I'm a beginner, and I can't always check my brokerage account during the day because of work. Is there a reason not to go ahead and set a limit order for options in case an intraday spike makes them profitable to my liking? I can't imagine it being a terrible idea, but I have a lot to learn yet. Thank you for any insight!
Is there a reason not to set a limit sell on options?
byu/icannothelpit inoptions
Posted by icannothelpit
5 Comments
On the basis no one knows what will happen next, no, there is no reason not to.
You can what if, until the cows come home.
The answer is no 👍
For certain trades I put in BTC orders at 25% or 50%, that are GTC.
There have been times where I put in a limit order to sell my option at market order and it worked out for me. I was able to sell it for about $200 even though the option fell down to about $100 after the market open volatility wore off. There have also been times where I did the same thing but missed out on profits because the underlying continued to rise after market open. Pros and cons, but I think it’s reasonable to put a sell order at a price you like.
I am of the opinion that every time you open an option BTO or STO you should set up a GTC limit close order immediately.
I love ‘what ifs’. It makes me eat myself alive from the inside out and hate myself for getting out too early or too late. That way, I’m always hungry for more until the greed gets the best of me and I lose everything.
Long story short, figure out a % you would be happy with as a profit and set a limit order and go about your day. Greed and envy are the green eyed monsters that’ll have you for breakfast, lunch, and dinner. Don’t be eaten.