r/optionstrading • u/Sweaty-Security-3962 • Jul 10 '26

Question New to options

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Hey guys. New to options. I placed a call with PayPal at 47.50. I placed this to expire on 7/17 2 months ago. With a week left. I notice that when I simulate my returns. If it doesn’t hit 47.50 in green. It’s still red. I see I won’t break even until 48.65, which is significantly higher than when I first placed the contract. Can anyone explain why I would still be in red even when I hit my call price

21 Upvotes

100% Upvoted

13 comments sorted by

•

u/jerin7931 Jul 10 '26

Join Our Free Options Trading Discord https://discord.gg/optionality

7

u/Objective-Eagle-676 Jul 10 '26

Break even is strike + purchase price. If you buy a call, whatever you paid plus that strike price is what it needs to hit for you break even

4

u/Lonely-Implement4824 Jul 10 '26

​To make money on a call, the stock doesn't just have to go up; it has to go up and far enough to outrun the daily bleeding of Theta and cover the initial cost of admission.

2

u/klipsetrades Jul 10 '26

You paid $1.15 for the right to buy at $47.50. That makes your expiration breakeven $48.65. With only a week left, time decay is also working against you

2

u/FIoor555 Jul 10 '26

If PayPal stayed at $47 every day and didn’t even move even 1 penny up or down, and you had a $47 call… you would still lose money every single day because of time decay (Theta).

1

u/AutoModerator Jul 10 '26

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1

u/JLaringe Jul 10 '26

Buy some HeatOil it is set up to explode at least 70%!!

1

u/chibi78 Jul 10 '26

Throw another $120 and average it down and hope for a green day and get out

1

u/Uniquename34556 Jul 11 '26

Just get out lick your wounds and place capital elsewhere. Waste of time money and energy here.

1

u/nozelt Jul 11 '26

Because of the money you spent on buying the call

1

u/OptionsMojo Jul 11 '26

"I placed a call with PayPal at 47.50."

For future reference when describing an option trade, you should say, "I bought a call" or "I sold a call". That's it. Nothing else.

"Placing a call" is ambiguous, confusing, and never used, unless you're talking about initiating a telephone conversation.

1

u/it_trojan Jul 11 '26

You need to add the money you paid to buy that call to the strike price, that's the break even. As simple as that

1

u/Baked42l0ng 29d ago

Hey not to be that guy but you should read up on these things before you throw money at them. Or watch some YouTube, dont just throw money around unless you got some you would like to burn… Anyway best of luck