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  • fatlittlepig
    replied
    Regarding selling the puts, seems like you would have to sell many many puts for it to be worth the trouble and then you would be partially exposing yourself to a very large liability in the scenario the stock goes to zero.

    Leave a comment:


  • Nysoz
    replied
    So with record volatility on gme, comes good premium from options. Like gme or not, there's money to be made. gme obviously isn't worth $300 or maybe even $200. But the puts a year out are worth something to people. With all the name recognition, share price, gamestop could raise money at any time. That should keep them in business for at least another year.

    If you look at the gme 1/2022 options chain, $1 puts are 0.16-17, $5 puts are $1.20-1.23. If you sell these you get 16% or 24% return in a year for the promise of buying gamestop shares at that price in a year. Heck there are $0.5 puts for $0.09 or a 18% return.

    The lowest gme got was $2.57 during the pandemic and being shorted into oblivion. Could it drop down there again or be bankrupt in a year? Sure, but I think unlikely. So it's a decent trade/returns if you don't think gamestop will be bankrupt in a year.

    There's much more premium on the call side, but selling those options you have to be crazy if you're doing it naked. Although, what're the chances that gme is $950 in a year?

    Leave a comment:


  • Peds
    replied
    can everyone move their banter over to this thread? well try to keep it tidy.
    keep this thread to its orignal intention: education, or actual specific questions about your trades.

    https://forum.whitecoatinvestor.com/...onal-investors
    Last edited by Peds; 01-27-2021, 11:37 AM.

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  • Tim
    replied
    Originally posted by CordMcNally View Post

    Smart vs. stupid...
    Exactly, each side will rationalize. It is a no-win philosophical debate at that point. It's always about the money. Money wins the debate. Winners vs losers.
    There are a ton of rich unhappy people and a ton of happy poor people. Unless you read the internet.

    Leave a comment:


  • Tim
    replied
    "I don’t mean to sound ageist, but the Gamestop story feels like a case of younger people who are more optimistic taking advantage of older people who are more pessimistic.
    Just think about how this all transpired. Gamestop is not some hot IPO tech darling that added .com to their name or pivoted to crypto. It’s a mall retailer that has been slowly dying for years now."
    Ben Carlson

    It's really a generational thing. The young innocents eating the old. We have become a country of predators in some way. Young vs old, poor vs rich, weak vs strong. minority vs majority, the lazy vs hard working, the untalented vs talented, the end justifies the means can always be rationalized. Jist a period we are going through.
    Good luck with the trading.

    Leave a comment:


  • formerly_cn
    replied
    Originally posted by Nysoz View Post
    Yeah buying puts trying to time the top is going to be expensive.

    what I was thinking was long dated put debit spreads. It caps your gains but I think a much safer bet
    I just needed 5 more days to learn spreads...now in this event it's hard to learn this or condors or butterflies

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  • Nysoz
    replied
    Yeah buying puts trying to time the top is going to be expensive.

    what I was thinking was long dated put debit spreads. It caps your gains but I think a much safer bet

    Leave a comment:


  • Zaphod
    replied
    Originally posted by Panscan View Post

    wow they have sucked you in too, lol this is great
    Im a known degenerate, I usually just do not talk of such things here. Though I did heads up my shorting the market in Feb, and when I got all in levered at the bottom. I did not talk of my crappy paper hands that sold shortly thereafter what went on to be a 10x portfolio had I held.

    Leave a comment:


  • Brains428
    replied
    Call vertical- Buy call at the money and sell call out of the money for the same expiration date. If you blow past both strikes, then you can sell the long call and take profits and cross your fingers the sold call comes back to the strike price. Once you get nearer the strike price, you can buy back the short position. Verticals decrease your initial outlay.

    -- It's still a bet and highly speculative.

    Leave a comment:


  • Jack_Sparrow
    replied
    Originally posted by Brains428 View Post
    Jack_Sparrow Have you thought about doing call verticals and legging out of the long position at the top while letting the short call regain on the drawdown?
    I'm not sure what this means. I'm open to suggestions. This is my first time buying options. I've just been buying OTM calls. I've got all my limits for sells on my calls in TD ameritrade. I set a couple at 45 then just selected 100 never thinking they would actually get called. So I was pleasantly surprised when most got called away today at 100. so I got lucky and sold a few at the top.

    I've been watching this like a hawk every minute. Everytime it hits the top, they halt trading. then the next thing you know stock has swung 30% easy. So I don't think anyone hits the top its gotta be luck like what I did with the limit orders.
    Last edited by Jack_Sparrow; 01-25-2021, 12:26 PM.

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  • Zaphod
    replied
    Originally posted by Brains428 View Post
    Jack_Sparrow Have you thought about doing call verticals and legging out of the long position at the top while letting the short call regain on the drawdown?
    If you could call it thered be no point to spreads, and thats a fun way to get margin called and end up broke of course.

    Leave a comment:


  • Brains428
    replied
    Jack_Sparrow Have you thought about doing call verticals and legging out of the long position at the top while letting the short call regain on the drawdown?

    Leave a comment:


  • Peds
    replied
    Again,...not a Tesla thread.

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  • xraygoggles
    replied
    Originally posted by Brains428 View Post

    Please don't forget diamond hand and rockets. I believe the rockets are innuendo.

    The biggest issue with some of those bets (which I believe is what's best to call them) is the time decay that might occur that may require a significant pop in the underlying to actually come out positive.

    Somewhere in all the noise of WSB, there are a few decent posts. I suppose there are worse ways to spend a weekend.
    Of course its a gamble.

    But to be fair, if you buy OTM calls, and the price goes up 25% in one day, u will make a few hundred percentage and then can sell the same day. That's exactly what happened on Friday, but it went up something like 60% I think.

    Leave a comment:


  • Brains428
    replied
    Originally posted by xraygoggles View Post

    oh yeah! i did some DD over this weekend, which consisted of spending a few hours going thru a crapload of wsb posts, and trying to decipher wtf they are talking about.

    what i gathered: buy as far OTM calls as u can on Mon AM, consider premarket GME shares, then collect tendies.

    seems foolproof: what could possibly go wrong? /s
    Please don't forget diamond hand and rockets. I believe the rockets are innuendo.

    The biggest issue with some of those bets (which I believe is what's best to call them) is the time decay that might occur that may require a significant pop in the underlying to actually come out positive.

    Somewhere in all the noise of WSB, there are a few decent posts. I suppose there are worse ways to spend a weekend.

    Leave a comment:

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