Trying to figure out my options as I purchased 200 shares of APLD at 5.59, after it had surged over 6 dollars in the day. So i also bought 4 five dollar strike puts sept 20. That next morning it pulled back. I should have sold for the 120 gain. But now it says I'm negative more than the max loss stated. I think 2 were considered protective puts and 2 were long term puts. I had figured I'd just wait to have them expire worthless and be out the 160 that I paid for them. I just don't wanna get into a crazy hole or have to buy 1 or 2k shares at the new higher price when they expire.

    https://www.reddit.com/gallery/1fd0j9s

    Posted by Old-Soup92

    8 Comments

    1. Interesting_Play_578 on

      It’s showing your average cost is .51, that would mean you paid $204 for the 4 contracts. That max loss must reflect a different market price than you wound up getting.

    2. i_hate_alarm_clocks on

      Looks like your puts increased in value after you bought them?, today at open they were worth 300$, and now they’re worth 20$. You lost 280$ today but you only paid 204$ so part of that loss is on your principal and the rest is on unrealized gains.

    3. Pay attention to “Buy to open”. Put price was $0.4 when you added the order, but the market opened them at $0.51, and that’s what you paid for each contract.

    4. So I can wait till the 20th, and they’ll expire worthless. Losing the 160 premium I paid.it said that was my max loss or sell tomorrow and just take the loss. I just figured it surged so hard it would drop and it did but I was working and missed my window

    5. Your cost is $51/contract
      You bought 4 contracts

      4 * $51 = $204

      Your maximum loss is $204. The second picture is irrelevant because it doesn’t reflect what you’re showing you own in the first picture.

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