/biz/ - Business & Finance

Anonymous Mon Jun 22 12:06:36 2020 No.19862401 [View]
File: 45 KB, 660x436, ae8a4ee6-b1e7-4e34-9667-53abf1f4ca57-AP_Cuba_Gooding_Jr_Groping_Allegation_3.jpg [View same] [iqdb] [saucenao] [google]

>>19862331
Put
>>19861409
>I still don't understand how puts work
Puts are the reverse of calls.
You put puts when you think st0q price will drop. You will sell your option by or before the target date at or below (preferably) your target price, if it's lower than your fees + stork price, some retard will buy your stoinks at target and you'll make profit.

DAY 1
buy 1 $NGGR put at $30 (current stock price is $40)
Day 13
$NGGR CEO arrested for stealing a chicken nugget, stock drops %50, lower beyond your target

You now sell your put at $30 when, currently, the stock is at $20, making a $10 profit per share.

I'm right, right?

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