/biz/ - Business & Finance

>>14110633

>>14018613

Thank (((You)))

>>14018634

>tfw Huwai on blast, Google on the DOJ dockets, Apple getting Anti-JUSTed.

wtf I love JP Morgan now!

>>13920452

Correct.

You write (Sell-to-Open) Calls to another investor in the hopes that they do not execute their Option Contract and assign it to your account.

Example using easy numbers:

>ACME is changing hands at $20 a share

You believe it will snibble along sideways for the next month.

You Sell-to-Open next Friday's Call Option at the $25 strike price.

Your client who is Buying-to-Open their speculative position thinks they know something, and wants to be able to call away your shares at $25 all day. The buyer is hoping for a rally to $30 a share so they can call away your shares at $25 and sell them immediately in the market at $30 a share for an instant profit.

ACME trades for the next two weeks and ends up at $19.97 per share.

Call Option Contract expires worthless.

You profit off the premium collected with no further legal obligations to deliver to anyone in the market.

>>13920431

Thanks, fren! I like it a lot too. One of my favorites.

>>13814864

Thank (You), Mr. Lannett!

Hope you have a fabulous namefag weekend, fagging it up around your faggoty locale.

>>13737799

>tfw accidentallied into making it

>>13224706

</smiles in proper white gentleman>