/biz/ - Business & Finance

>>50625883
hey buddy, relax eh..

is there a red bean bun requiring australian in here by any chance?

>>49709848
listen up here buddy don'tcha know, its aboot 13% actually. It's B.C that're thinkin' aboot there bud.

>>29621377
Bro.. you own 100 shares of X. You offer to sell someone the stock, at the strike price, at some point in the future. They pay you for the right to purchase your stock at the strike.
> you own DIS, you bought at $90
>You offer to sell your DIS, for $100, anytime between now and 4 months from now. But they have to pay you $5 to reserve the right to buy your DIS for this time period
>someone takes your offer, and pays you $5.
>you've made 5$ or, 5.5% on your $90
> Share price goes to $110, he takes your shares for $100
>you've locked in $10 from the sale of your stock + $5 premium. But you lose the upside of DIS going above $100.

>OR, over the next 4 months it drops to $85
> He doesn't buy your shares, because he can get them cheaper on the market.
>You keep his $5, and your shares.
>You write another contract, to collect more premium.