit, although premium is disappearing quickly now.
Yes I did…and this is BOVESPA by the way, I’m in Brazil…this last time I bought it yesterday dor 0,28 and sold it for 0,16 today…its probably gonna turn into powder, as we say here
Brazilatz, Been there, done that. If your taking these exams, your goal is likely to make a decent bit of money in the future and you need to keep your eye on the prize. 15k is probably alot at the moment, but if you were playing with options you understood the risk. Use this situation to your advantage, and focus every bit of your attention on passing the next level to make up for your blunder. I took my initial loss, and turned it into some serious studying for a 4 months. I passed with flying colors. I actually made the money back soon after the exam, but I have NEVER NEVER let myself get nearly as into it as before. I keep an eye on it, but I know what my real goals are now.
Hey, thank you very much srwarrington , I feel better Gonna focus on that L2 now, the past is history
You can buy gold with your remaining 20%, using a 3:1 leverage and you’ll make it even before you know it.
If you were a L3 candidate you would have known not to put all of your assets in options.
brazilatz Wrote: ------------------------------------------------------- > Yes I did…and this is BOVESPA by the way, I’m > in Brazil…this last time I bought it yesterday > dor 0,28 and sold it for 0,16 today…its > probably gonna turn into powder, as we say here What’s your strategy? Are you just buying OOM calls? That’s going to be extremely volatile, and without a large bankroll – gambler’s ruin awaits. Perhaps you can trade with play money until you get a better feel for managing risk?
Good encouragement by srwarrington!
addicted to porn…