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27393370 No.27393370 [Reply] [Original]

I bought this option last week. Can someone explain to me what will happen if I don't sell it and let it expire? I doubt GME will dip below the price so I should be able to exercise it...

but I don't know what that means, I've never done it before. Can someone tell me what's going to happen? New to stocks and calls

>> No.27393457

Your account will be liquidated if you don't sell today.

>> No.27393577

>>27393370
This has to be a troll.

>> No.27393683

yah if this is not bait youre a god damn retard

>> No.27393720

>>27393577
It's not, I made a bunch of money on Tesla and figured I'd buy a single GME call when GME was around 80, little did I know it'd go to almost 400 the next day.

>> No.27393891

>>27393370
>buy a single GME call when GME was around 80, little did I know it'd go to almost 400 the next

Anon, you have to sell, your other option is to exercise the option but you probably dont have enough money for that. just sell and walk away btw, you gme is dropping anyways.

>> No.27394277

What is this app called? And how much did the contract cost?

>> No.27395277

>>27393891
What happens if I don't have enough money to exercise the option?

I have about 110k in my robinhood account, but it's all in stocks.

>>27394277
robinhood

>> No.27396298

bump someone plz

>> No.27396820

bump

>> No.27396985

>>27396820
you can sell your call, you don't have to exercise it, but you have to sell before expiration.

>> No.27397116
File: 319 KB, 1080x2400, Screenshot_20210201-103234_Robinhood.jpg [View same] [iqdb] [saucenao] [google]
27397116

>>27393370

Sell that shit dude Jesus

Put it in CLF calls

>> No.27397331

>>27396985
but what happens if I hold it?

>> No.27397434

You have 3 choices:

1.) Sell your options contract, take your money, and move on.

2.) Exercise your options contract to purchase 100 shares of GME. From there it's a normal stock and you can what you please with it.

3.) Let it expire. If it expires you lose everything you invested in the contract.

>> No.27397618

>>27397434
wait I have to buy 100 shares of GME? what if I can't afford it?

>> No.27397840

>>27397331
It depends on your broker, they may exercise it for you and you will have to pay for 100 shares at $115, which is $11,500, or they might decide to sell your contract at an inopportune time due to liquidity.

>> No.27397943

>>27397618
Then you can't exercise it. That leaves you with one of the other two choices.

>> No.27398088

>>27397331
also if you hold it and GME goes to $115 or below on 2/5 (the expiration on your contract) your contract will be worthless.

>> No.27398102

>>27397943
can i open margin to buy it? I would def take 100 shares of Gme for 11,500

>> No.27398304

>>27393370
JFC the absolute state

>> No.27398314

>>27398102
Call your broker and ask them. I don't speak on behalf of brokers.

>> No.27398369

>>27398102

You are so immensely fucking retarded this must be a troll. Have a (you) faggot.

>> No.27398628

>>27398102

this is a terrible idea.

just sell your option and buy shares with the profit knucklehead

>> No.27398701

>>27393370

If it expires out of the money - It will expire worthless and go poof

If it expires in the money it'll be liquidated, the actual process on how this works is a bit complicated but you will basically get the (price as of around 5:30PM on a Friday minus the strike price) x 100 in cash.

>> No.27398826

>>27393370
Jesus Christ... new fags like you should NOT be buying options or anything of that nature. Dumbass.

>> No.27398840

>>27393370
Sell your shit dumbass, what the fuck are you waiting for??

>> No.27398856

>>27398628
Right now my option is only worth 12k, therefore if I can exercise it and get 100 shares of GME for 11k, that seems like a much better deal because I can immediately sell it all for 24k if GME holds it's price around here.

>> No.27398965

>>27397331
then it expires and you get nothing
just sell it

>> No.27398978

>>27398856
just get that free 12k

>> No.27399235

>>27398102
No don’t do that

>> No.27399365

>>27398856
Look up dunning Krueger effect. You’re currently too stupid to do anything fancy so just take the profit and exit, for the love of Christ

>> No.27399371

>>27393370
If you have the funds to buy the stock Robinhood will buy them for you. If you don’t the option won’t be exercised.

Just sell the option now

>> No.27399385

>>27398856
You have to contact your broker to have them execute or not. I suggest you look up their number and do that now.

>> No.27399473

>>27398856
or just sell your call option that's already priced at the same value you would get by doing this...???

>> No.27399552

>>27399365
dunning krueger refers to people who aren't smart enough to see how dumb they are. I know how dumb I am when it comes to this stuff which is why I'm asking questions you fucking faggot learn how to use terms properly

>> No.27399641

>>27398856
You're going to risk everything for a potential $500 while GME may or may not be on the way out? Anon, God speed on your play. I'd advise you stay away from the stock market entirely if you're just going to gamble.

>> No.27399731

>>27393370
kys

>> No.27400082

>>27399641
redditors are gambling on GME with literally millions, I think I can risk 10k

>> No.27400435

>>27397434

Completely new to this, where is the x100 coming from?

>> No.27400603

>>27400435
That's what an option is, the right to buy 100 stocks at the specified price.

>> No.27400636

>>27399552
Please please make an update thread in 24 hours I really want to know how this turns out.

>> No.27400684

>>27395277
Then RH will sell the contract

>> No.27400769

>>27400603

Alright. Thanks, anon.

>> No.27400803

I had a similar call worth 55k last week, bag held shit is worth like what? 20k? right now?

>> No.27401388

>>27400082
The call will go up in value proportional to the price. You have zero reason to go through the hassle of exercising the option. You could literally sell the option and buy GameStop at market price and make a profit rather than executing the call.

>> No.27401954

as someone new to options, reading this thread helped me understand them much better lol. thanks OP for being retarded

>> No.27403092

>>27398856
lmao

>> No.27403769

>>27393370
either best troll or biggest retard i saw today

>> No.27403838

>>27401954
too vague, basics are options is a contract to buy/sell 100 shares at "x" price

better off doing your own research

>> No.27403911

>>27403838
yeah, i understood the basics. i just didn't really understand specifics like this thread is covering. like I understood what the contracts meant, but not what you should do with them

>> No.27404629

>>27393370
This better be a joke.

I'll bite
You close it out for a profit before close of market on expiry day, if you forgot to you want to hope you have auto exercise on and that you have the dosh that you might need. Otherwise you are one epic faggot.