/biz/ - Business & Finance

>>56651172
you buy far dte options if you expect a big move in the future but are not sure if it will take 2 weeks or 2 months
if you bought spy puts in july during the big pump because you thought this is way too high and will probably sell off soon, you'd want to catch the first leg of the drop and then ride it so you buy options that are 3 months out
it is high risk and it is why a lot of people will tell you to instead sell options and get paid using theta, i believe that requires a bigger starting portfolio and is lower risk + lower reward in general but can really blow up in your face if it goes wrong which happens very rarerly for people that are good at it, no personal experience with it just talked to people that do it

>apple recovers by the time we open tomorrow
>run continues

>>54369912
So they don't do it for free.

>lyft
The crash is percolating