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1
Posted on 10/13/21 at 11:39 am to Capt ST
quote:
What's the exit plan?
Orbital insertion.
Posted on 10/13/21 at 11:46 am to igoringa
I upvoted 
New all time high
New all time high
This post was edited on 10/13/21 at 11:47 am
Posted on 10/13/21 at 11:55 am to Grassy1
quote:
If someone is bored, feel free to explain the contracts you speak of.
For us third graders.
You can pay for the right to buy or sell 100 shares of a stock at some point in the future at a specific price. Say, January 2022 at a price of $7.50. And the price of that contract is $2.00. So you have to pay that on all 100 shares covered by the contract ($200). Once you have that contract ("option"), it becomes an asset you own which will rise and fall in value as the underlying stock price moves. You can sell it whenever. It also loses value over time as you get closer to the expiration, and you never get that $200 back. And if you hold until expiration, you would need the stock price to be above $9.50 to make any money, because you have to account for the $2 premium you paid above the strike price of $7.50.
Trading options is very tough because of the set expiration date...vs just trading a stock where you can theoretically hold it forever.
This post was edited on 10/13/21 at 11:57 am
Posted on 10/13/21 at 12:33 pm to BallsEleven
2021-10-13 16:28:00 GMT DJ Standard Lithium Ltd Price Target Raised to C$14.00/Share From C$9.25 by Canaccord Genuity
Posted on 10/13/21 at 12:34 pm to L LiSTR
that damn canaccord
Posted on 10/13/21 at 12:38 pm to Chucktown_Badger
This is a great overview of options trading.
I usually just give the TL:DR of “I’m betting that the share price will be above a certain price at a certain date”. Someone is selling me that contract hoping that it won’t be above that price at that time.
Like Chitown said, each contract is worth 100 shares, so if I ‘bet’ that SLI is going to be over $12.50 in April 2022, I paid a premium to someone who owns those shares (I think it was $180 per contract) for the right (but not the obligation) to buy those 100 shares at $12.50, even if the actual share price is $25 at that time. But if April comes around, and SLI is still trading at $9, I can just let the contract expire worthless (so i only lose my $180 that I initially put up), but I don’t have the shares.
I usually just give the TL:DR of “I’m betting that the share price will be above a certain price at a certain date”. Someone is selling me that contract hoping that it won’t be above that price at that time.
Like Chitown said, each contract is worth 100 shares, so if I ‘bet’ that SLI is going to be over $12.50 in April 2022, I paid a premium to someone who owns those shares (I think it was $180 per contract) for the right (but not the obligation) to buy those 100 shares at $12.50, even if the actual share price is $25 at that time. But if April comes around, and SLI is still trading at $9, I can just let the contract expire worthless (so i only lose my $180 that I initially put up), but I don’t have the shares.
Posted on 10/13/21 at 12:42 pm to L LiSTR
I think that upgrade is gonna make this break through the resistance
Posted on 10/13/21 at 12:44 pm to Box Geauxrilla
quote:It is so funny, I can read this information, process it with about 76% accuracy..yet completely forget how it works by afternoon. I know how my wife feels when I talk sports. She wants to learn, just cant.
This is a great overview of options trading.
I usually just give the TL:DR of “I’m betting that the share price will be above a certain price at a certain date”. Someone is selling me that contract hoping that it won’t be above that price at that time.
Like Chitown said, each contract is worth 100 shares, so if I ‘bet’ that SLI is going to be over $12.50 in April 2022, I paid a premium to someone who owns those shares (I think it was $180 per contract) for the right (but not the obligation) to buy those 100 shares at $12.50, even if the actual share price is $25 at that time. But if April comes around, and SLI is still trading at $9, I can just let the contract expire worthless (so i only lose my $180 that I initially put up), but I don’t have the shares.
Posted on 10/13/21 at 12:47 pm to tigerfoot
Once you do it once or twice it gets much easier to understand. I feel like SLi has been a perfect first options trade because of the risk/reward ratio and relative stability of movement
Posted on 10/13/21 at 12:58 pm to jimbeam
Thanks for the confidence, I feel like a monkey just pounding on the keyboard when I start thinking about giving it a go.
Posted on 10/13/21 at 1:00 pm to Chucktown_Badger
quote:
Chitown_Badger
Thank you very much. I'm sure I'll come back with questions.
May do one just to learn.
Posted on 10/13/21 at 1:02 pm to tigerfoot
Haha.
The problem with options is that the concept is easy to understand. But the way they trade is far less intuitive and very difficult to translate. Steep learning curve, but busting through the beginning of it ain’t easy.
The problem with options is that the concept is easy to understand. But the way they trade is far less intuitive and very difficult to translate. Steep learning curve, but busting through the beginning of it ain’t easy.
Posted on 10/13/21 at 1:02 pm to tigerfoot
You only have to “risk” a hundred or two hundred bucks at this point too. Like Jan22 12.50 calls are ~1.40. So you’re only risking $140, betting that by January SLi will be at least 12.50+1.40= 13.90.
Posted on 10/13/21 at 1:03 pm to jimbeam
I talked to mintak and he said this was gonna be a 20% day but too many shares were borrowed out
Posted on 10/13/21 at 1:05 pm to el Gaucho
That’s what I was starting to wonder. Some of those short sellers have to be feeling a squeeze right about now.
Posted on 10/13/21 at 1:06 pm to jimbeam
quote:
You only have to “risk” a hundred or two hundred bucks at this point too. Like Jan22 12.50 calls are ~1.40. So you’re only risking $140, betting that by January SLi will be at least 12.50+1.40= 13.90.
So breaking it down, are you willing to bet $140 that SLI will be at $13.90 per share on Jan 22, 2022?
Also keep in mind that if it rockets before Jan 22nd that option can be sold for a profit because obviously other people are then willing to pay more for a lower strike price.
I have 3 $7.50 January calls and likely won't sell them because I'll actually want to exercise them... meaning I will get 300 more shares at $7.50 each no matter what price it's at at that time (because i think it'll go higher than whatever price it will be in January)
This post was edited on 10/13/21 at 1:10 pm
Posted on 10/13/21 at 1:11 pm to tigerfoot
quote:
It is so funny, I can read this information, process it with about 76% accuracy..yet completely forget how it works by afternoon. I know how my wife feels when I talk sports. She wants to learn, just cant.
Paper trading is a good way to become intuitively comfortable with options trading. Mistakes are painless there.
Anything other than Iron Hands on SLI makes me nervous.
Posted on 10/13/21 at 1:12 pm to Chucktown_Badger
$9 is the New Floor for this NKOTB!!!
Posted on 10/13/21 at 1:19 pm to BigDropper
Finally in the green with this after getting in at the last 8$ peak
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