I JUST LEARNED HOW TO TRADE OPTIONS. HOW IS NO ONE TALKING ABOUT THIS ON THIS BOARD. FREE MONEY. LITERALLY THE LEAST RISKY SHIT EVER.
I JUST LEARNED HOW TO TRADE OPTIONS. HOW IS NO ONE TALKING ABOUT THIS ON THIS BOARD. FREE MONEY...
Jaxson Watson
Isaiah Taylor
explain 4 brainlets
Leo Sullivan
SMG has some options trading in it. The rest of this board is shit up hourly by coinfags.
Options are an amazing way to make money. Honestly, I don't buy stocks anymore, just trade options. Now you gotta work on your timeline user. How far out are your expiries? And since you are new, learn about the Greeks. It's the core metric of options. You'll get dirty greeked eventually lad....
Aaron Scott
Its degenerate lottery tickets.
Unless you are writing covered options...you deserve to lose your money.
Daniel Ross
/smg/ reporting in! Unless you’re doing Buy/Writes like says, or patiently waiting each week to enter a position through Put assignment then you’re literally picking up pennies in front of a steamroller.
Ryan Bell
Options Contracts are traded on the Derivatives Market. They are a formal contract agreement between two investors for one investor to purchase the rights to either buy stock from the other investor, or sell stock to the other investor, at a certain price.
With an Options Contract, the Owner of said contract has the right — but not the obligation — to exercise their contract before the expiration date that is listed on the Option.
There are two kinds of Options Contracts: the Call and the Put.
The (Right to) Call (Away Shares of Stock from the Buyer at $XX.xx per Share) is purchased by a speculator who believes the underlying stock price will increase in value by a lot before the expiration. Example: The underlying stock is trading on Monday at $9.00. You purchase and hold a Friday Call Option at the $10 Strike Price. “ABC Corp. invents teleportation!” Stock shoots to $15.00. You can exercise your options contract and Call the shares away from dude for $10 and immediately have $15 per share — making $5 per share in the process.
The (Right to) Put (Your Shares up for sale at $XX.xx per Share) is purchased by someone who is full of FUD, or someone who is looking to enter the underlying stock at a lower price. They work opposite of a Call.
Now, while all this trading inside of trading tradeception bullshit is going on, the Premium (I.e.: the Price the Buyer pays to own the Option Contract) changes as the price movement of the underlying stock becomes more favorable. If your premium paid to buy an Option is $0.20 per 100 Shares ($20), and the underlying stock moves favorably, then the Premium could shoot up to $3.50 per 100 Shares. The Option Buyer can now become the Option Seller and flip the Option Contract for a profit of $3.30 per 100 Shares — which is a profit of $330 off of spending a $20 bill. Super-leveraged gambler trading in a nutshell...
Ayden Roberts
Can someone explain me something. So Thomas Cook and Tesla are basically free falling. Is buying puts right now expensive? Or actually profitable? Are the fees on the puts ridiculously high or am I missing something? Why isn't everyone buying puts on crashing stocks? Is there always demand for buyers of puts as lont as a stock is traded?
Like you have a stock which is doing -10% daily and you buy a put which says well stock gonna be 0.9^x in x days. If that trend is visible why would people buy your puts in x days and not just wait because "well clearly it is free falling still why would I buy your put now to exercise it?". As it is going to expire anyway.
Noah Lewis
>baby's first successful trade
come back when over 50% oif your trades are succesful then you can talk
Charles James
>find biotechs with catalysts a bit out
>buy a call after that
>sell before the catalyst
>or hold if you wanna risk it
Free. Literally free. Money.
Asher Nelson
>Yes
>Depends
>See #1
>Most Normans do not know what they are.
>Yes
>The buyer buys the Put for a low Premium and then re-sells it back to suckers and market makers for a higher Premium because super leverage. If exercised, then it’s assigned to the dude who sold the Put and you cap your losses at X.