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!
Learned technical analysis for crypto currency
Justin Garcia
Daniel Robinson
>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
Adrian Gray
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...
Jack Taylor
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
Josiah Wright
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?
Josiah Fisher
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
Thomas Morris
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
Jose Martin
heh nothing personnel
William Davis
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.
Liam Rodriguez
>Options they sell
*buy or sell