Unanswered Beginning Questions

[Short & Stocky]

I have been trading stocks for awhile but looking into options and learning more about them.I bought 1 contract in order to try and learn how it works but I've asked a few different places these questions and I just got "study and you will figure it out" as the answer. I have read all over online and watched videos and still cant get answers.

I am trading on the Robinhood app

1) I bought 1 contract call option for AVTI for $0.012 per share and like today it says i was +$38.00 and I was wondering how do I sell this? I click sell, then 1 contract and the minimum price I want but then no one ever buys it. Why am having issues selling it? it says open interest 2 and bid price $0.00. So did I buy a stock option that no one wants so that is why? what is the best plan to get rid of it and make money? wait until it expires? Hold it until it increases in value? Also what should I look for in an option to make sure someone will want to buy it?

2) Sometimes this option will go from me being -$11.00 to +$450 after trading hours. I cant seem to find a reason for this and am I able to sell it for this price? It is all very confusing to me.

3) Say the stock says i have +$200 When I go to sell it it lets me pick a limit price. This is the minimum amount I will accept for the stock? How do I know whats an appropriate price? Do I set it at exactly what the price of the stock is like $2.00? or Do I do it for half or?....

These may be dumb questions but its been really racking my brain and im just not grasping it. Hopefully you can provide some insight I just want to become a better trader.

Thanks

 

[NVP]

Hi

i recommend you trade demo until yuo know what you are doing ..... at the moment you are trading blind ....most people lose money who actually do know what they are doing

so get out of the ring

N

 

[Short & Stocky]

I dont mind losing money i have quite a lot of it i learn by doing and trial and error..... that still doesnt answer not even 1 question................

 

[Short & Stocky]

So what I dont get is you are discouraging people from even participating in purchasing options instead of sharing knowledge with them.. Why is that?

You are also not answering my questions and prefer a blanket approach I assume you either 1) Do not know the answer to my question 2) Do not want to help or 3) You have some big reason not to tell me..

Either way I think its a very poor answer that reflects on you as a person :O

 

[mike.]

Hang on a sec S & S, NVP is a very experienced trader, with a attitude like that then you will find nobody will help you.. He is giving you the best advice... Everybody even experienced traders use a demo account to to practice and try out strategies, As a beginner it will take you at least a year on demo before you even think about trading a live account.. But if you prefer the short route, just keep going as you are with all your cash, Please return in a couple of months and tell us how you got on..

 

[malaguti]

In fairness Mike, the guy has an issue NOW. he has bought 1 contract, and he's not sure how to get out. advising him to go to demo or get out, doesn't help his cause in the slightest, he doesnt know how.
what he needs is somebody who knows a bit about options. i dont so i cant necessarily help him. if NVP does, then why not help him.

 

[NVP]

So what I dont get is you are discouraging people from even participating in purchasing options instead of sharing knowledge with them.. Why is that?

You are also not answering my questions and prefer a blanket approach I assume you either 1) Do not know the answer to my question 2) Do not want to help or 3) You have some big reason not to tell me..

Either way I think its a very poor answer that reflects on you as a person :O

hey there SS

why so aggressive ?

I merely suggested you stick to demo until you have more knowledge under your belt

sorry i can’t help you ......just trying to,save you a few quid.....the are many more experienced option traders than me around to help you.....if they can

N

 

[NVP]

In fairness Mike, the guy has an issue NOW. he has bought 1 contract, and he's not sure how to get out. advising him to go to demo or get out, doesn't help his cause in the slightest, he doesnt know how.
what he needs is somebody who knows a bit about options. i dont so i cant necessarily help him. if NVP does, then why not help him.

seriously ?......you get out by exiting all positions ......or just phone up the broker and get them to do it

N

 

[be-positive]

short and stocky --------- as nvp suggests just telephone broker and ask about how to get out of position , if there is only crap open interest you must be in a weekly expiry date (stick to monthly ones where there is more open interest)-----is it ATVI (activision ???) ,if it is I see that ATVI have earnings coming out on Feb 12th ---- and as you are bullish on stock with the call position why not first get your brokers advice on getting out -------IMHO if it is (activision?) let your call run to 11th. Feb, then get out of position , I do hope your first option trade ends up with a profit on that day.

Then do yourself a favour and forget RHood , open account at a good options broker EG. https://www.tastytrade.com/tt/bio/tom-sosnoff you will learn all you need to know about options (They have a new learn centre with many hours of video footage that will keep you hooked) also excellent email or telephone support when you are puzzled about something.

Hope this helps as I shall not reply any further on this thread

 

[NVP]

cheers BP......talk soon on my thread

 

[NVP]

apologies for my relatively brief responses on so many recent Threads / subjects here at Trade 2 win

this is not intended to be clever or sarcastic or any other interpretations that members choose to read into the posts

it is simply i am always short of time and try to crystallise issues into 1 or 2 bullet points that i feel will be useful to the members involved ...sometimes this is not enough i realise ....apologies

I mainly respond over the weekends and always try to allocate time to Trade 2 win as it was the first main forum where i introduced my Forex Strengthmeter work back in early 2000's and the owners and members have always been kind to me ...something i try to do myself for members here ........I am active on a few other forums these days plus have Youtube , Twitter and my own website and membership to manage alongside pretty much full time trading and training in the week .....

If members feel that I have not explained my thoughts enough feel free to PM me and go to my profile for more details of how to contact me

Thanks again everyone .........
Neil
NVP