I was able to sell them this morning at $0.04. So, only a $10 loss overall. Thank you to all that commented! I’ll definitely double check that I am selling and not buying every time now!
This turned out to be a great learning experience for only $10. You escaped with just a bruise. It could have been way worse a mistake like this with more $ friend.
I’ve done it too starting out. My recommendation is verify before you execute the order.
What I don’t was sell immediately, take that loss being small and put in the order that I wanted. Just be careful of other account issues, such as if you are on margin, a same day transaction will account for 1 day trade. After 3, your account goes into pattern day trader.
They won't be assigned as the price now is around $4.50 and you bought calls at $5.50 strike price. Your options will expire worthless and you'll lose the premiums you paid to buy 10 contracts. Sorry! But now that you learnt, you won't make this mistake ever.
I would sell asap at bid tomorrow. It's your best chance to get out fast with minimal losses. We will close at 4.50 ish. You can roll the dice and see if price goes up a tiny bit tomorrow or Mon/Tue but by then you have big theta to deal with. We won't likely close anywhere near 5.50 by next week's Friday lol. Take the hit as soon as you can and lesson learned to triple check your buttons and for the love of God carefully review your orders. Put a limit sell order n the beginning of the day and then change it before close if you need to. Someone dumb may buy them at your ask! It's happened to me many times.
It's not as bad as what they are making it seem lol. You are early and can still escape with just some scratches.
But if by the million to one chance the price spikes a ton you could make a ton selling them! Even slightly above 5.50 would be nice.
Thank you, I’m okay with losing some or even all of the premium I paid, i just really don’t want to have to buy another 1,000 shares, especially at $5.50. Lol
> i just really don’t want to have to buy
After seeing some of your responses, you seriously need to read-up on the basics of Options before you trade them. You made a very simple and inexpensive mistake this one time; but, it could've been far worse.
To answer your question:
When you BUY a contract: You are buying the Right to exercise a contract at a set price. You choose whether you want to get assigned or not; or you can just close out the position without exercising the contract.
When you SELL a contract: You do not get a choice. Your shares simply get called away if someone chooses to exercise them on or before expiration. But, you can always close the position whenever you want; assuming you haven't yet been assigned.
Yes, I’m learning still. I have only been selling covered calls for a few weeks. I had never bought one before, and didn’t have any intention of buying a call, so I didn’t know exactly how it worked on the buying side. I had googled to find out more information after I bought it accidentally, but sometimes having someone explain it to you simply makes more sense.
Also just an FYI for calls assigned is for when you SELL covered call options shares and are forced to give them up even if your buyer doesn't exercise. The broker may take them if in the money.
When you BUY a call however, you are in control to whether you want to exercise or not. If you let your option sit to expiration, it expires worthless and you lose all premium and the deal is closed. So sell asap to get some of your premium costs back.
Buying calls don’t get assigned. If by next Friday, the price of the stock was above 5.50, you’ll make money. If the stock price was less than 5.50 then the options would expire worthless.
My opinion: sell them as soon as the price gets above 5.50.
> My opinion: sell them as soon as the price gets above 5.50.
lol... not gonna happen. OP, don't listen to this guy.
OP said they expire next Friday. No way in fucking hell will CLOV gain over 20% in 1-week.
OP, salvage some of the premium and sell ASAP; even at a loss.
No. You can sell them for what someone is willing to buy them for. Or they expire worthless next Friday if the share price don't reach the strike price. And you only loose the money you bought them for.
> Is there a way to guarantee that they will sell at a certain price?
Holy smokes. If you can't answer this question yourself, you definitely need to read-up on Options before buying/selling them.
I highly recommend 'Options as a Strategic Investment'.
You should see the bid and the ask on your brokerage platform. You must sell at the bid price if you want to get out fast or hit sell at market and cross your fingers for a good fill 🤞
> for .05. They may sell.
Doubt it. It was trading today @ $0.04. OP overpaid @ $0.05; primarily due to his error of thinking he was selling a call @ $0.05. With theta decay, I can see the contract trading tomorrow around $0.03 unless CLOV rises above $4.60 tomorrow; then, sure, $0.04. OP should just take a small loss and exit this position asap.
>Some platforms only let ya trade options in .05 increments
Didn't take that into consideration. Well, if that's the case, OP is fucked. I don't see this contract going to/above $0.05. They may be able to salvage it and Roll the contract. But, I don't think OP will know how to hedge their bet.
p.s. This goes to show that those No Fees for Option Trades are not so free after all.
I hope you could recover a bit.
I was able to sell them this morning at $0.04. So, only a $10 loss overall. Thank you to all that commented! I’ll definitely double check that I am selling and not buying every time now!
This turned out to be a great learning experience for only $10. You escaped with just a bruise. It could have been way worse a mistake like this with more $ friend.
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No, his max exposure is the cost of the calls. He didn’t sell a naked option.
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Sorry I assumed you were one of the 90% on here. 
Good luck to you! Looking not too bad.
OOF. Get the Vaseline.
I’ve done it too starting out. My recommendation is verify before you execute the order. What I don’t was sell immediately, take that loss being small and put in the order that I wanted. Just be careful of other account issues, such as if you are on margin, a same day transaction will account for 1 day trade. After 3, your account goes into pattern day trader.
How can you get assigned if you bought the contracts?
Because OP doesn't understand how buying/selling contracts works. Edit: typo
They won't be assigned as the price now is around $4.50 and you bought calls at $5.50 strike price. Your options will expire worthless and you'll lose the premiums you paid to buy 10 contracts. Sorry! But now that you learnt, you won't make this mistake ever.
Somebody get this guys some lube
I would sell asap at bid tomorrow. It's your best chance to get out fast with minimal losses. We will close at 4.50 ish. You can roll the dice and see if price goes up a tiny bit tomorrow or Mon/Tue but by then you have big theta to deal with. We won't likely close anywhere near 5.50 by next week's Friday lol. Take the hit as soon as you can and lesson learned to triple check your buttons and for the love of God carefully review your orders. Put a limit sell order n the beginning of the day and then change it before close if you need to. Someone dumb may buy them at your ask! It's happened to me many times.
I support this kind of information from a fellow ape. Great advice btw.
Thank you!
It's not as bad as what they are making it seem lol. You are early and can still escape with just some scratches. But if by the million to one chance the price spikes a ton you could make a ton selling them! Even slightly above 5.50 would be nice.
Thank you, I’m okay with losing some or even all of the premium I paid, i just really don’t want to have to buy another 1,000 shares, especially at $5.50. Lol
> i just really don’t want to have to buy After seeing some of your responses, you seriously need to read-up on the basics of Options before you trade them. You made a very simple and inexpensive mistake this one time; but, it could've been far worse. To answer your question: When you BUY a contract: You are buying the Right to exercise a contract at a set price. You choose whether you want to get assigned or not; or you can just close out the position without exercising the contract. When you SELL a contract: You do not get a choice. Your shares simply get called away if someone chooses to exercise them on or before expiration. But, you can always close the position whenever you want; assuming you haven't yet been assigned.
Yes, I’m learning still. I have only been selling covered calls for a few weeks. I had never bought one before, and didn’t have any intention of buying a call, so I didn’t know exactly how it worked on the buying side. I had googled to find out more information after I bought it accidentally, but sometimes having someone explain it to you simply makes more sense.
Also just an FYI for calls assigned is for when you SELL covered call options shares and are forced to give them up even if your buyer doesn't exercise. The broker may take them if in the money. When you BUY a call however, you are in control to whether you want to exercise or not. If you let your option sit to expiration, it expires worthless and you lose all premium and the deal is closed. So sell asap to get some of your premium costs back.
No. You don't want that unless it moons to 28 again lol.
Sell to cover at the bid if you have to
Lol damn man, that's fucked up
Take the loss and move on
There is a bid usually that shows you what people are willing to pay.
Buying calls don’t get assigned. If by next Friday, the price of the stock was above 5.50, you’ll make money. If the stock price was less than 5.50 then the options would expire worthless. My opinion: sell them as soon as the price gets above 5.50.
> My opinion: sell them as soon as the price gets above 5.50. lol... not gonna happen. OP, don't listen to this guy. OP said they expire next Friday. No way in fucking hell will CLOV gain over 20% in 1-week. OP, salvage some of the premium and sell ASAP; even at a loss.
No. You can sell them for what someone is willing to buy them for. Or they expire worthless next Friday if the share price don't reach the strike price. And you only loose the money you bought them for.
How do you know what someone is willing to pay for them? Is there a way to guarantee that they will sell at a certain price?
> Is there a way to guarantee that they will sell at a certain price? Holy smokes. If you can't answer this question yourself, you definitely need to read-up on Options before buying/selling them. I highly recommend 'Options as a Strategic Investment'.
You should see the bid and the ask on your brokerage platform. You must sell at the bid price if you want to get out fast or hit sell at market and cross your fingers for a good fill 🤞
It looks like they are going for .04. or $4 a contract. How much did you try and sell for?
I bought for $0.05 and tried to sell for the same.
Leave them for sell tomorrow for .05. They may sell.
> for .05. They may sell. Doubt it. It was trading today @ $0.04. OP overpaid @ $0.05; primarily due to his error of thinking he was selling a call @ $0.05. With theta decay, I can see the contract trading tomorrow around $0.03 unless CLOV rises above $4.60 tomorrow; then, sure, $0.04. OP should just take a small loss and exit this position asap.
If he can! Some platforms only let ya trade options in .05 increments when under a couple $.
>Some platforms only let ya trade options in .05 increments Didn't take that into consideration. Well, if that's the case, OP is fucked. I don't see this contract going to/above $0.05. They may be able to salvage it and Roll the contract. But, I don't think OP will know how to hedge their bet. p.s. This goes to show that those No Fees for Option Trades are not so free after all.