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After alot of vidoes and reading I finally bot my first Option. I bought DGNS Nov21 $10C at .38 it is now selling .30 stock is $10.17. Question in the little box it says I am in the money, but when I go to sell it says I will lose money what am I missing
I believe I asked my question in wrong area
sold today for a profit, yea
when you get an option thats say a month or two out that generally runs in the direction you got it for but it falls some, do you cut or hold out? Thats been my biggest issue is watching it get more and more neg but still have time …but sell then it gets to the price where my call woulda made money. Just curious what the more experienced do in these situations
If you have a month or two left, I would watch and see if it recovers - pick a point of no return like a stop loss and if dips below - sell it. It really comes down to your risk tolerance. If the underlying stock in just on a decline and you except it to drop further - cut the loses
That’s a personal risk tolerance question. If you believe in your thesis by all means hold until the conditions change. If you’re treating it like a scalp then you should cut.
Earlier this morning, someone on the trading floor asked about a couple of weird candles with spy and I was curious about that general idea as well. I had seen something a while back about these being market maker signals (see link below), but I spoke with JB about it and he said it was pretty much nonsense. So that helps to disregard bad information, but would you happen to know what why we sometimes see really large spikes or dips on candles that are way far out from the trending price?