Learning options
To learn options I tried a simple thing a month ago. Bought A) 1 MSFT put for 400$ strike price with 3/22 expiry (-450$ total return currently) B) 1 MSFT call for 455$ with 4/5 expiry (+36$ total return currently) Current msft stock price is literally 425$ midpoint. Options is fascinating but these options fluctuate crazily all the time. What do seasoned options traders do ? How would you evaluate what to do with above case? Sell/hold? Don't care about the return but want to know the thought process
r/wallstreetbets
sell calls . Don’t do nothin else
What you did is called as a Strangle. Not a bad strategy, only mistake you did is that your strike price was way out of money. If you had got Call and Put ATM (At The Money, I.e stock price at the time you got the option) with same day expiry, you would be looking at + 1-1.5k profit/ contract
You need to learn a lot more before you actually start trading. Sell both and open a paper account
Where to open paper accounts?
Most trading platforms have paper money for trading. Eg. Schwab has paper trading with options on thinkorswim