Did you have to already own the PCS in order to sell it, or is this part of the mechanics of what this option is? I probably need to find an explainer video about OCS on YouTube. :)
And also it is not clear to me if you made money on this, or if the stop loss executed and you lost some percentage of what you put into the trade.
It's been a long time since I did anything with options. Can you tell? :D
an option can be SOLD and then bought back later, its just the direction of the trade.. up or down.
I am still trading papermoney, so this doesn't really matter, but its good practice to submit the orders and stuff.
if my stop gets filled, I lose money, but if the market really changes direction against u.. a trader could lose all the money they had on the table.. like in this instance, I needed $500 in my account (called buying power) in order to control 1 contract, and if price goes far enough in the wrong direction, then i could lose the total $500.
yea, its all pretty confusing until u really have done some REAL MONEY trading.. u pay way more attention with real money on the line. :P and it took me about 6 months to really 'get it'. :)