Thursday, August 12, 2021

First option lost

 


Closed my first option of NIO as it was approaching the strike price of $41
think I will change strategy
to be more conservative
Look at the chart, and ask myself
what price then I will want to own that stock
for me, if NIO is $35, then I think I am ok to buy them
after looking at the charts

After having the price, then look at the options
the premium of 3 Sep option is $39, and week before is $21.
so it is a jump of around $18
the week after is $52, so the jump is only $13
therefore, 3 Sep premium is more value for money.

From some advice from youtube videos on options,
one of the traders close the option when he gets around 75% of the premium
so that he can free the fund to buy another option
I shall take note of that.



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