>learned technical analysis for crypto currency
>impossible to use with TA cause gay volatility and lose a lot of money
>learn about options in the stock market
>bought puts on Nvida stock
>able to put a down payment on a mansion in less than a month from puts
>pic related
why are you not in stocks yet?
crypto options when
lol sign me up
eli5 options
like i buy a put, expecting it to go down. buy a call, expecting it to go up. but what the fuck is strike price? why are options like 1.38 when the stock is a few hundred? run me through it, lets say i buy one for $25 now what?
you'll be hearing from the sec very soon
options are essentially betting with leverage on what the markets going to do in the future
you can already do this on Bitmex by shorting/longing with leverage
buying an option is buying the right to buy (call) or sell (put) the underlying asset at the strike price at anytime up to an including the expiration date
wrong
had the market just moved sideways, he coulda sold his position at a loss right? id imagine he had very short expiry dates but lets say the day before expiration the price stayed relatively similar, could he exit with some loss?
this image is from reddit
OP should go back there, can't even samefag really jealous of the guy though, he started with $4k and turned it into $240k in 2 weeks
It's possible. But I'm more interested in how you determined it was the right decision and how you skim all / the companies.
If you wouldn't mind sharing, I'd appreciate it!
>he coulda sold his position at a loss right?
a considerable loss, with shorter term options the theta decay is worse
completely wrong.
it's more similar to buying $4k worth of lottery tickets and making $240k
i see. i was going to buy 120 dollars worth of tilray puts yesterday at open but im new to this so i got scared. i would have made 10x...
yes, options are great in that you can make money with sideways movements
the price action of an option is much more complicated than short selling or longing
there are options that are in the money which means the strike price is below the stock price for a call or the strike price is above the stock price for a put
but people also trade options that are out of the money where unless the option goes back to in the money it will expire worthless. in that case people are trading the time value of the option and volatility described by the greeks, time value is also applicable to in the money options
ok so lets say, I expect TTNP to hit $1 before November 30th. I'd buy a call at a strike price of $1 with an expiration date of November 30th?
How do u make money for strike price below stock on a call and above for puts? When i see the prices for those its always so high
no that would be worthless.
you would buy a call with a lower strike price than $1 as come November the right to buy TTNP under $1 would be very valuable
out of the money options still change price, so you speculate on those changes
heh nothing personnel
Strike price for a Call Option is the Price the Buyer of a Call Option has the Right to buy the underlying item/items at.
Strike Price for a Put Option is the Price the Buyer of a Put Option has the Right to sell the underlying item/items at.
A Call Option is "in the money" if the underlying's price is above the Strike Price.
A Put Option is said to be "in the money" if the underlying's price is below the Strike Price.
Just because an Option is in the money, doesn't necessarily mean you'll profit, because you have to account for the amount you pay to buy the Option (the Premium).
In terms of Options pricing, that stuff is quite Quantitative, and are often done in proprietary manners by Options Market Making firms.
But they're often based on things like "monyness" - whether the Option is in or out of them money, time till expiry, volatility of the underlying, whether or not the underlying pays dividends/some other kind of distribution which will impact its value, as well as the Risk Free Rate.
Market Makers are always trying to Hedge the Options they sell, and this gets into things like Delta Hedging (from the Black Scholes model), and they use a lot more complicated hedging models too, which I'd never understand.
As a Speculator, I prefer Futures and CFDs. Simple directional bets, right or wrong, end of story. None of this Mathwatsy, Partial Derivatives smartfag nonsense.
>Options they sell
*buy or sell
Options are to control risks and rewards on the stock prices. But people like OP use them as FD lottery tickets
cant wait to see this dude go all in for the 20th time and get JUSTed hard
That guy from WSB just added more on NVDA puts.