/biz/ - Business & Finance

Late night anime girl edition

>Brokers:
https://pastebin.com/F1yujtVq

>Stock market Words
https://pastebin.com/VtnpN5iJ

>Risk Management
https://pastebin.com/sqJUcbjp

>Educational Sites
https://www.investopedia.com/
https://www.khanacademy.org/economics-finance-domain
https://nhentai.net/tag/tomboy/

>Free Charts
http://www.tradingview.com
https://www.finscreener.com/

>Screeners
https://finviz.com/
https://www.tradingview.com/screener
https://etfdb.com/

>Pre-Market Data and Live Data
https://www.investing.com/indices/indices-futures
https://finance.yahoo.com/
https://www.msn.com/money

>Bio-pharma Catalyst Calendar
https://biopharmcatalyst.com

>Boomer Investing 101
https://www.bogleheads.org/wiki/Getting_started

>Dividend Reinvestment (DRIP) Calculator
https://www.dividendchannel.com/drip-returns-calculator/

>List of hedge fund holdings
https://fintel.io/

>Links for Bears
>bears are hibernating, no links

>Misc
https://squeezemetrics.com/monitor
https://market24hclock.com/
https://tradingeconomics.com

>Previous
>>19581749

>>18874151
Lets try this explanation:
A stock you own is valued at 100$. Now you write a call option on that. 105C 5/8
This option entitles the person who buys it to, at any point between now and this friday, the 8th of May, to purchase this stock for 105$. The buyer (B) gives you 3$ upfront for this.

>Now why should he do this?
If the stock goes to 140$ on thursday he could exercise it. He would get a 140$ stock for the price of 105$, earning 35$ in stock value for paying 105$ in cash.

>Now why should I do this?
Because he would pay you 105$ for the stock. You made a profit of 5$ AND the 3$ in premium/cash you got upfront. So 8$

You both walk away with a profit.

>Why not keep the stock and keep the 40$ in profit for myself instead of getting a meager 8$?
Because in most cases the stocks are crabbing. 103, 97, 101. Usually stocks dont move that much and the prices stay the same.
If the price stayed at 100$, which is the norm, you would get 3$ essentially for free.

>What if the stock goes to 106$? The guy paid 3$ for my option. So he would make a profit of just 1$.
Its better to walk away with a loss of 2$ then a loss of 3$.
For you the situation does not change btw.
Your stock will get sold for 105$ and you got your premium for 3$.
Once you wrote that option the vlaue of the stock beyond 105$ is of no concern to you.

>What if the stock drops?
Then your stock loses value. But you got 3$. So the new price of the stock is essentially 97$. If you sold for exactly 97$ then you would not have made any loss.

You repeat this process week after week after week.
Its the most baby tier form of option strategy but it works.