How do I fix an incorrect options order?

I think I placed my options trade incorrectly. What should I do?

Most new members make at least one mistake. Long-time members call this “the price of learning.”

Do not hold onto a mistaken trade. If you do, you’ll be on your own because Jim and the other members won’t give you any personalized guidance on it.

The best way to correct a mistake is to just reverse the original trade.

So if you Bought to Open ABC and Sold to Open DEF,

you’ll want to Sell to Close ABC and Buy to Close DEF.

Use a Market order instead of a Limit order to ensure the trade goes through quickly. (If you need additional help with closing the mistaken trade, ask your broker.) You may suffer a loss, but the education will be worth every penny.

And, please, do not ask for guidance about mistaken trades on the Stock Talk forum. You’ll only confuse other members.

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