Help choosing a sell order type.

[Bern80]

Fairly new to doing my own trading online and want to know opinions or if I even can place the following order type and whether it will do what I want it to.

I have hypothetical stock trading at $52. I will be satisfied with my return selling at $60 which I am fairly confident it will get to, but I don't want to sell for less than $55. So can I place a stop limit order with a limit price of $55 and a stop price of $60? The intention being I want the order to execute at $60 if it gets there or sell at $55 before it drops below.

 

[JimmieD]

If you set a stop limit of $55 when the price is below 55, it will trigger the order if the price hits 55 and will close your position.

 

[Paulie]

If you want 55 to be your limit you're going to have to wait til the current price reaches that first.

 

[Paulie]

You should read up on options trading if you want to make these kinds of trades.

 

[Rocko]

Yes, you can do it. You have to place a stop loss at 60 with a limit of 55.

 

[UKRider]

I'd keep in mind that the stop market order only triggers an intent to sell. If the stock is falling fast or if a buyer becomes an issue, then recovery could be problematic.

 

[Mr. H.]

Is it really that inconvenient to monitor a single stock's performance?
You must be a very busy person.

 

[NYcarbineer]

You need the stock to get over 55 before you can put a stop loss at 55.

 

[percysunshine]

Sell out of the money $55 call options to cover your position. If it never reaches 55 before they expire, you pocket the premiums. If it reaches 55, you can close the position and still keep the premium. The downside, of course, is that it rockets to 65 and the call buyer gets the extra ten, minus the premium. Either way, you get the 55-60 range you want.

 

[Mr. H.]

I don't understand a word of that.
And I don't think I want to LOL.

 

[Rocko]

I'd keep in mind that the stop market order only triggers an intent to sell. If the stock is falling fast or if a buyer becomes an issue, then recovery could be problematic.

What's a stop market order?

lol

 

[percysunshine]

I don't understand a word of that.
And I don't think I want to LOL.

It takes some getting use to, chuckle.

Think of yourself as a bookie taking bets, and it will all be clear.

 

[Rocko]

Sell out of the money $55 call options to cover your position. If it never reaches 55 before they expire, you pocket the premiums. If it reaches 55, you can close the position and still keep the premium. The downside, of course, is that it rockets to 65 and the call buyer gets the extra ten, minus the premium. Either way, you get the 55-60 range you want.

No offense, but you obviously don't know what you're talking about. I mean don't even know if the stock he ownes trades options and you're trying to tell him how to trade them.

 

[percysunshine]

Sell out of the money $55 call options to cover your position. If it never reaches 55 before they expire, you pocket the premiums. If it reaches 55, you can close the position and still keep the premium. The downside, of course, is that it rockets to 65 and the call buyer gets the extra ten, minus the premium. Either way, you get the 55-60 range you want.

No offense, but you obviously don't know what you're talking about. I mean don't even know if the stock he ownes trades options and you're trying to tell him how to trade them.

Psst....they are hypothetical options for hypothetical stock.

 

[Mr. H.]

I don't understand a word of that.
And I don't think I want to LOL.

It takes some getting use to, chuckle.

Think of yourself as a bookie taking bets, and it will all be clear.

Soitently, poicy!

 

[Rocko]

Sell out of the money $55 call options to cover your position. If it never reaches 55 before they expire, you pocket the premiums. If it reaches 55, you can close the position and still keep the premium. The downside, of course, is that it rockets to 65 and the call buyer gets the extra ten, minus the premium. Either way, you get the 55-60 range you want.

No offense, but you obviously don't know what you're talking about. I mean don't even know if the stock he ownes trades options and you're trying to tell him how to trade them.

Psst....they are hypothetical options for hypothetical stock.

That doesn't make any sense. If you understood anything about options you'd laugh at what you wrote.

 

[percysunshine]

No offense, but you obviously don't know what you're talking about. I mean don't even know if the stock he ownes trades options and you're trying to tell him how to trade them.

Psst....they are hypothetical options for hypothetical stock.

That doesn't make any sense. If you understood anything about options you'd laugh at what you wrote.

Selling options contracts is rather straight forward. What part is giving you trouble?

 

[Rocko]

Psst....they are hypothetical options for hypothetical stock.

That doesn't make any sense. If you understood anything about options you'd laugh at what you wrote.

Selling options contracts is rather straight forward. What part is giving you trouble?

ok, lets start with when do these "hypothetical" options expire?

 

[percysunshine]

That doesn't make any sense. If you understood anything about options you'd laugh at what you wrote.

Selling options contracts is rather straight forward. What part is giving you trouble?

ok, lets start with when do these "hypothetical" options expire?

Hypotheticaly, on the usual expiration date depending on the issue and term.

Here, this might help;

Covered Call Options | Be an Option Seller and Earn Money by Renting Your Stock

 

[Rocko]

Selling options contracts is rather straight forward. What part is giving you trouble?

ok, lets start with when do these "hypothetical" options expire?

Hypotheticaly, on the usual expiration date depending on the issue and term.

Here, this might help;

Covered Call Options | Be an Option Seller and Earn Money by Renting Your Stock

Understand something - I was a professional trader for over ten years. Stop making a fool of yourself.