Submitted by coliozenobio t3_zw8icl in wallstreetbets
coliozenobio OP t1_j1teyij wrote
Reply to comment by mytendies in Just bought LUV puts (all my homies hate southwest) by coliozenobio
Epic, 6:20am alarm set
ImmenatizingEschaton t1_j1tf75w wrote
Dude market orders can literally be anything someone types in as an order and you will be forced to purchase at that price. If you are gambling then do it. If you care about your money don’t.
coliozenobio OP t1_j1tfcj6 wrote
I can just not exercise the put options, no? Then I’d just lose the contracts I bought (about $100)?
ImmenatizingEschaton t1_j1tfvzb wrote
You don’t understand how this works. Don’t do it.
coliozenobio OP t1_j1tg7an wrote
I’m pretty sure I understand… if I’m wrong about LUV, I would let the contact expire. I would not be forced to purchase at a certain price. I would lose $$ I spent to buy the contracts (total of about $100)
ImmenatizingEschaton t1_j1tgsqp wrote
You don’t understand because the price is set at market, meaning literally whatever price someone happens to be selling the option at the time your market order executes. THAT is what you are risking.
theredmage333 t1_j1tkj90 wrote
Just let the kid find out
Outof_ITM t1_j1uhcd1 wrote
Oh boy, this is going to be fun. Please post a follow up to this.
dotsworth t1_j1uppgh wrote
🫡
Peppa-Piggie t1_j1tp7b1 wrote
You never want to exercise. Lose out on value from IV.
OB1KENOB t1_j1tjwkk wrote
That’s what I do every day.
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