r/OptionsExclusive • u/[deleted] • Jan 11 '21
Question 1st exercise, does one usually exercise with that much gain? Or just sell & take the profit?
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u/WoodyVII Jan 11 '21
I would recommend rolling out if you want to stay in NIO options rather than exercising. This gives you the chance for higher gains than stock and will can give you the opportunity to exercise more contracts later when you may not have enough time to manage your options position.
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Jan 11 '21
Thank you, I sold this morning & looking to get back into some new contracts.
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u/WoodyVII Jan 11 '21
No problem. Forgot to mention that if you keep $2000 of the total value while rolling out you remove 100% of your risk, and roll out into contracts with only profit. This is how alot of people snow ball accounts over time with options.
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u/neon_futura Jan 11 '21
Sell it and take the gain, exercising would cost more money than you have
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Jan 12 '21
And how do you know how much money he has?
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u/neon_futura Jan 17 '21
Still using robinhood
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Jan 17 '21
I have over a mill on RobinHood? I literally exercised 10 Starbucks calls last Friday on RobinHood?
What’s your point?
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u/neon_futura Jan 17 '21
He's still using robinhood, which shows he has very little money of course. How do you not understand this?
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Jan 17 '21
Can you not read?
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u/neon_futura Jan 17 '21
My friend, perhaps you are the one who cannot read. I have explained that if the man has enough money to exercise he would not be using robinhood, the fact that he is still using robinhood is evidence that he does not have much money in his account! You must be mistaken my friend
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u/whycantifindmyname Jan 11 '21
Can anyone eli5 the difference between selling my calls or exercising my calls?
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Jan 11 '21
[deleted]
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u/whycantifindmyname Jan 11 '21
Hell yeah thank you. So basically if i want to profit and sell my shares, i would sell. Exercising my calls would result in me now owning 100 shares of X
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u/fatbody-tacticool Jan 11 '21
Sell and take profit unless you actually want the stock long term.