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Originally Posted by lewdog
Thanks Scho. That makes more sense. Are you able to set a certain sell price with that option during the duration or do you have to manually sell your option.
In other news, under armour stock down 30% in 3 days. Company still has tons of international expansion IMO. Good time to buy shares for long term. Or Is there a realistic call option you'd take on a stock that recently plummeted?
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Yes, the CBOE allows you to set a price you want to sell it at, called a LIMIT order and if the option reaches that price and there is enough contracts on the BID side, your option(s) would be sold.
They only allow day limit orders so you would need to re-enter it everyday if it didn't sell.
Under Armour will probably still have some downgrades and selling pressure. I would not buy a short term option but maybe one a year or more out when the price drops a little more.