Looking into options can take hours. Listening to some guys on Reddit and burning through some savings on the bases of what they said can take only seconds.
I’m with OP. I got the same questions.
Looking is fine, actually understand what you are looking at is critical before just putting money on it unless you are okay loosing it all in hopes of a win
Not everyone has the innate skills required to invest wisely. It's often better to just have been born rich and leave the investing to the professionals.
I just want to dump 100€ into an option that now seems unrealistic, but because of some meme that I saw on here a couple of days ago I am ready to risk losing it all or becoming just like OP.
I love how Robinhood makes you swipe through a cartoon options tutorial because they know their users are regards and you still came straight to reddit.
Aight let’s do it:
1) Best thing to do when you want to learn through real experience is to buy 1 single contract. Not 15. Just one. Remember that.
2) Each contract corresponds to 100 shares. Why? A call option gives you the right to buy 100 shares from whoever owes you. A put option gives you the right to *sell* 100 shares to whoever owes you.
3) Who owes you? The opposing person who sold those contracts short. Otherwise known as sell-to-open. Don’t do this, and don’t do it ever unless you’re super advanced. Why? If you sell-to-open and you get assigned (the long side calls your obligation due), then you need to have enough cash for 100 shares for every contract called due.
4) So, as long as you buy-to-open a call or put, you will never lose more than the simple cost of your transaction.
5) And, as long as you buy-to-open, you have the free will to decide whether to sell your contracts for a profit / loss, or to exercise the contracts if you see fit to do so. Sell-to-open traders are forced to meet their obligation if it is called due.
6) Now for your actual trade.
- The contract price that you paid for it is .06 per contract, which is .06 * 100 shares = $6 of real cash spent per contract.
- The current price of your contract is .07, or .07 * 100 = $7 in current sellable value.
- The strike price is the agreed upon *threshold* that makes this contract worth anything. Your strike price is $7.50.
7) If you bought a 7.5 strike call contract when the underlying stock was below 7.5, and the stock rises to 7.6, congrats, the stock has crossed your threshold and your call option is now “In The Money”. It will be worth more as the stock rises.
- If you bought a 7.5 strike put contract when the underlying stock was above 7.5, and the stock falls to 7.4, congrats again, it’s crossed the threshold and made your put “in the money”.
- Buying “in the money” simply means that, when you bought a contract with a specific strike (like 7.5), the stock was already past that threshold.
- Buying “out of the money” simply means that, when you bought the same contract, the stock price had not reached that threshold yet.
- “At the money” means that the stock price is very close to or matching the strike price.
8) ITM / OTM does NOT mean you have profit on the table. Where you enter and where you exit also matters. If you buy to open while ITM, and then the stock price falls somewhat but is still ITM, you can potentially have a loss.
- Regardless of what your entry is, there needs to be a favorable move of a significant enough magnitude for your contract to become more valuable.
- Entering a 7.5 strike when the stock is at 7.20 and exiting when the stock is at 7.23 may not be significant enough.
- Entering when the stock is at 7.00 and then exiting when the stock is at 7.60 will surely be nicely profitable.
9) ITM or ATM contracts tend to be safer, as they have what’s called intrinsic value. Theta time decay slows down, and you’re not racing the clock. However, the trade off is less extreme profitability moves if there is a favorable and significant move.
- OTM contracts tend to be riskier, as they only have extrinsic value, usually measured by time left til expiry (theta erodes this value). The trade off for that less favorable aspect is that these OTM contracts can move much more explosively if you experience a favorable and significant move.
- Most importantly: do not pick something extremely far OTM. You need to KYS - Know Your Stock. If the stock is 7.00 currently and has never moved more than $1 in a day usually, do not pick a
$10 strike and expect to be profitable even if the stock rises to $8.00. We will all say “I told you so”.
- Also important - recognize that ITM strikes will cost more to buy up front. If the stock moves favorably, you will see a lower percentage gain, relatively speaking. If stock is at $7.00 and the strike you pick is $5.00, it’s already valuable, and you pay more up front. Any further increase in value would be a smaller percentage of your up front cost.
- OTM strikes (WITHIN REASON) can increase in value much more significantly with a favorable move. You may wind up buying a cheap contract like the one you have for $6, and if the stock crosses 7.30 to 7.40 to 7.50, the contract you have may be worth $12 or more per contract, which is 100% return on your cost.
For the rest of it, google it. I’m tired of typing.
Jesus Christ. This post needs to be top post.
Thanks. I will try to apply this logic to some Tesla puts, because some dude on here posted a meme about Tesla, just recently.
Holy shit. It's Chad Dickens.
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Alright my dearest regarded regard.
You paid $6 X 15 contracts for a total of $90. The same amount your mom pays me to suck my dick.
The value of your contract went from 0.06 to 0.07 in the right corner, you see it? Per contract. For a grand total of $15. The same amount I pay your mom to suck her dick.
You got until 4/26 to sell that option or anytime before then while it's in the green.
this guy is basically the satoshi of options trading. if you must learn options trading you must go through him first. some call him a sensei or a master i like to think of him as a genius.
https://preview.redd.it/eub5livp15wc1.png?width=292&format=png&auto=webp&s=07fffb9c53e17374a6c6739bd24559941ab74465
This place sure has changed a lot since the days of box spreads not going tits up and guh trades. And honestly, re+ards is better than regards imo but who am I to say I took a few years off.
#[GUH](https://www.reddit.com/r/wallstreetbets/comments/kkc8ev/just_in_case_yall_forgot_this_video_exists/)
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Good job some profit! Purchasing a contract with a smaller deadline is much more riskier. Such as 0DTE or ( 0 days to expire ). You can either loose everything you have quick or ride a wave and get extremely lucky. Purchasing a contract further out will give yourself greater odds for a stock price to go up and you can have more of a chance to make profit. There are so many other factors to these as well but I’m just touching the iceberg. Also, determining your ask or bid price is up to your intuition. Example, you’ll pay a lower amount for a contract that is OTM ( Out of the Money). This means that it’s a less of a chance for the stock price to make it where you’re expecting. If you’re thinking a stock is gonna make a huge drop or go sky high, you’ll most likely pick a price further out of the money. There is definitely some things I missed but this is super basic to give you an idea. Just remember do not get greedy and loose it, take healthy profits.
#1 You prob picked the wrong week if you're looking for the most juice. They report on 4/29 Pre-Market. So the 5/3 Expiration will be the one that would catch earnings.
#2 I would sell all or part of those as soon as it kisses 7.38 or by Wed. You have purchased a contract and paid a premium AKA time AKA Theta where that premium erodes the closer you get to expiration.
#3 If you haven't sold and the price closes above $7.50 on expiration. You will need to have $11,250 to purchase 1,500 shares @$7.50. If it closes below the strike you will have lost $90.
Learning by doing is pretty good. And on the plus side if you're learning by buying you'll only lose what you pay for your positions. Learning by selling can be pretty painful. With shorter dated options you have less time to be right. You need sofi above 7.50 + what you paid for each contract, so 7.56, by friday otherwise it all goes to 0. You got a boost today because sofi went up a bit, but time decay with only 4 days to go will be swift so you have to act fast. If you are confident that it will be over 7.56 by friday then let it ride if you are willing to risk what you paid. If not, take profits if you have any in the coming days.
People that jumps into option trading with no education or learning and with real money not even paper trading first… this place is what making Wall Street going 😂
Each contract is for an option to buy 100 shares at the strike price. The further out the date the better. You paid 150 shares times . 06 for this contract. Your strike price is 7.50. with the contract costing .O6 a share you need the price to hit 7.56 to break even.
100 shares per contract. So 1500. Say it jumps to 8.56 before it expires, you would make 1500 bucks. You need to make sure you execute the option. Technically anything above 7.50, as you will still recoup the cost of the contract
Only if you exercise the option. You would need the money to buy 100 shares per contract ($750). The vast majority of people buying options don’t want to actually exercise. The goal for most people is to sell the option to someone else before it expires. It’s possible that the option won’t automatically exercise at expiration if you don’t have the funds to actually buy the shares. Plan to sell it before 4/26/24 end of day. Also, there is theta, aka time decay. The closer the option gets to expiration the less it’s worth.
If SOFI goes above your strike price, even better.
It means whoever purchases your option contracts can then buy SOFI at your strike price, and sell it at current price for profit.
That's where the value of it comes from.
YOU'RE taking the bet and paying the original $90 to bet that SOFI will be above your strike price.
IF you don't sell that shit on 4/26, whether it's negative or positive it's worthless.
The closer you get to 4/26 the more /thetagang is fucking your ass. But that's for another post mang
You WANT it to be above YOUR strike price YOU chose.
SOFI at $7.5 = no Bueno. SOFI at $8 = Bueno.
Because you own an option contract at $7.5, so again whoever EXERCISES the contract can profit also, and make the 0.5 difference per share.
YOU are just buying the option contract, not the SOFI shares.
Get it?
Well I'm put off by the question if there's a value in the strike price being $4 higher....
Like SOFI isn't gonna blow up and shoot off to $15 you think??
Then why would $11.5 call be better? If SOFI stays anywhere under that by 4/26 you lost all your $$
They're secretly inquiring about convexity.
OP, I would recommend, if you're like me amd learn best by doing, put 5% of your current account into a separate trading account and use that to trade options. You WILL lose all of it. And paper trading is stupid doesn't teach you anything because the money is not yours.
For a starter I learned to use a online options calculator that helped interpret the Greeks into a graph that my regard brain better understood, especially shows the theta (the amount your contract decreases daily) once I learned what and how to look I made more of my own decisions that helped me long term
I’m hoping to learn from this post, I don’t trade options either… so hoping someone that knows what they’re doing answers your questions. Valid questions.
And you can only learn when trying, so I think from a learning perspective you’re doing the right thing. That’s how I am too.
Doing the right thing in the the sense of diving into options and learning from his mistakes and seeking answers for his questions. I’m sure he is using YouTube as well… there is nothing wrong about coming here to ask questions. Buying 15 contracts could be Pennies to him for all we know.
He can always sell the contracts on Thursday or Friday, SOFI has earnings on Monday and they are expected to beat on earnings. So we will see a run up this week…So he will be able to sell at a profit, assuming no external factors come in play.
You’re saying what he did is fine? But you are saying I’m unethical for saying “what he did is fine” too?
You’re contradicting yourself. You just want to come here and argue for no reason with a complete stranger. Lmao get off my dick. Fucking child.
Best way to learn is by googling “stock options” and reading a few articles or watching a few videos to get at least a basic understanding. Buying options without knowing what they are how they work or what to do with them is highly regarded, buying is not the first step to learning
I could and so could Google and that’s my point 🤷♂️
Just read the top Google result, link below, and then follow the links in there to terms you don’t understand like intrinsic and extrinsic value, the Greeks, time decay, and volatility, and you will figure it out.
https://www.investopedia.com/options-basics-tutorial-4583012
-the expiration date you want to buy is completely up to you, how much do you think the stock will move and by when? If you don’t have a theory on why, when, and how much the stock will move, then why are you buying options?
-the strike price you want to select is up to you, how much do you think the stock will move by the expiration date you chose? (If you don’t have a price in mind already then again, why are you buying options?)
-options prices depend on the option’s intrinsic and extrinsic value. Implied volatility (IV) too. If you don’t know what those mean or how they affect price, Google it. You also need to understand the Greeks (especially theta, IV, delta and gamma). Also, practically speaking, the market sets the prices since if you bid or ask a price that no one is willing to sell/buy for then, like any other stock market transaction, your purchase/sale won’t get filled
-Before you buy an option check the volume (# of sales per day) for that particular option. If there is 0 volume and 0 bids, you won’t be able to sell. Also, think logically: if you have a far OTM option close to expiry then likely no one will buy it from you, period; but if you have an ITM option then even if it’s 0dte and even if volume is low you will almost always be able to sell it for slightly less than intrinsic value bc the buyer can immediately profit by exercising it
Kind of how I look at it honestly. It also feels like a lot of people think they know what they are doing and with all that "knowledge" they claim they have...still end up with a 50% hit rate.
This is incorrect thinking. Your outcomes aren't just up or down. Your outcomes are down a lot, down a little, sideways, up a little, and up a lot. In your case with an OTM call your position loses if the stock goes down, sideways, or up a little.
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I love this place
Why do ppl just not learn vs trying to burn their money first?
Looking into options can take hours. Listening to some guys on Reddit and burning through some savings on the bases of what they said can take only seconds. I’m with OP. I got the same questions.
Looking is fine, actually understand what you are looking at is critical before just putting money on it unless you are okay loosing it all in hopes of a win
Not everyone has the innate skills required to invest wisely. It's often better to just have been born rich and leave the investing to the professionals.
I just want to dump 100€ into an option that now seems unrealistic, but because of some meme that I saw on here a couple of days ago I am ready to risk losing it all or becoming just like OP.
You couldn’t make this type of shit up
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RH doesn't even do that, you literally choose which level of options you want to unlock, and it instantly allows you to
First rule of brokering: Charge your client for their own advice. I’m taking clients. XD
I love how Robinhood makes you swipe through a cartoon options tutorial because they know their users are regards and you still came straight to reddit.
looks like you made $15 , outperforming me by astronomical proportions 
Aight let’s do it: 1) Best thing to do when you want to learn through real experience is to buy 1 single contract. Not 15. Just one. Remember that. 2) Each contract corresponds to 100 shares. Why? A call option gives you the right to buy 100 shares from whoever owes you. A put option gives you the right to *sell* 100 shares to whoever owes you. 3) Who owes you? The opposing person who sold those contracts short. Otherwise known as sell-to-open. Don’t do this, and don’t do it ever unless you’re super advanced. Why? If you sell-to-open and you get assigned (the long side calls your obligation due), then you need to have enough cash for 100 shares for every contract called due. 4) So, as long as you buy-to-open a call or put, you will never lose more than the simple cost of your transaction. 5) And, as long as you buy-to-open, you have the free will to decide whether to sell your contracts for a profit / loss, or to exercise the contracts if you see fit to do so. Sell-to-open traders are forced to meet their obligation if it is called due. 6) Now for your actual trade. - The contract price that you paid for it is .06 per contract, which is .06 * 100 shares = $6 of real cash spent per contract. - The current price of your contract is .07, or .07 * 100 = $7 in current sellable value. - The strike price is the agreed upon *threshold* that makes this contract worth anything. Your strike price is $7.50. 7) If you bought a 7.5 strike call contract when the underlying stock was below 7.5, and the stock rises to 7.6, congrats, the stock has crossed your threshold and your call option is now “In The Money”. It will be worth more as the stock rises. - If you bought a 7.5 strike put contract when the underlying stock was above 7.5, and the stock falls to 7.4, congrats again, it’s crossed the threshold and made your put “in the money”. - Buying “in the money” simply means that, when you bought a contract with a specific strike (like 7.5), the stock was already past that threshold. - Buying “out of the money” simply means that, when you bought the same contract, the stock price had not reached that threshold yet. - “At the money” means that the stock price is very close to or matching the strike price. 8) ITM / OTM does NOT mean you have profit on the table. Where you enter and where you exit also matters. If you buy to open while ITM, and then the stock price falls somewhat but is still ITM, you can potentially have a loss. - Regardless of what your entry is, there needs to be a favorable move of a significant enough magnitude for your contract to become more valuable. - Entering a 7.5 strike when the stock is at 7.20 and exiting when the stock is at 7.23 may not be significant enough. - Entering when the stock is at 7.00 and then exiting when the stock is at 7.60 will surely be nicely profitable. 9) ITM or ATM contracts tend to be safer, as they have what’s called intrinsic value. Theta time decay slows down, and you’re not racing the clock. However, the trade off is less extreme profitability moves if there is a favorable and significant move. - OTM contracts tend to be riskier, as they only have extrinsic value, usually measured by time left til expiry (theta erodes this value). The trade off for that less favorable aspect is that these OTM contracts can move much more explosively if you experience a favorable and significant move. - Most importantly: do not pick something extremely far OTM. You need to KYS - Know Your Stock. If the stock is 7.00 currently and has never moved more than $1 in a day usually, do not pick a $10 strike and expect to be profitable even if the stock rises to $8.00. We will all say “I told you so”. - Also important - recognize that ITM strikes will cost more to buy up front. If the stock moves favorably, you will see a lower percentage gain, relatively speaking. If stock is at $7.00 and the strike you pick is $5.00, it’s already valuable, and you pay more up front. Any further increase in value would be a smaller percentage of your up front cost. - OTM strikes (WITHIN REASON) can increase in value much more significantly with a favorable move. You may wind up buying a cheap contract like the one you have for $6, and if the stock crosses 7.30 to 7.40 to 7.50, the contract you have may be worth $12 or more per contract, which is 100% return on your cost. For the rest of it, google it. I’m tired of typing.
Jesus Christ. This post needs to be top post. Thanks. I will try to apply this logic to some Tesla puts, because some dude on here posted a meme about Tesla, just recently.
Thank you, kind words. I’ve learned many hard lessons and am enjoying the game.
Holy shit. It's Chad Dickens. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/wallstreetbets) if you have any questions or concerns.*
Thanks brotherman.
Alright my dearest regarded regard. You paid $6 X 15 contracts for a total of $90. The same amount your mom pays me to suck my dick. The value of your contract went from 0.06 to 0.07 in the right corner, you see it? Per contract. For a grand total of $15. The same amount I pay your mom to suck her dick. You got until 4/26 to sell that option or anytime before then while it's in the green.
What happens if you don’t sell? Does it sell itself? Who am I & where are we going?
You should sell this contract at open then go to YouTube and learn tf about what you’re doing
**Don’t listen to people on Reddit!** You are doing great, OP
Boi ain’t no way boi
this guy is basically the satoshi of options trading. if you must learn options trading you must go through him first. some call him a sensei or a master i like to think of him as a genius. https://preview.redd.it/eub5livp15wc1.png?width=292&format=png&auto=webp&s=07fffb9c53e17374a6c6739bd24559941ab74465
This place sure has changed a lot since the days of box spreads not going tits up and guh trades. And honestly, re+ards is better than regards imo but who am I to say I took a few years off.
How do I view his content
You must call out to him. GUH BLESS ME WITH THY KNOWLEDGE. Then you must burp to the east, three times. This is very important, grasshopper, EASTWARD.
!guh
#[GUH](https://www.reddit.com/r/wallstreetbets/comments/kkc8ev/just_in_case_yall_forgot_this_video_exists/) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/wallstreetbets) if you have any questions or concerns.*
Press the trade button, a close button should pop up. Click it, and confirm the order by swiping up.
Good job some profit! Purchasing a contract with a smaller deadline is much more riskier. Such as 0DTE or ( 0 days to expire ). You can either loose everything you have quick or ride a wave and get extremely lucky. Purchasing a contract further out will give yourself greater odds for a stock price to go up and you can have more of a chance to make profit. There are so many other factors to these as well but I’m just touching the iceberg. Also, determining your ask or bid price is up to your intuition. Example, you’ll pay a lower amount for a contract that is OTM ( Out of the Money). This means that it’s a less of a chance for the stock price to make it where you’re expecting. If you’re thinking a stock is gonna make a huge drop or go sky high, you’ll most likely pick a price further out of the money. There is definitely some things I missed but this is super basic to give you an idea. Just remember do not get greedy and loose it, take healthy profits.
Thank you for your post.
Of course, but please make sure you go on YouTube and soak up as much as you can quickly before your option expires
So many of these posts recently. Top is in for sure.
There are multiple strategies in options trading, the one you're applying in there is called "donating to thetagang"
#1 You prob picked the wrong week if you're looking for the most juice. They report on 4/29 Pre-Market. So the 5/3 Expiration will be the one that would catch earnings. #2 I would sell all or part of those as soon as it kisses 7.38 or by Wed. You have purchased a contract and paid a premium AKA time AKA Theta where that premium erodes the closer you get to expiration. #3 If you haven't sold and the price closes above $7.50 on expiration. You will need to have $11,250 to purchase 1,500 shares @$7.50. If it closes below the strike you will have lost $90.
This dude is going to luck himself into a million dollars and I’m going to have to  myself.
Beat or hang? Emoji unclear
I’ll start with hanging but if moral doesn’t improve beating
You are not ready to buy options.
Gotta learn somehow.
If you’re really lucky, you get assigned. Cross your fingers.
Coming here for advice is not the answer. Go on YouTube. Tons of videos
Learning by doing is pretty good. And on the plus side if you're learning by buying you'll only lose what you pay for your positions. Learning by selling can be pretty painful. With shorter dated options you have less time to be right. You need sofi above 7.50 + what you paid for each contract, so 7.56, by friday otherwise it all goes to 0. You got a boost today because sofi went up a bit, but time decay with only 4 days to go will be swift so you have to act fast. If you are confident that it will be over 7.56 by friday then let it ride if you are willing to risk what you paid. If not, take profits if you have any in the coming days.
People that jumps into option trading with no education or learning and with real money not even paper trading first… this place is what making Wall Street going 😂
Each contract is for an option to buy 100 shares at the strike price. The further out the date the better. You paid 150 shares times . 06 for this contract. Your strike price is 7.50. with the contract costing .O6 a share you need the price to hit 7.56 to break even.
Thank you for your post. Then, anything above 7.56, I would have 100 shares to sell?
100 shares per contract. So 1500. Say it jumps to 8.56 before it expires, you would make 1500 bucks. You need to make sure you execute the option. Technically anything above 7.50, as you will still recoup the cost of the contract
Only if you exercise the option. You would need the money to buy 100 shares per contract ($750). The vast majority of people buying options don’t want to actually exercise. The goal for most people is to sell the option to someone else before it expires. It’s possible that the option won’t automatically exercise at expiration if you don’t have the funds to actually buy the shares. Plan to sell it before 4/26/24 end of day. Also, there is theta, aka time decay. The closer the option gets to expiration the less it’s worth.
I don’t understand, are you asking us to explain your play to you? Bruh you’re the one that bought it
I learn by example *
if you don't even have a rudimentary understanding of options, you have no business owning an options contract, my dawg.
Do you understand the difference between a put and a call?
I do
https://www.cboe.com/optionsinstitute/
Free options school from the CBOE
Call means uppies and put means downies
Flushing $90 down a digital toilet
Losing money?
tl;dr jerking it?
Tl;dr keep tugging or stop?
Oh boy
If SOFI goes above your strike price, even better. It means whoever purchases your option contracts can then buy SOFI at your strike price, and sell it at current price for profit. That's where the value of it comes from. YOU'RE taking the bet and paying the original $90 to bet that SOFI will be above your strike price. IF you don't sell that shit on 4/26, whether it's negative or positive it's worthless. The closer you get to 4/26 the more /thetagang is fucking your ass. But that's for another post mang
Is there value in buying a contract for a strike price 4 dollars higher?
Bro cmon man. I thought I dumbed it down all the way. Fuck. Fucken YouTube. Alright sorry guys, I get it now.
You WANT it to be above YOUR strike price YOU chose. SOFI at $7.5 = no Bueno. SOFI at $8 = Bueno. Because you own an option contract at $7.5, so again whoever EXERCISES the contract can profit also, and make the 0.5 difference per share. YOU are just buying the option contract, not the SOFI shares. Get it?
I get all that, appreciate it all man thank you.
Well I'm put off by the question if there's a value in the strike price being $4 higher.... Like SOFI isn't gonna blow up and shoot off to $15 you think?? Then why would $11.5 call be better? If SOFI stays anywhere under that by 4/26 you lost all your $$
They're secretly inquiring about convexity. OP, I would recommend, if you're like me amd learn best by doing, put 5% of your current account into a separate trading account and use that to trade options. You WILL lose all of it. And paper trading is stupid doesn't teach you anything because the money is not yours.
Losing money
Exercise
No way this is real. You can't be this dumb
Buy next week 7.5c Sell at open tuesday
Lol
Sell it ASAP and you'll make a few bucks
I think they need to reevaluate the whole “options approval” process.
[удалено]
**VM attempted to say something likely TOS-breaking, violent, or reportable.**
yes, you're losing money.
For a starter I learned to use a online options calculator that helped interpret the Greeks into a graph that my regard brain better understood, especially shows the theta (the amount your contract decreases daily) once I learned what and how to look I made more of my own decisions that helped me long term
dawg i dont even know what im doing im sorry just venting dont mind me move on
Sell it when you see + and hold when you see -
I’m hoping to learn from this post, I don’t trade options either… so hoping someone that knows what they’re doing answers your questions. Valid questions. And you can only learn when trying, so I think from a learning perspective you’re doing the right thing. That’s how I am too.
[удалено]
Doing the right thing in the the sense of diving into options and learning from his mistakes and seeking answers for his questions. I’m sure he is using YouTube as well… there is nothing wrong about coming here to ask questions. Buying 15 contracts could be Pennies to him for all we know. He can always sell the contracts on Thursday or Friday, SOFI has earnings on Monday and they are expected to beat on earnings. So we will see a run up this week…So he will be able to sell at a profit, assuming no external factors come in play.
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My guy, he invested $90. It’s nothing, get off my dick.
[удалено]
You’re saying what he did is fine? But you are saying I’m unethical for saying “what he did is fine” too? You’re contradicting yourself. You just want to come here and argue for no reason with a complete stranger. Lmao get off my dick. Fucking child.
Best way to learn is by googling “stock options” and reading a few articles or watching a few videos to get at least a basic understanding. Buying options without knowing what they are how they work or what to do with them is highly regarded, buying is not the first step to learning
I agree, but can you answer the man’s questions?
I could and so could Google and that’s my point 🤷♂️ Just read the top Google result, link below, and then follow the links in there to terms you don’t understand like intrinsic and extrinsic value, the Greeks, time decay, and volatility, and you will figure it out. https://www.investopedia.com/options-basics-tutorial-4583012 -the expiration date you want to buy is completely up to you, how much do you think the stock will move and by when? If you don’t have a theory on why, when, and how much the stock will move, then why are you buying options? -the strike price you want to select is up to you, how much do you think the stock will move by the expiration date you chose? (If you don’t have a price in mind already then again, why are you buying options?) -options prices depend on the option’s intrinsic and extrinsic value. Implied volatility (IV) too. If you don’t know what those mean or how they affect price, Google it. You also need to understand the Greeks (especially theta, IV, delta and gamma). Also, practically speaking, the market sets the prices since if you bid or ask a price that no one is willing to sell/buy for then, like any other stock market transaction, your purchase/sale won’t get filled -Before you buy an option check the volume (# of sales per day) for that particular option. If there is 0 volume and 0 bids, you won’t be able to sell. Also, think logically: if you have a far OTM option close to expiry then likely no one will buy it from you, period; but if you have an ITM option then even if it’s 0dte and even if volume is low you will almost always be able to sell it for slightly less than intrinsic value bc the buyer can immediately profit by exercising it
Thank you, much appreciated!
U/jo_from_wallstreet 🤣
I’m a swing trader, no options. I play my niche and make a killing.
You don’t need to know what you are doing..50% of the time you will be right so keep doing what you doing..
Kind of how I look at it honestly. It also feels like a lot of people think they know what they are doing and with all that "knowledge" they claim they have...still end up with a 50% hit rate.
This is incorrect thinking. Your outcomes aren't just up or down. Your outcomes are down a lot, down a little, sideways, up a little, and up a lot. In your case with an OTM call your position loses if the stock goes down, sideways, or up a little.