Looks good David, regarding your putting the limit order to close, where would be a good order to place to lock in profits for both when they go south?
Is see I can put a limit order on single trades, though there is not limit on spreads, is there?
Where to set the limit order to close is a personal decision. I've been putting it in for 100% gains, with the understanding I can adjust it up or down later based on market conditions.
Yes, there is a way to place a limit order to exit the spread as a whole. I thought I explained this in response to a previous comment of yours earlier this week, but if you call Fidelity they'll be happy to walk you through it.
Hi David, you sort of alluded to it but I am clueless on the mechanics, especially with a spread.
Based on the SFM spread:
"A call spread expiring on May 19th selling the $36 strike calls and buying the $35 strike calls for a net debit of $0.45. The break-even here would be with SFM at $35.45, and the max gain on 10 contracts would be a gain of $385 versus a max loss of $315."
Would I place the GTC trade at double the net debit to 0.90 for the 100% or ?
Sorry, I have been extremely busy today. AFAIK, you can only set one limit order at a time, so I have set mine for a ~100% gain. If we get close to expiration and the stock is still above the strike price, then I'll adjust and take what I can get, but you should go into speculative options trades with the understanding that you may lose the entire amount you put in if we get it wrong. I wouldn't treat them like stock purchases where a stop loss order would make more sense.
As I've said before, if you would set a stop at 10% on a stock position, then consider only 1/10th of what you'd put into a stock position into an options trade.
Thank you, though I am not as experienced as you, so what price was the Put set for? 1.65 is 50% higher, 2.20 is 100%. Please give me an idea of what that amount would be based on getting in at 1.10, which I did. Excuse me if I am slow...
Hey Big, You are correct on the percentages. Since this is a debit (you paid for it) you can calculate the 100% as just the double of your money. 1.10 x 100% = 1.10, then just add your initial debit to it so 1.10 + 1.10 = 2.20.
As far as how you decide how much profit you want to set your limit order at will be up to you. Some trades can be quick so it may be best to set a limit so you don't miss a chance to sell it. I entered the same trade as well but I'm expecting it to continue the grind down so I'm just watching it for now (though a 100% gain would be great.)
Looks good David, regarding your putting the limit order to close, where would be a good order to place to lock in profits for both when they go south?
Is see I can put a limit order on single trades, though there is not limit on spreads, is there?
Greatly appreciate your help.
Where to set the limit order to close is a personal decision. I've been putting it in for 100% gains, with the understanding I can adjust it up or down later based on market conditions.
Yes, there is a way to place a limit order to exit the spread as a whole. I thought I explained this in response to a previous comment of yours earlier this week, but if you call Fidelity they'll be happy to walk you through it.
Hi David, you sort of alluded to it but I am clueless on the mechanics, especially with a spread.
Based on the SFM spread:
"A call spread expiring on May 19th selling the $36 strike calls and buying the $35 strike calls for a net debit of $0.45. The break-even here would be with SFM at $35.45, and the max gain on 10 contracts would be a gain of $385 versus a max loss of $315."
Would I place the GTC trade at double the net debit to 0.90 for the 100% or ?
I was hoping someone would answer, on the ALLY, are we putting the limit at 50% higher, 1.65? What about a limit order to stop a loss?
Thanks in advance to anyone who can assist.
Sorry, I have been extremely busy today. AFAIK, you can only set one limit order at a time, so I have set mine for a ~100% gain. If we get close to expiration and the stock is still above the strike price, then I'll adjust and take what I can get, but you should go into speculative options trades with the understanding that you may lose the entire amount you put in if we get it wrong. I wouldn't treat them like stock purchases where a stop loss order would make more sense.
As I've said before, if you would set a stop at 10% on a stock position, then consider only 1/10th of what you'd put into a stock position into an options trade.
Thank you, though I am not as experienced as you, so what price was the Put set for? 1.65 is 50% higher, 2.20 is 100%. Please give me an idea of what that amount would be based on getting in at 1.10, which I did. Excuse me if I am slow...
Hey Big, You are correct on the percentages. Since this is a debit (you paid for it) you can calculate the 100% as just the double of your money. 1.10 x 100% = 1.10, then just add your initial debit to it so 1.10 + 1.10 = 2.20.
As far as how you decide how much profit you want to set your limit order at will be up to you. Some trades can be quick so it may be best to set a limit so you don't miss a chance to sell it. I entered the same trade as well but I'm expecting it to continue the grind down so I'm just watching it for now (though a 100% gain would be great.)
Thanks, learning as I go! Though they are both down today, what a crazy day!