/biz/ - Business & Finance

>>22051957
TSLA 1k eoy.

>>20523564
A very funny meme
Where can I like?
>>20523572
No car can beat the Ford, man.
Except Chrysler or GM. Whens the next Pontiac coming out?

>>18112375
Sorry, I made it even more confusing for you.
Writing an option means creating an option. Every option you buy was created by some entity and then sold to the market.
Selling an option means selling an option you bought from someone else. (It can also mean writing and selling here sometimes, but lets leave that on the side)

Imagine you bought a BA call for 200$ three days ago. The stock rises to new heights and all is fine and dandy. You sell it for a plus of 700%.

Now think of the person on the other end of that trade. The person who wrote that call and offered it to the market. Some person/institution had to write and sell you that call. And they are the ones on the hook for when it gets exercised.

Now imagine BA rising another 300% and the call going up 2000%. The person who wrote that call now is in deep shit.

>>18112424
>When he said sell a call, what he really meant was WRITE a call.
Correct. In my attempt to make it easier I caused unnecessary confusion.

>>18112509
Writing an option means creating an option and selling it to the market.
Selling a call means you bought an option and sell it.

You can never accidentally write an option, no worries.