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How to avoid holding Options that expire worthless?
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$SoundHound AI (SOUN.US)$ here's an option play for the bull...

$SoundHound AI(SOUN.US)$ here's an option play for the bulls. rather than by the common stock here at $8.30 you can buy a March 15th $7 call for a 1.30 contract.. if tomorrow 4:00 the stock stays here does nothing you got to play you got all your money back zero risk if the stock today goes back up to $9 you're going to get $3.50 back.. if it goes any higher it's tick for tick because you're in the money. if the stock collapses and goes to five if you were to bought the common stock a thousand shares you're down $3,500 with the option contract it expires worthless tomorrow you lose a dollar 30 per contract each contract controls 100 shares so if you want to control a thousand shares it's 1300 at risk. if tomorrow at 4:00 the stock is above $8.30 anything it's above you're getting back your premium that you paid for the option contract plus profits.
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  • joe black8 : hahaha, please don't give advice on trading options now. Just stop, don't give advice on trading at all, you sound so generic, very cliche, I wonder if you are chatgpt?

  • 10baggerbamm OP : I'm giving my opinion if you don't like it don't read it kid honestly you don't even understand what I wrote I'm sure of that. would have provides is a complete hedge against losses you know going in exactly what your loss is unlike if you buy the common stock long am I speaking above your pay grade. this provides a risk reward that's in your favor versus owning the stock outright do you understand that or is that above your pay grade also

  • joe black8 10baggerbamm OP : buddy, you an amateur who makes no sense, you are full of garbage

  • 10baggerbamm OP joe black8 : I've been trading since 1988 I owned a bd. so clearly you have no idea what I'm referring to just stop while you're behind already because you're showing your inept ability to comprehend basic option trading and hedging

  • MoJoeshoes : Do you think buying covered calls would work the same?

  • Filomena Angeles 10baggerbamm OP : I am hoping to learn from you , keep up the good advice. I am very interested to learn long call and long options basic for now.

  • 10baggerbamm OP MoJoeshoes : your terminology is off you either buy calls or you sell covered calls you buy calls you do not own the underlying stock you're making a bet based off of time and price where the stock will be at a designated future point in time if you sell cover calls you own the underlying stock you're giving somebody the option to buy it in the future at a preset price and in return they are paying you a premium to do so so before you start getting involved with options you need to understand by definition exactly what you're talking about. so watch some videos on understanding option trading basic options my advice to you is do not buy calls do not buy puts 90% of the time options expire worthless selling cover calls is a good strategy

  • Filomena Angeles MoJoeshoes : Very humbly disagree ! Some exchanges donot offer covered calls yet, so I am grateful for any advice. And it seems relevant want I need as a beginner , thank you !

  • 10baggerbamm OP Filomena Angeles : actually it would be the security because some small cap companies don't have options on them but the New York the American and the NASDAQ exchanges all have options the underlying security may not.

35+ yrs in the trenches, raised tens of millions for start ups, syndicate ipo's, yrs on trading desk mkt maker.