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Started By
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learning about options
Posted on 5/10/18 at 10:05 am
Posted on 5/10/18 at 10:05 am
So it just occurred to me that in a market of high volatility that if I purchase the underlying stock and a put option then I'm almost guaranteed to make money. If the market is indeed volatile.
Or am I missing something.
Or am I missing something.
Posted on 5/10/18 at 10:12 am to CorkRockingham
quote:
guaranteed to make money
quote:
options
quote:
am I missing something
Yes
Posted on 5/10/18 at 10:17 am to CorkRockingham
quote:
So it just occurred to me that in a market of high volatility that if I purchase the underlying stock and a put option then I'm almost guaranteed to make money. If the market is indeed volatile. Or am I missing something
Not missing a thing. Let us know how it goes!
Posted on 5/10/18 at 10:18 am to Mingo Was His NameO
now that I'm thinking about it and reading, I'm guessing if everyone knows the market is volatile then that will be built into the price.
Posted on 5/10/18 at 10:18 am to CorkRockingham
A volatile market doesn’t mean each stock will have wide variation.
This post was edited on 5/10/18 at 10:19 am
Posted on 5/10/18 at 10:19 am to TheWalrus
sorry bad terminology, if the market knows that that stock is highly volatile then it will be built into the price.
Posted on 5/10/18 at 10:20 am to CorkRockingham
quote:
Or am I missing something.
Always ask yourself why you think you've found something Goldman Sachs doesn't already know about, has tried, and subsequently discarded.
Posted on 5/10/18 at 10:40 am to CorkRockingham
Based on this thread and your 401k thread I'm thinking you might want to slow down a little before the big boys take all your money.
Posted on 5/10/18 at 10:42 am to CorkRockingham
What a genius plan with no downside. You should execute it immediately!
Posted on 5/10/18 at 11:54 am to CorkRockingham
quote:
So it just occurred to me that in a market of high volatility that if I purchase the underlying stock and a put option then I'm almost guaranteed to make money. If the market is indeed volatile.
Thats called a protective put, it will cap your downside but thats about it.
Now if you want to merely sell options and sell both sides then you can make money as you're basically selling insurance. As long as you manage your risk you can make a decent return if you have the capital....and the time.
quote:
Or am I missing something.
Apparently incredibly basic knowledge of investing in equities and risk management
Volatility is pretty much the sole driver behind option pricing
Posted on 5/10/18 at 5:46 pm to barry
quote:
Now if you want to merely sell options and sell both sides then you can make money as you're basically selling insurance. As long as you manage your risk you can make a decent return if you have the capital....and the time.
What he said.
Posted on 5/10/18 at 6:07 pm to CorkRockingham
quote:
almost guaranteed to make money.
quote:
Or am I missing something.
Posted on 5/10/18 at 7:50 pm to Fat Bastard
I am just getting into investing and there is one thing I have learned so far... everything looks easy when you are Monday morning quarterbacking.
Not so when doing it in real time.
Not so when doing it in real time.
Posted on 5/17/18 at 9:46 am to CorkRockingham
After slowly gaining a little knowledge about options I finally decided to play a bit on Robinhood, which makes it fairly easy.
Probably just calls for now on stocks that I consider hot. I'm not comfortable looking within 3 weeks, but it seems like a way to make some extra money. Enjoying it so far.
Probably just calls for now on stocks that I consider hot. I'm not comfortable looking within 3 weeks, but it seems like a way to make some extra money. Enjoying it so far.
Posted on 5/17/18 at 12:33 pm to bayoubengals88
I made a paper trade on GE, If gets above 16$ before middle of June I will be correct.
How do you find your hot stocks? like filter and find and analyze.
How do you find your hot stocks? like filter and find and analyze.
Posted on 5/17/18 at 1:34 pm to CorkRockingham
quote:nothing sufficient enough for what you're looking for. I just to find momentum. I used to following dozens of stocks fairly closely, but I haven't had the desire to keep up lately.
How do you find your hot stocks? like filter and find and analyze.
I bought CZR 13.50 calls this morning. Should have sold when I was up 38% but I was trying to be patient.
Good luck with GE. That's probably another good call option if it bottomed out.
Posted on 5/18/18 at 5:18 pm to CorkRockingham
Start with Investopedia, then progress to paper trading from there.
Posted on 5/18/18 at 5:34 pm to Jag_Warrior
Dec $15 short puts are intriguing..
This post was edited on 5/18/18 at 5:36 pm
Posted on 5/18/18 at 7:48 pm to CorkRockingham
You should post this on r/wallstreetbets
This post was edited on 5/18/18 at 7:48 pm
Posted on 5/18/18 at 8:14 pm to Jag_Warrior
Nothing will teach you more about options than being wrong.
And you will. The skill with options is how to manage risk, and even then I bet a small fraction win in the long run.
And you will. The skill with options is how to manage risk, and even then I bet a small fraction win in the long run.
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