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18919206 No.18919206 [Reply] [Original]

I have never traded in options before so I don’t know if I’ve done my math right for this opportunity.

I found a stock that frequently and regularly as in weekly fluctuates 20$ and 3\4$.

My idea is to buy 11 put option 45$ while the stock is still in the 20s, and sell at 4.50 or less for a profit of no less than 19k after adding cost of the options to the stock price at 4.5$

Did I do my math right assuming the price drops as expected?

>> No.18919364
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18919364

Chart 4 reference

>> No.18919689

Why pay such a massive premium for an in the money option with a short expiration?
Let's say hypothetically this stock has a massive crash to 15 dollars in the next week. You just risked 25k for a 30% gain.
You might as well put less on the table and just buy the 20p and get a 4.5x on your money if it drops to 15 dollars. Then you don't risk so much capital and you have greater reward. Buying options this way is literally gambling so don't risk so much
Usually a high strike in the money put like yours is to hedge a long position, not as a yolo.
For what it's worth I wouldn't play this position in the first place. IV is pretty high and you have a short expiration, your option value is going up melt fast as fuck and you need a drastic move quick.

>> No.18919723
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18919723

>$ sign behind the number

>> No.18919912

I'm here if you've got any questions.

>> No.18920063

>>18919723
KEK

>> No.18920972

>>18919689
>>18919912
Thank u I’ll probably not YOlO on this and go with a lower option, I’m expecting it to drop to 3 like every other dip but you never know.

Any general advice for options? Suggestions? I’ve got 35k in oil to just forget about for a year or so but I’ve got 32k for short term movements

>> No.18921136

I'm curious about options, but I'd like to learn more about options strategies, particularly straddling.

I am safe to assume options calculators are bullshit, right? They don't seem correct

>> No.18921300

>>18919206
anon, you're going to get rekt

>> No.18921429

TRY OF TRIAS STAKING POOL
Are you wondering that Trias will have to get new tokens on the ground that will be minted for staking reward what If they could not get? It's good I tell you this that Trias has a Non-inflationary staking model which has helped Trias to repurchase tokens from the secondary market..

>> No.18921453

holy dear shit please tell me you didn't put this trade in!!............. dudeeeeeeeeeeeeeeeeeeeeeeee........................

>> No.18922076
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18922076

>>18920972
>YOlO
you only lose once?

>> No.18922219

These are my current positions I’m probably gonna make like 100 when everything calms back down easy peasy.

Might even throw my 50k margin into bitcoin if it hits another dip for some spending money

>> No.18922230
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18922230

>>18922219
My photo didn’t load ig

Ideas in what else I could capitalize in?

>> No.18922275

>>18919206
Don’t do it. If you lose your money, well u lose your money. If you win you’re going to be overly cocky with your gains thinking options trading is free money and lose all your money eventually

>> No.18922336

>>18922076
YOV ONLY IOVE ONCE

>> No.18922546
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18922546

>>18922275
EDIT

for some reason the SHIT ROBINHOOD chart was bugged or maybe I’m just retarded.

I was reading the stock rapidly fluctuate between 20 dollars down to 3 but it’s actually pretty steady decline and hasn’t been anywhere near 3 bucks at all this year and there’s no way in hell I’d have reached 3 like I planned on

>> No.18922563

>>18922336
>>18922076
IM AT MY WAGIE JOB I DIDNT NOTICE I DIDNT CAPITALIZE IT QUIT BULLYING MEEEEEE

FUUUUUUUUU

>> No.18922575

>>18922546
You are a fucking retard if you are using Robinhood charts to analyze

>> No.18922724

>>18922230
Anon, watch some Youtubes. You can even watch videos that are like "Option Trading for Robinhood". Don't jump into this shit. You will lose.

If I were in your shoes, I would sell calls on the shares you already own. This is called a 'covered call'. Do one at first. Don't be greedy.

You are already holding the stock, that makes it covered. Pick a number that is way OTM, or way more expensive than the current price of the stock. Sell it with the closest expiry date. You get the premium right away. After the expiry, if the stock is worth less than your stock price, the option you sold is worthless. If for some wacky reason the stock goes above your strike price, you're holding enough shares that you didn't option that you'll have lotsa money. Keep rinsing and repeating this.

It's probably the lowest risk way to learn how options work if you going to go ahead and try it anyway.