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coliozenobio OP t1_j1te15v wrote

Reply to comment by AC1114 in Just bought LUV puts (all my homies hate southwest) by coliozenobio

https://preview.redd.it/wgtct5fucf8a1.jpeg?width=1170&format=pjpg&auto=webp&s=6e01e39d358c5615f4112d22df283090127e2d40

Thoughts?

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Nihaohonkie t1_j1tei58 wrote

They won’t fill at open as LUV will most likely be down already. Nice try

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coliozenobio OP t1_j1temjr wrote

How would you solve this problem? Buy lower at open? Buy lower now? Different platform even?

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mytendies t1_j1tewkw wrote

Market order in the am

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coliozenobio OP t1_j1teyij wrote

Epic, 6:20am alarm set

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ImmenatizingEschaton t1_j1tf75w wrote

Dude market orders can literally be anything someone types in as an order and you will be forced to purchase at that price. If you are gambling then do it. If you care about your money don’t.

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coliozenobio OP t1_j1tfcj6 wrote

I can just not exercise the put options, no? Then I’d just lose the contracts I bought (about $100)?

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ImmenatizingEschaton t1_j1tfvzb wrote

You don’t understand how this works. Don’t do it.

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coliozenobio OP t1_j1tg7an wrote

I’m pretty sure I understand… if I’m wrong about LUV, I would let the contact expire. I would not be forced to purchase at a certain price. I would lose $$ I spent to buy the contracts (total of about $100)

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ImmenatizingEschaton t1_j1tgsqp wrote

You don’t understand because the price is set at market, meaning literally whatever price someone happens to be selling the option at the time your market order executes. THAT is what you are risking.

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Outof_ITM t1_j1uhcd1 wrote

Oh boy, this is going to be fun. Please post a follow up to this.

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Peppa-Piggie t1_j1tp7b1 wrote

You never want to exercise. Lose out on value from IV.

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Bipolar_investor t1_j1tp9io wrote

Get more time. The strike price may be alright, bit you need to factor in a lot of things, including markets posting a giant green dildo going into year end

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alienatedframe2 t1_j1ujghb wrote

I am new and tried this as well haha. Would have been genius, if the bid price didn’t spike immediately upon market open.

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