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/biz/ - Business & Finance


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13313123 No.13313123 [Reply] [Original]

>buying 100 dollars worth of DISNEY call yesterday could have netted you 22k today
WTF?

>> No.13313160

>>13313123
I sold 80 shares on Monday fml

>> No.13313171

>>13313160
at least they werent calls then u really would have killed youre self

>> No.13313264

>>13313123
22k. kek. i make 100k a trade.

>> No.13313281

>>13313264
with what 200k? i said you could have made 22k from 100 dollars

>> No.13313301

>>13313123
disney is a scam. you think that mouse is real? thats a guy wearing a suit

>> No.13313318

>>13313301
i dont fucking care, i only care about making money and i missed this once in a lifetime opportunity

>> No.13313348

>>13313318
And you will miss the next one because youre lazy.

>> No.13313356

>>13313348
tell me how to be unlazy senpai

>> No.13313361

>>13313123
how?

>> No.13313366

>>13313361
disney calls u illiterate autist

>> No.13313372

>>13313366
I don't understand options, never heard of them before googling disney call

>> No.13313386

>>13313372
options trading. i wouldnt get into it unless u know the basics. i dont really know either but i know enough to put in orders and sell

>> No.13313654

>>13313123

Explain for a noob please anon. How?

>> No.13313678

>>13313654
literally look at the post above you

>> No.13313708

>>13313654
>>13313372
You guys should just search for options on youtube or investopedia if you want to learn the basics.

Basically you are paying for the right to buy (call option) or sell (put option) a stock at a certain price.

Hypothetical example:
You pay $100 for the right/option to buy 100 shares of stock X at $100/share after 1 day (expiration date) no matter what the market price is.
> If the stock price is less than $100 after 1 day then you shouldn't use the option and you lose the $100 you paid for the option
> If the share price is higher than $100 you should use/exercise the option and buy 100 shares for $100 each
> If. for example, the share price is $200 at the expiration date you made $200*100-$100*100-$100=$9900 in profit.

>> No.13313711

>>13313708
Sorry about the reddit spacing

>> No.13313713

>>13313708
teaching stock investing on 4chan biz...seriously how new are you?
if its not on binance these guys dont want to hear anything about it

>> No.13313765

>>13313713
Not new, but maybe I'm wasting my time. Almost every time I try to start a discussion about valuation or financial theory it gets ignored. Maybe you're right kek.

>> No.13313777

>>13313708
That seems scammy and some Jew shit

>> No.13313779

>>13313765
You didn't waste your time anon. Your little write up was enough to get me interested enough to read/watch more about it. Thanks bro.

>> No.13313780

>>13313123
How much where the calls and strike price?

>> No.13313786

>>13313765
>>13313713
did u motherfuckers get on those disney calls? should i buy calls on monday? everyone is calling for pullback but as always do the opposite

>> No.13313789

>>13313780
i believe the price was .01 for 4/18 strike at 130. so yea, 200x gain...

>> No.13313806

>>13313123
>If only I had a TIME MACHINE!
Might as well do the lottery at that point. Go make the great call for next week instead of lamenting about the one this week.

>> No.13313816

options are dumber and more unsafe than crypto. imagine bitcoin but on same arbitrary date it automatically goes to 0 if you guessed its value wrong. that is what options are. options are literally for idiots.

>> No.13313818

>>13313806
>investor day HELLO
the signs were there i was just too lazy to look. i would have absolutely spent a little play money in anticipation for the event alone. there will never be an opportunity that hits you in the face like this one did

>> No.13313864

>>13313818
>there will never be another opportunity to make money
jesus anon, what are you? giving up after a day?

>> No.13313867

>>13313816
thats why you pick an expiration date you're comfortable with...
disneys options made more percentage gain in one day than most crypto did

>> No.13313875

>>13313864
its hard to keep track of both crypto and stocks. i got to choose one or the other, i just hate missing stuff like this. i know there will be more opportunity but not quite like disney

>> No.13313880

>>13313777
Depends on what you use it for. You can use it to protect against risk, e.g.
> a shipping company that wants to lock in a "low" oil price can buy a call option on crude oil
> An oil company can buy a put option (the right to sell at $X) on crude oil to mitigate the risk of oil prices crashing
Options and futures can be used to reduce risk/uncertainty which is great for society.

>> No.13313891 [DELETED] 

>>13313786
Nah. I have $60k in Disney stock though. Bought in 6 months ago at $100 expecting a rally leading up to the launch of Disney+. The stock is still a great buy at the current price imo.

>> No.13313907

>>13313786
Nah. I have $60k in Disney stock though. Bought in a couple of months ago at $105 expecting a rally leading up to the launch of Disney+. The stock is still a great long term buy at the current price imo.

>> No.13313913

>>13313816

And that’s why I sell options to dumbasses all day long.

Thanks for the premium! Good luck trying to hot potato your withering contracts to the next sucker.

>> No.13313924

>>13313123
Just go back in time bro.

>> No.13313931
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13313931

>>13313924
if only

>> No.13313948
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13313948

>>13313777
Checked and kekked Based and honkpilled
>>13313880

Still seems like a whole bunch of Jew shit

>> No.13313980

>>13313779
Np. You should read about the put-call parity. Traders use options to speculate on the volatility of assets. For example, if the market underestimates the expected volatility of an asset you can profit by buying call options. Why? Because the downside risk is capped (what you paid for the call option), but the upside potential is unlimited (as a function of the share price). In other words, the high the expected volatility is, the more a call option is worth.

>> No.13314005

>>13313264
only 100k a trade? pfft. peasants shouldn't talk.

>> No.13314017

>>13313948
I guess it depends on what you mean by jew shit. Imagine you were running a small business that is highly dependant on the future price of a commodity, e.g. a wheat farm. You might want to lock in the price of wheat so you and your family doesn't get JUSTed if wheat prices crash. Options basically serve as insurance policies for businesses. Without options/futures many businesses would have to be a lot more conservative and it would be harder for them to plan for the futrure. This would lead to lower GDP, fewer jobs, lower wages etc.

>> No.13314025

>>13314017
Sounds like some Jew shit

>> No.13314069

>>13314025
lol ok.. But jew shit in a good way then. Many things in finance can be seen as options. Shares in a company can be seen as call options on the companies cashflows/assets. Shares give shareholders the right/option to buy a company's future cash flows/assets by paying off creditors (the price/debt they have to pay is the exercise price of the "option"). If they can't/won't pay off the debt/ not use the "option", creditors will seize control of the company's assets.

Many financial decisions in life can be seen as "options" and having an understanding of options theory can be very useful in these situations.

>> No.13314078

>>13314069
Sounds like some Jew shit to solve the symptoms of other Jew shit

>> No.13314086

>>13313318
How could you possibly have forseen this?

>> No.13314100
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13314100

>>13313301
big if true

>> No.13314113

>>13314078
Everything you do to avoid/mitigate risk in life is basically an option. You might think recessions are "jew shit", but that's not to reason not to learn about how you can protect yourself against it.

>> No.13314133
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13314133

>>13314113
Don't get me wrong I appreciate all the information

But it was honked from the start fren. Solving Jews shit with more Jew shit to prevent Jew shit to buy jew shit sounds like some serious Jew shit

>> No.13314144

>>13314113
Options can be boiled down to
> If X happens I want to be able to do/avoid Y
I'm sure you can come up with a ton of things you do in your own life that fit that definition. Options theory can help you make better decisions. They don't even have to be financial decisions.

>> No.13314151
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13314151

>>13313301
Impossible. conspiracy nut jobs like you need to be barred from internet access.

>> No.13314258

>>13314069
Thanks for your efforts bro, I'm learning something here!

>> No.13314278

Yeah its not 100$ into 20k, its more like you gambled kobe was going to shut out and land over 10 shots in the third quarter

>> No.13314361
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13314361

>>13314258
Np. Lmk if any you have any questions.

>> No.13314439

>>13313708
How do I overcome my low IQ and not fail at this?

>> No.13314486
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13314486

ONCE DISNEY HAS THE HIGHEST MARKET CAP IN THE WORLD THE DAY OF THE CIRCUS WILL SOON FOLLOW HONK HONK ONE DISNEY WORLD GOVERNMENT HONK HONK

>> No.13314511
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13314511

ALL-WEATHER CLOWN WORLD PORTFOLIO: 100% DIS US EQUITY

>> No.13314553

>>13313708
hrm, does there have to be a put to match the call for the trx to settle or the position close?

im a brainlet obviously

>> No.13314562

>>13314133
>But it was honked from the start.
So glad I realized this and follow this posters advice >>>13313713 and shop on Binance.

>> No.13314687

>>13314553
No.
> If you want to buy (sell) a call option someone else has sell (buy) the call option.
> if you want to buy (sell) a put option someone else has to sell (buy) the put option.
The pricing of puts and calls are related to each other though (put-call parity).
If I sell you a call option, I'm selling you the right to buy an asset at the price E from me. The price of the option is C. At the expiration date the market price of the asset is P and
My profit is: C-P+E
Your profit is: -C+P-E
Notice how your profit and my profit add up to 0. Option trading is a zero sum game.
>>13314439
Maybe I'm bad at explaining. The basics are not all that complicated. I'm sure you can understand it if you study it a bit :)

>> No.13314715

>>13314687
Oh, and those profits are if E<P. If E>P you obviously won't use the option (it would be stupid to buy the asset from me at a higher price than the market price). In that case
My profit is: C
Youre profit is: -C

>> No.13314738
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13314738

>>13314687
I follow you are explaining well

But that sounds like some top tier Jew shit

>> No.13314790

>>13314687
If it's not clear, C is what you pay up front for the right/option to buy the asset.

As you can see here >>13314715 My potential gain and your potential loss are capped at C. The most you can lose is what you paid me for the contract (C).

As you can see here >>13314687 my potential loss and your potential gain are (in theory) unlimited.

>> No.13314807
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13314807

>>13314738
Sometimes the only way to beat the clown world is to honk back at it.

>> No.13314920

>>13313980
not him but thanks bra will read on thst as well. we need ppl like you here

>> No.13314951

>>13313708
>>13313713
Dont listen to him that was pretty good

>> No.13315206

>>13313789
Nah you’re a tard

>> No.13315228

This is the top cringe thread I ever read. Do not learn about options from 4chan. Avoid

>> No.13315630

>>13315228
Ehm idk if you're referring to my adivce, but everything I said is correct.

>> No.13315641

>>13313123

Check out!

https://bitcointalk.org/index.php?topic=2827989.680

Stake while you trade
https://youtu.be/OIamCXZ6CZI

>> No.13315650

>>13313123
https://youtu.be/HmStbc0tNcA

>> No.13315796

The level of total and absolute illiteracy here about traditional markets never ceases to amaze me.

"what's an option?"

There are people here who literally ONLY know about the crypto market, and that's it? Just shoved all of their NEET money in without taking the time to learn anything about the wider world of finance?

JFC, no wonder you all got exploded during the crash.

Imagine the stench.

>> No.13315827

>>13313708
It seems crazy that you only need to put $100 upfront to buy 100 shares, your odds are insanely good, why isn't everybody doing this? hell why am I not

>> No.13315859

>>13313980
Same for a put option

>> No.13315883

>>13315827
it's a bit of a secret, but retail investors who start trading derivatives almost always become millionaires.

>> No.13315937

>>13315827
The deals aren’t actually that good

>> No.13316524

>>13315796
I use a robo advisor for my normie investments.

And no, I never heard of options.

>> No.13317103

>>13314078
>hedging against locusts, diseases and mother nature
>jew shit

>> No.13317562

>>13313708

Oh ok. So you pay $100 for the call option, but you'd still have to pay yesterday's agreed upon price per share and sell at today's price to net your gain

So it's not a 2200x profit then.

That's what I thought OP meant

>> No.13317624

>>13317103
But the fact that the bank will taken you assests.

You are using Jew shit to prevent Jew shit

>> No.13317713

>>13313708
Also worth noting that it's basically always more profitable and a quicker turn around to just sell your in the money option to close rather than execute it.

>> No.13317830

>>13317562
No, that’s not quite it.
You can literally sell the option and not the underlying asset.

For example, April 18 at $130 strike was $0.01 before the announcement. Now it is worth $2.19. You do not need to exercise the option. You can simply sell the option and rights to exercise. This would be a 200X gain. If you invested $100, that would be 10,000 options. At $2.19, that would mean $21900.

But in all likelihood, your options would have expired worthless, meaning that the value would have remained at $0.01 or gone down to $0 or the price on April 18 was below $130.

>> No.13317862
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13317862

WTF MY THREAD IS STILL UP? STOP REMINDING ME ABOUT DISNEY AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA

>> No.13317893

>>13317862
Attention I have an announcement

*Tink*
*Tink*
*Tink*

>> No.13318000

>>13314133
Based

>> No.13318167
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13318167

>>13317862
it's a small world on biz

>> No.13318569

>>13313123
Second best thin is buying 100 of puts now

>> No.13318584

>>13318569
get ready to be owned