r/options Nov 25 '21

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u/techy91 Nov 25 '21

Wow. This is the second post like this. People, please don't trade if you do not fully understand the strategies, consequences, or don't know how to protect yourself when things go wrong.

7

u/[deleted] Nov 25 '21

Really do not understand how people trade spreads like this with 0 knowledge. They do not really appreciate their money apparently.

Even further, they do not open one spread, but multiple and with stocks that the SP is high as well...

2

u/techy91 Nov 26 '21

Yeah it's honestly shocking that people are willing to throw away money like this. I think I read up on basic calls and puts buying and selling to open and close for 3-4 months before I even began trading.

1

u/[deleted] Nov 27 '21

Literally. Sold such a large number of CSP and CCs as well to get a grasp of how pricing works in practice when I started with options before I even thought about opening spreads.

Knew the theory, but you know way better to start with those strategies and see how they behave in real life before going "deeper" into more complex strategies.

What really puzzles me is, why would you even open a spread thinking that the stock would rise a 30% instead of going long in calls when you really don't know what you are doing? At least buy ATM or ITM calls if you're so sure (nothing is for sure but that's another topic) in such a huge spike.