>I'm new to the stock market, what stocks should I buy? Before you buy anything, stop making the general with trips, make a brokerage account and read investopedia articles and/or the books in the OP list. If you don't have a broker, you can't buy stocks and if you blindly buy things without understanding how the stock market works or doing any research on the individual stocks you're buying, you will lose money and it will be entirely your fault.
Yes brother. Just sit back and collect that 5% divy and wait for the run back up to the top.
Jacob Moore
Please buy it
Julian Cox
What do you think about BABA for the long term? It's growing like crazy, but still looks really expensive.
Adam Morales
how do I short both the EU and england come march
Logan Rivera
Short EWU or EWUS
Lincoln Peterson
theyre gonna increase that divy too. No cuts on this Buffet and 3G backed. Same with Gis. Historically they always stagnate for a year or so but continue to rise
Yeah I wanted to buy Smuckers really bad when it was under 100 for so long but at the same time Like 1000 other stocks I love on my watchlist were Cheapies so I didnt have time
there's a hurricane barreling towards your house you see one grocery store selling water for $300 a gallon you go "lmao cucks this other grocery store is selling it for $275 I'll just buy it there" thinking you've just gotten a steal of a deal
Parker Richardson
I wanted to hedge against T taking a poo but I didn't need them
you can see my portfolio is for divs, my frens besides for odp that's just there for memes
Tyler Myers
How did you get a photo of LCI guy?
Nathan Price
Probably won't get fucked, but won't make all that much.
Option volatility are partly determined by volatility expectations, which implied volatility (IV) reflects. Usually IV is elevated around earnings and other events, then drops enormously after the event passes--meaning that the elevated option premiums drop. So if you bought options and you were directionally right on the event, you'd make money on the delta (directional exposure) but lose money at the same time on vega (volatility exposure). Conversely, selling options lets you benefit from falling IV.
Anthony Reed
lmao now you know how i felt when this happened to you on MU weve come full circle
Justin Hughes
>Options are partly determined by volatility expectations, which implied volatility (IV) reflects. oops, fixed.
Anthony Williams
this makes sense but what does 300% IV actually mean compared to 200% IV?
Easton Thompson
BABA is the real reason jeff is getting a divorced
Hudson Rivera
Why won't AMD go down and stay there! AAAAAAAAAAAAAAAA my puts!
All else equal the 300% IV option will be more expensive. If expected volatility decreases, the IV goes down and the option loses value. This happens often after earnings announcements, especially for out of the money options. Inexperienced traders will buy call options, thinking they're just betting on the stock price going up and then go mad when the call loses value even though the stock is up 5% (and IV is down to, lets say, 100%).
Blake Thomas
it means dont fucking buy them simple as
you SHOULD sell them tho
no one learns options by getting everything right desu in fact the fuckers who start off with a shitton of big wins are the ones who usually blow up
Juan Nelson
It can be the difference between an option value of $5.00 or $4.00 (for illustrative purposes; I'm not going to run something through a model for exact values).
Jason Turner
Lol hey Comfy remember when you asked what anj SMA was
But once you lock into an option the IV can't change right?
Brody Ross
Can someone explain to me what the catch is for 12% div REITs like WMC?
Is it just that there's not really much growth potential so it isn't a good long-term hold?
Easton Lee
oh my sweet child...
srsly senpai do some reading on the greeks or your gonna hurt yourself
Aiden Adams
IV is ever changing just like the underlying. When you buy an option, you're locking in a particular IV and underlying that you're buying at, but that doesn't mean it can't move against you.
Austin Miller
>lock into an option >lock Can't tell if this is an honest question
Josiah Roberts
I can't believe this thread sent me $700 to manage for them via Autism Inc IV changes constantly friend, please don't trade options
Colton James
Hmm...
If I buy AMD puts/calls right now when the volatility is around 50% with an expiry date after earnings... will the volatility spike up to 300% and make my options be worth way more?
AMD won't hit 300% like NFLX, but it could go up in time, if you wanted to make decent risk/reward IV profit plays you should've bought the options a month ago
Andrew Robinson
I actually looked up what IV means. IV is the percentage movement within one year that the option contract price implies is within one standard deviation.
So IV of 300% means the options contract's price implies a potential price move of 3x within one year. For weeklies, you have to correct from one year to one week, which implies a standard deviation price move of +- $145.
Anthony Rogers
is calculus something you have a background in? if so, go look at that "options, futures and other derivatives" book.
if not, theres those two two hour vids that used to be in the OP that are a good crash course desu
point is, dont trade them till you understand the maths. period.
ez come, ez go if i was making 20k in a day id give you $700 myself just to see what you do. investing is cool and all but im always more fascinated with what people do when you throw money at them
Julian Rodriguez
The only thing is with buying them months ago is that the time value makes them more expensive.
I wouldn't know if it's worth it, I'd be buying options that expire pretty much after earnings, thus I'd lose like 99% of the time value premium.
Justin Davis
look up the formula on how its calculated. its kinda complex point is, you buy now and vega will crush you. you sell contracts now and its basically free money
Anthony Mitchell
spreads are for managing theta decay
that being said I don't really try to profit off strangles in this fashion, so idk
Landon Mitchell
read investopedia on the fly while trading contracts, you'll learn real fast or not at all
>If I buy AMD puts/calls right now when the volatility is around 50% with an expiry date after earnings... will the volatility spike up to 300% and make my options be worth way more? It will probably fall after earnings because options values are already elevated in anticipation of earnings--you know, people buying calls in case the stock has a great report and people buying puts to cover their losses in case the report is bad. Think about it, why would IV increase *after* people know what's in the report? More likely you'll see people exit their speculations and hedges afterwards which depresses options prices.
Logan Ward
buying them far out will shield you somewhat from this IV crush as well
same thing with going ITM (tho this is a fuck awful idea for ERs desu)
Isaiah Robinson
IV isn't that hard to understand. If you have a stock that you expect to move up and down a lot, then the chance of an option ending in the money is higher compared to a stock that barely moves. Let's say there's 2 stocks at $50 with identical greeks, but one can move $10 on any given day while the other can only move $1 a day. You want to buy a call with strike of $60. Clearly, you'd prefer to buy the call on the stock which moves $10 a day because it's much more likely to end up at $60+ than the other stock.
James Morgan
I think he's thinking to sell them as it gets closer to the ER
but like this guy says selling options is probably the best way to profit off of this
Elijah Taylor
Made money off of FNGU. Need a meme, pls no options I'm not smart enough for them
Don't worry about people saying you need to learn the 'maths' behind it or the formulas driving it. It's just as necessary to learn that as it is to learn mechanical engineering and aerodynamics to drive a car.
Jose Price
who GALT bagholder here? relegated to be, at best, a combination NASH treatment but never a backbone treatment. wew lad. oh well, can probably cash out on same fake hype for the dilution hits
real NASH king (GENFIT) will IPO on NASDAQ 1H 2019. if you want a penny NASH stock, VKTX
Nathan Fisher
>It's just as necessary to learn that as it is to learn mechanical engineering and aerodynamics to drive a car Buying stocks, or even CFDs, is like driving a car. Stock goes up, you profit. If not, you don't. Buying options is more like flying an airplane.
Josiah Barnes
>not making money exclusively off of particular greeks after masturbating over calculus for days pleb
tastytrades is good and they do interesting vids on stuff no one talks about, but FUCK i always have to skip like 40mins in to dodge them talking about their fucking kids or something retarded
airplanes arent too much different from cars desu theres just an extra axis
id liken it more to flying a heli theres two sticks, a throttle, and two pedals. you neglect even ONE of them and you crash
Ian Ortiz
meant for too many purple ids ITT
Liam King
Robinhood makes it seem like if I buy this option on Kraft, I would profit if it is $51.70 or higher by the expiration date and lose all my money under it. So what is the IV if I buy this option and how could it change? It seems so simple, what am I missing out on?
>Buying options is more like flying an airplane. Maybe one on autopilot. It's actually pretty simple and straightforward. The greeks tell you very succinctly how you're positioned and where your risks are.
Evan Peterson
>selling options is probably the best way to profit off of this i dont know if SS officer still posts here but he had the right idea with short delta neutral strangles on almost every ER desu
Cooper Bell
kinda surprised people are still using robinhood, what volumes are you trading if you can't handle a real brokerage fee?
Isaiah Lewis
kek RH, this is the info you want, I don't use RH so not sure where to find it there
haven't seen him post since uh, early fall I feel like
slippage is horrendous on options markets desu not to mention CDEL is MM for almost all of em. sometimes i DONT wanna do 30 debit spreads, ya know?
Brody Sanders
I have 8k currently mostly invested long term but with a little I would like to gamble with.
I used to have more in Scottrade but didn't like the system when bought out by TD Ameritrade so cashed everything out a year or two ago and just started buying again.
Eli Jackson
That's what makes them cozy, though. That's way better than some 25 year old soi boy californian talking into a maximum reverb camera about options or some dry old used car salesman type guy from New York.
Nathan Harris
>haven't seen him post since uh, early fall I feel like aww man, i hope that doesnt mean what i think it does i was always telling him to cover his ass with those short options positions. even a stop buy on a contract as a stop loss is better than nothing.
i have a bad feeling he got fucked hard on one of those and met the unholy 0.01% on one of those positions. prolly got nuked entirely in one day
yea they kinda ''do'' double as some sort of talk radio desu but when im trying to learn, i try to go for vids that are more to the point. tho ill always prefer books.
Jeremiah Peterson
First
Dylan Perez
i wish they'd write greeks as derivatives with units instead of giving them retarded names
How to invest cash in CHF? Short term government bonds literaly yield negative. Interest on bank account is 0.05%. Inflation is over 1%. Bought a bit of CHCORP but the yield is also awful.
Please absolute brainlet here how can I be fucked over besides this not hitting the strike price? Are you telling me I can still somehow lose money if Kraft is $70 in July?
yeah...that definitely matches around the time I last remember him posting
you can't lose more than $60 with that purchase no matter what KHC's price is, but you can still lose if you hold until expiration and KHC is between 57.5-57.8
Ayden Morales
Please explain
Levi Bailey
>auto expire even it doesn't reach your strike price
what the fuck, what I wanna burn money? fuck you RH
fug he prolly got baited into the really high IV in the middle of the oct, thought it would calm down, and got absolutely nuked
F
>is in switerland >wants to invest cash in CHF im confus go to an ATM? what do you have right now? euros? you should easily be able to exchange them in any major city
Christian White
If it's at the strike price just buy the fucking shares if you want. What do you think options are?
Noah Cox
yes, if the stock is above your break even price you get money
otherwise, you lose money
Charles Johnson
this reminds me of the time my limit didnt fill on a bunch of ITM puts, i didnt notice, and i woke up on monday and was short 20000 shares of HYG
