LogFAQs > #957023936

I feel like i need more information about what exactly is happening.

"I had sold $30 calls that expired in 2 weeks and bought $30 calls that expired in 3 months"

So just to clarify this means that

1) Someone paid you X for a $30 call that expires in 2 weeks.
and
2) You paid someone else Y for a $30 call that expires in 3 months.

And then what? 2 weeks elapses and the calls are getting exercised? Or the positions are being closed before the 2 weeks even happens?

And did you already own the underlying stock going in or are you having to purchase them at cost to sell to someone else for $30? Is that where the money is being lost?

I'm just trying to find where your benefit in the scenario is supposed to materialize. Is it from selling off your 3 month option to someone else?

I'm still in the 'accumulate wealth' phase of investing before I have enough money to play with stock options so I have only a basic understanding of them.

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~C~ FD
https://imgur.com/dGDfxaw