/biz/ - Business & Finance

[Anonymous No.22477798]

Hey /biz/

Just learned about options and came up with this idea.

What if you buy a put option of a really volatile stock that is dumping and at the same time go long on this stock?

It either dumps and you make money with the option (and you close the long trade, when the dump momentum is confirmed) or it bounces up and keep your long trade. The worst case scenario is that the gains of the long trade in case of a bounce all less than the premium you paid for the options.

What could go wrong?

Only serious answers from experienced traders. Don't make me go to r/wsb

[Anonymous No.22477816]

[Anonymous No.22477824]

>>22477798
what is the name of this chef d'oeuvre?
brap on the floor?

[Anonymous No.22477829]

>>22477798
the gains of the long trade in case of a bounce are*** less than the premium you paid for the options.

[Anonymous No.22477883]

did I ask at the wrong board?...

[Anonymous No.22477905]

[Anonymous No.22477928]

[Anonymous No.22477930]

Protected/married put. You got the “what could go wrong” right - if the option doesn’t go anywhere, you lose the premium.

[Anonymous No.22477990]

>>22477930
so it already exists as an idea

is this a profitable/low risk strategy?

[Anonymous No.22478035]

>>22477798
Zoom on the left torso area, notice the bump and the shitty photoshop job.
Imagine how fat she is.

[Anonymous No.22478059]

>>22477990
its not really a "strategy" but more of a hedge of your long position, it's like buying insurance on your long position in case it shits the bed

rather just buy a call and a put (straddle) if you know heavy volatility is coming

[Anonymous No.22478061]

>>22478035
>dreams ruined

so natural ass/torso ratios like this are a pipedream :(

[Anonymous No.22478063]

>>22477798
the moment you think the dump momentum is "confirmed" and close your long it starts pumping

[Anonymous No.22478075]

>>22477798
this is called 'gamma scalping'
when you're long premium position, you're positive gamma and as long as you keep your delta and vega in check, it is an inherently profitable strategy because the position will increase by gamma.
You can understand this relationship better if you visualize the differentiatial equation of an American call option

[Anonymous No.22478092]

>>22478059
why not do this on volatile penny stocks? the premium will probably be cheap too... Would it be cheap? for $1 stocks?

[Anonymous No.22478106]

>>22478075
alright I found it:
dC = dS * delta + 0.5 (dS2 ) * gamma + d Sigma * vega - theta

in plain English this means: the change in option value is delta x stock price change + 1/2 gamma x stock price change squared + IV change x vega less theta. Once you have hedged the delta (by going long on the stock against your put), and assuming IV remains flat, then you are simply paying theta every day and, in return, collecting gamma (I.e. stock price change ^ 2 is always positive).

[Anonymous No.22478144]

>>22478092
you are a newfag arent you?
if the underlying is volatile the implied volatility (IV) gets included into the option premium
and i bet that the spread on pennystock options is really wide too
just read the wikipedia /investopedia sections about options or a book

[Anonymous No.22478221]

>>22478106
wow. /biz/ is clever after all.

Im a beginner trader and just learned about options.

In plain english: Do you think that using this "strategy" on volatile, diluted, bleeding, bagholding, $1~$5 stocks is profitable?

[Anonymous No.22478262]

>>22478144
I am a total newfag in options. Just watched a tutorial. Didnt say anything about IV in the first hour of the total 2,5h. DAMN THAT JEWS. THEY THOUGHT UP OF EVERYTHING!

How much will the said volatility impact the premium price?

And just say that the stock isnt super-volatile, but it has a downward/bleeding pattern. How would that affect the premium price?

[Anonymous No.22478361]

>>22478144
Also just watched a video on implied volatility and it seems getting the option strike price really close to the current price will keep the option cost very low.

IS THIS TRUE? DID WE FIND THE WAY TO BEAT THE JEWS IN THEIR GAME? DONT LET THE INTERWEB KNOW ABOUT IT.

[Anonymous No.22478384]

>>22477798
thanks for the test boost, im about to workout

[Anonymous No.22478407]

>gets snibbed by the crab

options expire so you need volatility for this strategy to pay off

[Anonymous No.22478432]

>>22478361
yeah its true, the more ITM the option is, the less IV is considered
but for ITM options u need more capital, because they are more expensive
and if price goes against you, you lose more because you dont only lose the hope like in OTM options but also real value because the ITM option had real value behind it if you would exercise it in any given moment

[Anonymous No.22478509]

>>22478407
im talking $1~$5 NASDAQ stocks
they're volatile enough

>>22478432
Im talking about getting an option as close to the current price as possible. On very cheap ($1~$5) stocks. The premium wouldnt cost more than $800. Right?

I THINK WE ARE UP TO SOMETHING /biz/. DONT LET INTERWEBZ KNOW.

[Anonymous No.22478555]

Im feeling EUPHORIC /biz/!!

ALL the dreams about making it MAY come true after all.

I hope this works. Im tired of the crypto ponzi

[Anonymous No.22478583]

>>22478509
>im talking $1~$5 NASDAQ stocks
>they're volatile enough
Not necessarily, TSLA was more volatile than some of those stocks. But obviously the IV was too

[Anonymous No.22478590]

>>22478509
i dont know how much it would cost, you didnt specify experation date retard
weeklies, monthlies? 2-3months?

>DONT LET INTERWEBZ KNOW
stop this s*y shit u cringe sissy
only degenarates and high iq people trade options because most people dont get calculus

[Anonymous No.22478668]

>>22478555
if you want to /make it/ with options go to /r/wsb faggot
if you buy options its like playing the lottery
if you sell options its a steady stream of income until you get burned and blow up your account

[Anonymous No.22478714]

>>22478221
It's alright but you need a really good way of finding: 1) highly liquid 2) low IV stocks. Plus the constant rehedge could generate high trading fees.

[Anonymous No.22478728]

>>22478583
Well the whole idea behind this strategy is to give as less money at the premium as possible so you make profit by the gains in case it bounces back.

Buying a $50k~$100k put for TSLA premium would beat the whole purpose of the strategy. (and i dont have this kind of money anyway lol. I need to beat the jews first, remember?) The whole point is keeping the premium price low.. and make consecutive profits off these kind of trades.


PLEASE KEEP ALL THE INFORMATION ITT CONFIDENTIAL

[Anonymous No.22478829]

>>22478668
im talking buying put Options (and hedging at the same time)

You get to short sell with limited risk (only the premium instead of the unlimited risk of short selling). AND you bypass all the borrowing fees. You know that these bleeding low cap stocks are hard to borrow for shortsell.

PLEASE, PLEASE. DONT LINK THIS THREAD OUTSIDE. IM AFRAID THAT THE JEWS WILL MAKE ADJUSTMENTS TO THEIR BROKERS AGAINST THIS PLAN

[Anonymous No.22478905]

/biz/ i hope i dont see this strategy at youtube penny stock gurus videos soon.

That would be disgusting.

Keep this between us. Its the /biz/bros gift.

Im concerned though because lots of newfags lately from around the web, but they wouldnt bother messing with options. :)

[Anonymous No.22478920]

>>22478221
Stop, stop avatarfagging with disgusting roasties, pick up a book or at least a youtube tutorial. This isn't a game. Someone is going to take your money and enjoy dinner with it

[Anonymous No.22478926]

Tell me your final take on this.

Im deleting this thread in 10 minutes.

[Anonymous No.22478981]

>>22478920
" Someone is going to take your money and enjoy dinner with it"

Too vague. Tell me what could go wrong. I only risk the amount equal to [option put premium , closed to current price of a low priced stock (-) long profit]

7min to delete

[Anonymous No.22479070]

Any last opinions? Anons?

>>22478920
im posting only high quality fem specimens.

4min to delete

[Anonymous No.22479087]

>>22477798
>What if you buy a put option of a really volatile stock that is dumping and at the same time go long on this stock?
if it crabs you lose your option play

[Anonymous No.22479110]

>>22478981
then try it and come back later when you realised the flaw in your thinking

[Anonymous No.22479121]

>>22477798
it must be great to be a woman. you literally just have to touch something (painting, bath water, etc) and you can sell it

[Anonymous No.22479127]

>>22477798
simps honestly get the gas before jews and communists now

[Anonymous No.22479196]

Some dude will buy that just to sniff it

[Anonymous No.22479230]

JANNIES!!!

THIS IS A PICTURE SHOWING THE UNCLOTHED PARTS OF A REAL 10/10 FEMALE.

THIS FEMALE IS CALLED LIARA ROUX.

THIS FEMALE YOU WOULD NEVER COPULATE WITH BECAUSE YOU WASTE YOUR TIME JANNING FOR FREE A DEGEN CRYPTO GAMBLING BOARD INSTEAD OF FINDING REAL WAYS OF MAKING MONEY.

HOW DOES THAT MAKE YOU FEEL?

WHEN I MAKE IT I WILL POST TIMESTAMPED PICS OF MY DATE WITH LIARA ROUX (WHICH I WILL GORILLA FUCK LATER).

THANK YOU ANONS FOR EVERYTHING

JANNIES YOU HAVE ONE JOB. NUDE FEMALE PARTS MEANS BLASTING THIS THREAD INTO OBLIVION!

[Anonymous No.22479250]

>>22479087
1.volatile
2.crabbing

>pick one

@LIARA IM COMING FOR YOU MY WAIFU :')

[Anonymous No.22479274]

>>22479250
it can be volatile but not move enough to make your options pay for themselves and losses

[Anonymous No.22479281]

this is what perfection looks like anons

having a girl like this, by your side and obedient is what making it is. It's biological. You cant get around it.

[Anonymous No.22479320]

>>22479274
The whole point is by a premium with such a low price is that The risk/profit potential is golden.

I hope that you agree with this...

[Anonymous No.22479371]

jannies.. You have one job!!

Wait a minute.. Perhaps you consider this art instead of pornography.

:)

[Anonymous No.22479401]

>>22479371
in that case. Jannies, you are people of taste! You cant go wrong with Liara


Im manually deleting the thread in 2m

[Anonymous No.22479405]

>>22479320
the problem is that the profit opportunity is usually priced into the option contracts

[Anonymous No.22479433]

>>22479401
but just having taste wont make you succeed in getting specimens like these.

You need capital jannies, get to work (i mean real work!)

[Anonymous No.22479443]

>>22479121
>bath water
p-please. it’s too soon

[Anonymous No.22479477]

>>22479433
pretty sure this is the cunt that charges 10k for a fucking starbucks coffee with her? also thanks for the pics anon see you in three days

[Anonymous No.22479499]

do you have a bush fetish or something, looks really disgusting

[Anonymous No.22479515]

>>22479405
>profit opportunity is usually priced

based on what. Price prediction? In jew market?

If it was oracle/crystalballmedium-tier priced in, Noone would be bothering with options.

[Anonymous No.22479557]

>>22479121
>implying there are no faggots or trannies that would buy your degeneracy

[Anonymous No.22479598]

>>22479477
you re welcome

thanks anons for all the info.

its $10k for her to fly to you in the Us and spend the day and night (overnight stay too) with you

if I make it with this strategy, $10k will be pennies compared to the compounding gains!

>>22479499
no bush fetish. just liking a natural 10/10 woman

[Anonymous No.22479698]

deleting within a minute

take a last look upon the goddess

[Anonymous No.22479791]

Lol. Im here since 2007.

It seems its impossible to delete a thread. Only posts.


JANNIES!!! DELET

[Anonymous No.22480065]

>>22479281
That’s a whore

[Anonymous No.22480066]

>>22479070
>im posting only high quality fem specimens.
lawl i only see fatties