0

Here is my current scenario:

I bought a put option for 390.00 on 03/09 after market close, the status is still set as queued

I see now that the aftermarket price is 390.06

If after market goes below my put price does that turn my put into a call and I lose money on it? or will the order just not be fulfilled

enter image description here

Improve this question
5
  • 3
    A serious question you need to ask yourself is what you actually try achieve here. You are putting orders for products into a system where you have not even a vague idea what they are supposed to be doing.
    – AKdemy
    Mar 10 at 6:50
  • There's nothing invalid about buying puts with a strike price higher than the current market price. E.g. you can buy a 390 put when the SPY is 389. Nothing wrong with that. Such a put is called "in-the-money"
    – user253751
    Mar 10 at 15:45
  • @user253751 of course not but you can't buy/sell options outside of market hours. OP is spending up to $2.32 per contract for options that expire today. SPY would need to drop to 386.68 just to break even (excluding fees...)
    – 0xFEE1DEAD
    Mar 10 at 16:10
  • 40+ options on ETFs and ETNs (including SPY) trade after the stock market closes (until 4:15 PM),
    – Bob Baerker
    Mar 10 at 16:37
  • @BobBaerker correct but now we're starting to split hairs... I said market hours not 4:00 PM. It's likely that the order was "queued" because it was placed outside of market hours (for that option.) Note that the screenshot shows 20:38 (8:38 PM). We don't know where OP is based but it's reasonable to assume that it's past 4:15 PM ET. In any case, OP states that he/she "bought a put option [...] after market close"
    – 0xFEE1DEAD
    Mar 10 at 16:56

2 Answers 2

Reset to default
4

Puts cannot turn into calls nor can calls turn into puts.

You bought a $390 SPY put for some undetermined cost. If implied volatility increases and/or share price drops, your put will increase in value.

I would recommend that you read a book on options because based on your question, you don't have a good grasp of how options work.

Improve this answer
2

Careful what you're doing there... The order will likely be executed at the open.

If it goes through, you'll buy 7 puts, expiring tomorrow (same day). If SPY moves below 390 and you don't close out your position by 4:00 PM, your options will be exercised and you'll find yourself short 700 shares of SPY come Monday morning (unless you already have the shares...)

Depending on your account size/available margin, you might get margin called. If the market rallies, you could lose a good chunk of money and Robinhood might close your position for you, at whatever the market price is.

As Bob said, read up on options before proceeding...

Improve this answer
9
  • 1
    SPY is an actual ETF with shares, right? I ask because there are also cash-settled options for this particular index.
    – user253751
    Mar 10 at 15:46
  • @user253751 it's the world's oldest and most liquid ETF, it should go without saying...
    – 0xFEE1DEAD
    Mar 10 at 16:12
  • 1
    @0xFEE1DEAD SPY is not the world's oldest such ETF. The oldest is a Canadian large cap index ETF that trades on the TSX since 1990. SPY is since 1993.
    – Chris W. Rea
    Mar 10 at 17:46
  • 1
    @0xFEE1DEAD There was a merger and name change when the major Toronto Stock Exchange indexes were reorganized way back then. The original Toronto Index Participation Securities were established in 1990. newswire.ca/news-releases/…
    – Chris W. Rea
    Mar 10 at 18:33
  • 2
    @0xFEE1DEAD It was an ETF back then, even if we're being pedantic. :) They just didn't have the name for the category yet. But, (a) it was a fund (not futures/derivatives), (b) it was exchange-traded, and most importantly, (c) it had a creation/redemption mechanism to keep the price and NAV close, setting it apart from closed-end funds.
    – Chris W. Rea
    Mar 10 at 21:25

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .