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/biz/ - Business & Finance

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>> No.22465543 [View]
File: 520 KB, 596x667, 1599664041075.png [View same] [iqdb] [saucenao] [google]
22465543

>>22465497
Oh shit I forgot
Investing.com literally warned me when I edited >>22465407

>> No.22432702 [View]
File: 520 KB, 596x667, 1599664041075.png [View same] [iqdb] [saucenao] [google]
22432702

>>22432432
No. The price I wrote/sold the option for has risen and buying/closing the option now would cost me more than I initially received. I would need to buy the 100 shares.

I write a 280 put on FB when it's 290. I receive 5 dollars.
The price drops to 270 on Friday. The option is now worth 10.

My options are:
-Accepting to buy 100 shares of FB at 280, making a 280-270-5= 5 dollar loss per share
-Rolling the option another week. I buy the option for 10, making a 5 dollar loss, but open another option one week out for let's say 12 dollars, hoping that FB stays at least stable.

A realistic example because I wrote that put when we """dipped"" on Friday haha

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