Yesterday, I tried my hands at Option - bought a VIX call option contract that expires in 1 week.
Background: "An option premium is the current market price of an option contract. For stock options, the premium is quoted as a dollar amount per share. It depends on the price of the underlying asset and the amount of time left in the contract.
Option price above was opened at $4.90, closed at $5.25."
Option price above was opened at $4.90, closed at $5.25."
Facts about Saxo's option:
- American style
- Settlement: physical
- Contract size: 100
- Commission per option $3+
My Lesson
As you can see in the snapshot above, I have sized terribly wrongly.
I could have lost it big if US market failed to slide before the option expires (the slide came today, I am lucky or what?!). Yeah it's a really expensive hedge. So phew...
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You have got the pun in my title.
Oh well. Better stick with plain vanilla EQ and CFD.
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Gold slided. Investors are moving into cash again.
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Disclaimer: Contents of this blog are personal opinions and NOT financial advice to buy or sell any mentioned securities, commodities or assets.