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/biz/ - Business & Finance

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19099320 No.19099320 [Reply] [Original]

I accidental bought this call and I don't even know what calls are. Can someone explain to me how they work and how one gets profit from them? Do they automatically expire or do i have to sell them back like any other stock

>> No.19099340

>>19099320
>ANONS PLEASE FUCKING HELP
$16.00

>> No.19099370

Why don't you just be a boomer somewhere else

>> No.19099374

>>19099340
Dude still Idk what they are and what to do with them

Do I sell them back or something. I haven't learned much about options trading and I just bought them accidentaly

>> No.19099397

>>19099320
Call let you buy the stock at a set price on the date of expiry. If the price of that asset has gone up you've made money, otherwise you can choose not to buy and you've only lost what you paid to buy the calls initially.

>> No.19099405
File: 3.70 MB, 480x360, 1583720221086.gif [View same] [iqdb] [saucenao] [google]
19099405

>>19099370
Dude I will but just please fucking help me.

Do they automatically get sold on 5/22 or something or do I have to sell them back by then?

>> No.19099410

>>19099374
>I just bought them accidentaly
Enjoy your new life

>> No.19099418

I'll help you anon, give me a few minutes to look into it.

>> No.19099432

>>19099397
Perfect this makes complete sense. So I check back on the robinhood app on 5/22 at what time? Before the market opens? And I'll press it and see that choice your talking about

>>19099418
thanks mate

>> No.19099437

>>19099405
you need to buy puts (opposite of calls) to cancel them out

>> No.19099447

>>19099405
Can someone answer this

>> No.19099469

>>19099447
>>19099405
They'll automatically get exercised an hour before expiration for whatever they are worth.

>> No.19099500

>>19099320

OP you’re overexposed here... if you don’t sell with a net gain you could be owing whoever you purchased this call from a lot of money

>> No.19099508

Congrats, if the stock goes down you could potentially owe robinhood an endless amount of money (hundreds of thousands of dollars). You had to know this signing up for options on the app you retard, they warn you. good luck faggot

>> No.19099518

>>19099469
And the profit/loss is automatically realized to your account?

>> No.19099526

just buy a put opposing to balance it out

you will be even money

>> No.19099568

>>19099508
What the fuck????
>>19099500

How do I cancel it please tell me. OI'm fucking scared as hell please help

>> No.19099590
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19099590

>>19099500
>>19099526

Can I just do this??

>> No.19099596

>>19099320
lmfao, good thing your calls are worthless, otherwise you'd be fucked

>> No.19099612

>>19099405
It's an option to sell something by that date at listed price, did you fucking graduate high-school?

>> No.19099615

>>19099596
Wait did you all lie to me??

Robinhood just said this
"What are the risks?

Once you buy an option, its value goes up and down with the value of the underlying stock. If the stock’s value doesn’t go up enough, your call may expire worthless. However, you’ll never lose more than the price you paid to buy the call."


They said I can't lose more than I paid for? Why are you all saying I could owe a lot of money

>> No.19099633

>>19099508
"What are the risks?

Once you buy an option, its value goes up and down with the value of the underlying stock. If the stock’s value doesn’t go up enough, your call may expire worthless. However, you’ll never lose more than the price you paid to buy the call."

I just read their FAQ and it says you can't lose money more than I paid for (16$) on an option

>> No.19099639

Alright since it's pretty complicated to go into every detail about how options work, I'll break it down simple and give you my suggestion.

A call is essentially a bet that stonk will go up, (put is stonk go down) thing is about options is that every day you hold it it'll begin to lose it's value (theta aka time decay) - so say the stock hit 7 bucks tomorrow (it won't) you'd make a 375% profit.

now say you wait another day and it stays at 7 bucks, now it's 350%, etc. weekends count so keep that in mind.

You bought a option that expires next week so unless it goes up pretty quickly it'll start to lose value a lot more rapidly if something big doesn't happen (volatility).

My suggestion to you, based on fits performance would be to go to where it says you can sell the option, click the little three dots, and click on "Stop Limit Order" - this'll let you automatically sell off the contracts if they go below a certain point. Set the stop price to something like $0.03 and limit to $0.02 just so you don't lose everything.

Monitor what happens during the day, most I'd say you might make is maybe twenty bucks if another spike happens like today but likely it'll go back down to the 6.45~48 area.

I wouldn't recommend holding it through the weekend though, fit is a really stagnant stock right now and is basically just being pumped and dumped constantly.

Also ignore the dorks, the most you can lose is everything.. so sixteen bucks. I'll type a lil more since I can tell your nervous.

>> No.19099653

>>19099615
No you can and WILL potentially lose a lot of money. You're looking at anywhere between $100,000-$500,000 of debt to pay off that option. Better hope it hits $7 by 5/22 retard.

>> No.19099670

>>19099653
Anon please please please help me out. What do I do right? Please mate I'm begging you

I'm sorry I did this but I really want to get out

>> No.19099682

>>19099653

This is correct. Other anons in this thread really need to learn basic finance skills

>> No.19099684

>>19099518
Yep. I'd highly suggest to not wait until expiry unless your like 80% down or something - theta will eat up all your money.

>> No.19099689

>>19099653
I don't have that money

I need to spend it on my children and their food and school supplies. Please help me get rid of this. I heard stories of this happening please

>>19099682
Did robinhood lie then in what they wrote above?? Please help me get out of this. >>19099684
What do I do to get rid of it? People are telling me I will have six figures in debt

>> No.19099713

>>19099689
The most you can lose is everything, so sixteen dollars. Read my above post.

>> No.19099715

>>19099689

You believe Robinhood, the company that literally sells your buy/sell data to the bigger fish so they have an edge? Of course they lied... the whole reason they made that app is to create an army of debt slaves

>> No.19099717

>>19099639
Oh my goodness thank you so much

I am so happy every day that god has created good people like you. I saw a youtube video once of some kid who lost thousands in debt because of tesla. Thank you so much

>> No.19099739

>>19099717
......
are we going to tell him?

>> No.19099753

>>19099670
the guys from robin hood are going to be on their way to give you some cement shoes anon.

>> No.19099756

>>19099717
>When you short a stock, you expose yourself to a potentially large financial risk. In some cases, when investors and traders see that a stock has a large short interest, meaning a big percentage of its available shares have been shorted by speculators, they attempt to drive up the stock price. This can force the speculators with short positions to "cover," or buy back the shares before the price goes too high, and this exerts a certain amount of control over the stock price before a large amount of speculation causes huge losses.

If you want to sell stock short, do not assume you'll always be able to repurchase it whenever you want, at a price you want. The market for a given stock has to be there. If no one is selling the stock, or there are many buyers, including panic buyers, caused by other short sellers attempting to close out their positions as they lose more and more money, you may be in a position to incur serious losses. You could also wake up to an announcement that a company's getting acquired for a 40% premium over its current stock price including a special $10 per share dividend, for example, which means short sellers are instantly impacted and may have serious losses.

a call is basically just shorting but with options

>> No.19099760

>>19099689
You’re not from around here are you?
Why don’t you skitter back off to Facebook,where you belong.

>> No.19099762

IRS is coming for you, OP. You can't trade options without the minimum margin req

>> No.19099768

>>19099739
tell me what? you all are obviously lying >>19099760
I am sorry its just I dont want to look like a fool in front of my boss asking in linkedin

>> No.19099776

>>19099762
That's not even the funniest part, he literally is going to lose so much, I really hope this is a shit post or he inspected element on the page. No way someone fucked up this bad.

>> No.19099807

>>19099437
the only way he is going to be able to fix this gigantic fucking mess

>> No.19099814

>>19099762

Holy shit I forgot about this. How did OP even get around the min req??? He is so fucked lmao

>> No.19099825

>>19099639
One last question - so you said monitor what happens. So I sell it at market price the second it hits an attractive price?

>> No.19099832

>>19099762
yikes lmao, forgot about that. $100k-500k tax bill or federal pound me in the ass prison

>> No.19099849

>>19099768
Ok now this is larp as fuck. You blew it with the kids and linkenden thing.

To everyone that gave genuine advise: Get the fuck out of here. This isn't retarddit.

>> No.19099855

>>19099768
You’re fucking retarded and if your wife hasn’t already left you, she will soon
Gambling your life savings like that is a terrible thing to do.

>> No.19099857

>>19099717
Play around with this tool, it gives you a basic idea of how much you can earn/lose on an options play. https://www.optionsprofitcalculator.com/

Like I said they are just messing with you, the only way to lose thousands is either you bet that much to begin with or are using margin (which you aren't using)

Also one more thing to keep in mind in case you decide to do anymore trading tomorrow is you can only day-trade three times a business week (5 days). day-trading as it sounds is when you buy and sell on the same day, if you do it more then three times you'll be unable to buy or sell anything same day for 90 days. go to your account to check that.

>> No.19099870
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19099870

>>19099825
You're about to get Guh'd. Ever see -$100,000 in ur Robinhood? You'll have to work for them or something to pay that shit off. Good luck selling at the inquired price range zone

>> No.19099872
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19099872

>>19099320
HOLY SHIT OP I CAN'T BELIEVE YOU DID THIS


YOU ARE SO FUCKED DUDE WHY DID YOU DO THIS LMAAAO

>> No.19099887

>>19099857
Thanks so much - any other useful tools like that? Any courses to learn investing etc? All I know is buy low and sell high

>> No.19099896

>>19099872
Oh fuck

>> No.19099900

>>19099825
Yeah, I'd set a limit sell at like 0.05. The stock will likely go down or stay stagnant tomorrow since like I said, the stock is constantly being pumped and dumped and right now it's been pumped (but it may go a little higher before the dump, maybe.)

I'd say just take the newbie L and lose like eight bucks.

>> No.19099912

>>19099887
Don't listen to >>19099857
he's fucking with you, you need to take care of your account for the love of God don't let that expire. Genuinely trying to help on the off chance this is real.

>> No.19099932
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19099932

>>19099912
okay how do I sell it quickly? What should I set stop price and limit price to

I just am about to do this

>> No.19099939

>>19099932
buy puts

>> No.19099954

>>19099932
you need to buy a put on top of that. if it expires you are going to buy 100 shares of FIT and get in debt with the brokerage

>> No.19099966

>>19099887
https://www.youtube.com/watch?v=vvAND3hDRwc is a nice beginner video.

One really important thing I forgot to tell you, and this is extremely important, is that say for an example you buy a single call option and it's priced at $1.00 - that's actually $100.00. Every contract is multiplied by a hundred.

>> No.19099968

>>19099932
puts idiot

>> No.19099988

>>19099717
Kek, OP, I believe you so I'll go right out and tell you to only trust this anon in the thread. Everyone else is fucking with you.

What you're thinking about is longs and shorts, not calls and puts. With the former you can get fucked really hard with deb, but you have to be a big millionaire boy to play longs and shorts. Nobody will give a joe shmoe credit for these financial games.

You're fine. You'll lose maybe $16.

>> No.19100003

>>19099932
You can't sell afterhours, the market is open between 9:30am est ~ 4pm est monday to friday. Any order placed before or after those times is executed when the market opens or closes.

>> No.19100005

Why are people pretending this isn't a larp lmao

>> No.19100006
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19100006

>>19099966
Stop trying to scam this guy bruh. He has kids and a wife. Don't listen to this anon

>> No.19100011

>>19099320
>>19099340
>>19099405
>>19099410
I'm fucking on ground man. I'm dying

>> No.19100024

>>19100005
I'm 99% sure it's a larp but just in case it's genuine I'll give em' some pointers.

>> No.19100034

>>19099405
I'll answer honestly since I feel bad for you.....they will expire worthless unless you sell them before the 22nd, or exercise them (buy the shares at the agreed strike price). you're not the kind of guy who's exercising options, so yeah, you gotta sell them.

>> No.19100047

>>19099374
>Do I sell them back or something. I haven't learned much about options trading and I just bought them accidentaly
Anon, what would you do when you end up impregnating Karen by accident?

>> No.19100048

At least tell us what the stock is honestly senpai

>> No.19100049

>>19099988
>>19099639
STOP listening to these guys op. for real. Do you want this shit to happen to you?

https://youtu.be/A-tNkuYV4_Q

No? then just follow my instructions. Buy 4 puts on top of those 4 calls and they will "cancel" each out, rendering the investment worthless (AKA you get your money back, nothing happens)

>> No.19100057

going in debt with the brokerage is a shit position to be in

>> No.19100074

>>19100048
it's fitbit lmao. they are going to crash

>> No.19100082

>>19099320
just hold you got a week maybe amazon will buy them at a 300% premium

>> No.19100151

>>19100011
you need an ambulance?

>> No.19100187

>>19100049
holy shit haha

>> No.19100224

>>19100049
>>19100187
I watch that video every time I sell for a loss for comfort. Feels okay man.

>> No.19100264

Unironically a good thread, fellas, please learn from this fag's fuck up.

>> No.19100292

>>19099633
It’s lying. Exchanges do this a lot

>> No.19100322

These contracts actually have good open interest and have ok volume with moderate volatility. If it were me I’d actually hold them until they moved up at all and sell to close or ride it out until the 22nd. I mean...it’s $16. Worse case scenario you can’t buy BK and Andy’s next Friday. Best case scenario you can make your Andy’s concrete a large.

>> No.19100344

>>19100322
Yeah I don't even care about the money anymore

These people above almost gave me a heart attack because they though it was funny. It was really funny though.

can I just wait until the 22 and have it automatically sell?

Also any recommendations on courses or books I can read to acctually understand all this? I am currently ready Poor Dad Rich Dad

>> No.19100402

>>19100344
If you want to, but you need to understand that every day you hold a contract it'll lose value.

>> No.19100410

>>19100402
Okay I'll sell it right now. What values should I put in to break even at least

>> No.19100469

>>19099762
good luck OP lmao

>> No.19100481

>>19100469
Yeah whatever it was funny before but it clearly isn't true anymore

you got this boomer hahahaha

>> No.19100515

>>19100024
Why? Did you forget you were on 4chan or are you just a plain ol faggot?

>> No.19100540

>>19100481
Just sell for market price tomorrow morning, wait until like ~9:45am just in case you get lucky with a quick pump. Best bet is you'll either make or lose 8-10 bucks.

>> No.19100544

>>19100344
If you do nothing and let it expire you lose $16. Set a sell limit of $5 good until canceled and forget about it.

>> No.19100576

>>19099374
If this is the competition I think I can make it.

>> No.19100756

Just make sure it’s not above $7 at close on date of expiry. If it closes at $7 or above on that day you’re going to buy 400 shares of FIT and you’ll have to pay for them. If you don’t you get a reneg violation and that’ll follow you to any brokerage you trade at.

>> No.19100853

>>19099320
WOW THIS SHIT JUST SHOT UP LIKE A ROCKET MOFO ON THE BADABING FUTURES INDEX
OP, YOU MADE IT DON@T SELL

>> No.19100908

>>19100853
Wht what????

What do I do?????????????

Anon????

>> No.19100928
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19100928

>>19099872

>> No.19100967

>>19100908
FUCK.
ITS GOING DOWN AGAIN
SELLL

>> No.19100976

>>19100967
WHERE AND HOW DO I SELL

MARKET?

>> No.19101006
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19101006

>>19100967
What price do I sell it at???

>> No.19101023

>>19099872
I don't understand - what did I do wrong?

Could you like explain please because I'm interested

>> No.19101432

>>19099670
Dont listen to these fags you cant lose more then u put in

>> No.19101606

>>19101432
okay but what about the dude above telling me to sell etc?

I just want to know the best way to get rid of this until I learn about calls and puts and how they work. What limit/stop etc price should i sell at

>> No.19101724

>>19099615
Robin Hood wants to downplay the risks. Calls are the riskiest thing you could have bought. Puts are safer in this anons humble opinion.

>> No.19101774
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19101774

>>19099374
How does 16 Quantum Gazillion dollars sound anon?

>> No.19101876

you can lose infinite money if you SELL calls or puts OP..

You can only lose what you paid for when you BUY options.

>> No.19102873
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19102873

>>19101876
Okay so in this situation am I screwed or not? I pressed a couple buttons and ended up with this instead and my old one dissapeared

>> No.19103315

>>19102873
Oh hes an Israeli jew jogger