I’ve recently been getting into options, and I am looking to buy my first call.
Currently I am looking to buy 1 LUNR call with a strike price $10 @ 1.32 expires 1/17/2025.
(I pay $132 total)
From my understanding, the delta at 0.47 and gamma at 0.07 should mean that this isn’t a super high risk purchase, but I’m still not sure I’m getting this all right
Posted by lizardfirelord5
11 Comments
Not necessarily. It could (and as someone who holds $11 calls) more likely be that at that price the option just isn’t in high demand.
LUNR is a great choice for your first long term call.
I hope you bought it!
Newbie here as well. Just want to get an understanding on options. Havent bought any yet.
If I buy an option then sell it, would I be at risk for providing 100shares if the person who bought it exercises the option? Is this what they call “naked” options. I only have like $4000 invested in various stocks. I don’t have 100s of shares in one company tho.
Should I only play options if I have the shares to cover any exercised calls I buy then sell. Like if I buy an option OTM then try to ITM for the higher premium. Is this a huge risk for the call to be exercise. Should I just exercise the option if it’s ITM.
Is there a good resource anyone recommends to do my own research. (I have no financial background/education. Just have some money I can play around with)
I personally would not do that right now since it has already had such a large move within the past month
Good luck, can go up or go to zero. I have a little bit of shares and I’m surprised it went up so much
The IV is crazy high right now (over 100%). Not sure what it is normally for LUNR, but that’s typically not a good time to buy options. Usually I wouldn’t buy when it’s over 65% (under 45% is better), but again it depends on the stock. Just be aware of IV crush.
Buy #INVZ 🚀
Buying options is a losing deal. You only win if the stock goes up (usually a LOT). Of course because of your inside knowledge this is a sure thing. Me I sell options, and wait for nothing to happen, and 80% of the time that is what happens.
Want to know more look over Tasty. Thousands of short studies. Here is one.
https://ontt.tv/JeGVN Short Puts vs Covered Calls vs Poor Mans Covered Call Jul 9,2024
LUNR is 55% on the day. What happens to the stock if the shorts can’t cover tomorrow? I’m not asking for a “crystal ball”; I’m new to options & would like a general understanding of what could happen to the share price in this scenario
If you can afford it, go deeper into the money. I prefer 80 delta calls. Safer place for money, and moves slower if it goes against you. Regardless, LUNR is a great choice!
Bought 10 – $5C expiring 9/20 on 7/12/24. I sold 6 yesterday, should I have waited for today, 9/20? Was this a good sell?