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Negusa Negast
I want to join but with so many different people jumping onto it, that draws attention might be best ya here on it already keep bringing info back
ABW Stock Exchange: All Things Investing
- Thread starter Inori
- Start date
Whatevathehell
Active Member
Options are contracts to buy stock at a set price.
They represent stock in lots of 100.. 1 contracts is like controlling 100 shares. As the underlying derivative..ie stock price goes up or down the contract does likewise..
They are a many advanced strategies involving options..the safest is probably as a hedge..insurance..against a long position
Whatevathehell
Active Member
Calls and puts are your 2 types of contracts you buy calls when you expect the stock price to I crease and puts when you think it will go down
Let's say walmart is $100 dollars share and you think it will go to 110.in the near future by buying a call contact with a 100 strike price you lock in the OPTION of buying walmart at 100 dollars a share no matter how high it goes...when you cash out you CAN EXECUTE THE OPTION AND pay 100 dollars for
100 shares or 10000 worth of walmart and sell it at market value or just sell the contract which has also.been increasing in value
Puts work the opposite. A put at 100 strike means you can sell 100 shares of walmart to the writer of the contract for 100 a share even if the stock goes to 1 dollar or even less than that
Or you can just the contract which has been increasing in value as the stock drops..
Let's say walmart is $100 dollars share and you think it will go to 110.in the near future by buying a call contact with a 100 strike price you lock in the OPTION of buying walmart at 100 dollars a share no matter how high it goes...when you cash out you CAN EXECUTE THE OPTION AND pay 100 dollars for
100 shares or 10000 worth of walmart and sell it at market value or just sell the contract which has also.been increasing in value
Puts work the opposite. A put at 100 strike means you can sell 100 shares of walmart to the writer of the contract for 100 a share even if the stock goes to 1 dollar or even less than that
Or you can just the contract which has been increasing in value as the stock drops..
Whatevathehell
Active Member
Contract prices are.based on time to expiration(because they can and will expire often worthless) how close the strike price which is the SET buy or selling Price OF THE STOCK and volatility of the stock it represents..gamestop was a fairly nonvolatile stock now atm..at the money..where contract strike and stock price is the same
..contracts are worth thousands...where before they were maybe 80 bucks a contract .generally the further the difference between strike and stock price the cheaper the contract....
..contracts are worth thousands...where before they were maybe 80 bucks a contract .generally the further the difference between strike and stock price the cheaper the contract....
Whatevathehell
Active Member
Anyone who owns 100 shares or more or have the money..collateral to buy a hundred shares of stock can sell contracts and clear money off the premium or the cost of the contract sold..for every 100shares you can sell 1 contract...you sells calls if you believe the stock price wl decline and puts if you think the price will increase
Welp (pic is a link)
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Hiram
Active Member
It’s cool. I had to get in just like I’m about to get in on that NAKD stock. I bought 200 shares of SIRI stock when it was below $6/share just cuz Warren Buffet bought 50 million shares of it last summer lol. It’s up to $7 right now.
Trilltx214
Layer cake
DOS_patos
Unverified Legion of Trill member
Whatevathehell
Active Member
They got it over 400
Well this is a first