New Trader Getting Smashed on Call Options.. Help me get out.

Oleksandr Medviediev 2024.03.14 03:55 #1

The challenges you are facing are (i) understandable, and (ii) typical for beginners. It’s crucial to remember that trading involves both wins and losses, and managing risk is key to long-term success. In some extreme cases the loss of deposit or a margin call is not rare.

In situations like these, it’s essential to assess your risk exposure and consider implementing hedging strategies to protect your positions. For example, you could consider buying put options on stocks like NVDA, CRWD, META, and OKTA to offset potential losses. This strategy can help mitigate potential losses during volatile market conditions. Remember that seeking professional financial advice is always a prudent step when navigating complex market situations.

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Michael Charles Schefe 2024.03.14 05:31 #2

johng703:
Hey guys, I’m new here and have been trading for the past 6 months. I got lucky on NVDA CRWD META and all those AI/Tech surges and was bringing in roughly 2k per month (mostly unrealized gains). Then Friday/Monday they crashed.

I’m stuck in some really bad positions but I don’t know enough to hedge. I have one expiring on the 15th… The others I have a month or two. I’m also stuck in some bad biotech positions. If anyone could please provide an opinion on how most traders would handle my ports situation PLEASE chime in.

The numbers are my total gains and losses on the stocks. OKTA is making me very nervous. I got overconfident and need help I’ve dipped down 2,100 since Friday 😵‍💫

just how we role matie. we take the bad with the good. most of time nothing can be done but to just "take it on the chin", and then after "the dust settles", then "pick oneself up" and "get on with it". and dont hedge or take trades in same direction unless you are 100% "in the know" -- that those new trades will win. hedging and "doubling down on a loss" are too risky otherwise.

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Dominik Egert 2024.03.14 07:59 #3

johng703:
Hey guys, I’m new here and have been trading for the past 6 months. I got lucky on NVDA CRWD META and all those AI/Tech surges and was bringing in roughly 2k per month (mostly unrealized gains). Then Friday/Monday they crashed.

I’m stuck in some really bad positions but I don’t know enough to hedge. I have one expiring on the 15th… The others I have a month or two. I’m also stuck in some bad biotech positions. If anyone could please provide an opinion on how most traders would handle my ports situation PLEASE chime in.

The numbers are my total gains and losses on the stocks. OKTA is making me very nervous. I got overconfident and need help I’ve dipped down 2,100 since Friday 😵‍💫

First advice, stay calm.

Secondly, you are trading options. The solution is in the asset class name. It's an option. Don't execute the option.

I suggest you go and read about what buying a call or a put option actually means.

In short, having "out of money" options usually means you don't want to make use of the bought right of your option. You just kill it.

I suggest you check with your broker on how to cancel your out of money options.

Then I suggest you take a deep dive into how options actually work. There are lots of techniques to trade options and protect your account from big losses.

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