- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: So when do we buy Boeing?
Posted on 3/16/19 at 9:40 pm to Jag_Warrior
Posted on 3/16/19 at 9:40 pm to Jag_Warrior
I really wish I understood what you are talking about.
Posted on 3/18/19 at 8:39 pm to TulaneUVA
quote:
I really wish I understood what you are talking about.
Just selling a put. If you're content buying a stock at a certain price ($325, for example) by a certain date, selling a put allows you to collect a premium ($640/contract in that example) while you wait for the option's expiration date (June 21, 2019). If it doesn't hit below the strike price, you keep the full option premium. If it does ($324.99 or lower) and you get assigned, then you could be forced to buy the stock at that price ($325), even though it might be trading well below that price ($300 or $250, etc.). You can also buy the option contract back (at a gain or a loss) if you want to exit the trade.
IV is implied volatility (the higher the IV, the higher the premium generally is). Delta is the amount an option price is expected to move based on a $1 change in the underlying stock, and it's frequently used synonymously with probability in the options world. So using that measure, a 16 delta put would have a *roughly* 16% probability of finishing in the money (a loser) vs. an 84% probability of finishing out of the money (a winner) when I wrote that post. The actual in the money calculation was closer to 20% as best I recall. Delta doesn't always match up exactly to the probabilities - but it's close enough for a quick assessment.
Several guys that used to post here (maybe still lurk) were also active in the options market. I just tossed that out for anyone else who might be considering BA at a certain price level - like I said, I'm not recommending that anyone do that play. I generally stick with weekly options. I'm not comfortable going out that far in something like this that has so much potential event risk.
Popular
Back to top
![logo](https://images.tigerdroppings.com/images/layout/TDIcon.jpg)