LOL! One of the arguments that was always around when I was learning options was…“but if you believe in it why limit your upside with an option?”
This happened to me once or twice in past, but it is very rare. This example is egregious in it’s fallout.
I only JUST started some options on ALAB. I believe in the industry, but I am playing the trends when using options. My put was assigned and then I flipped to a call…I set my time, my return I’d be happy with (~8%) and got my premium.
What was expected to be about $3000 in return for the appreciation/option is now DWARFED by the actual (as of today) return of 21% and almost $9000 gains the stock is sitting at.
Wow. So it does happen, but I’ma take my premium and appreciation and work more options. Hope others manage to get rich on my lesson. ![]()
ps - anyone that knows me from past MF knows that I am throwing around numbers here that NEVER entered my mind a decade ago! This is what I think is really getting to me, the unbelievable idea that any of this makes sense or is even possible.