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/biz/ - Business & Finance

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26791920 No.26791920 [Reply] [Original]

retard here. can some1 plz explain what is calls and puts. thx

>> No.26791980

Usually I CALL your mom and we pick a time to meet up. Then I PUT it in her.

This is not market advice btw, I just like your mom.

>> No.26792049

>>26791980
Smoker COol

>> No.26792108

bump

>> No.26792153
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26792153

>>26791980
my mom is home every day and cooks me food. i dont think u are telling the truth. are u lying?

>> No.26792212

>>26792153
When I tell her I love her after its not exactly the truth....

>> No.26792326
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26792326

>>26792212
my mom is married to my dad and she cooks me food everyday at home. why r u lying to me? stopp it and be my fren and explan call and put.

>> No.26792387

>>26791920
A Call gives you the right, but not the obligation to buy a stock at a certain price if it hits the strike price. Puts are the reverse. These are called options, they have potential for huge upside but also the potential to lose ALL your money if the stock doesn't hit your strike price.

>> No.26792444

basically just a slip of digital paper that says you can buy or sell 100 shares of a stock at x price, regardless of whatever price the stock is selling for at the time.
you can activate this or just sell the contract to someone else. there's calculators online that will show you a range of different payouts you could get if you're interested.

>> No.26792484

>>26792153
anyone else see the head and shoulders here

>> No.26792548

Think of it like a down payment for a house. You want a $100k house, so you buy the option to buy it for $200k in 2025 at a premium of $20k. Now its 2025, but the house is now worth $400k. But u get to buy it at $200k because tht it your strike price. But if it doesnt hit your strike, you have to pay the market price and you get rekt

>> No.26792756

>>26792548
yea but if it doesn't hit your strike price of $200k and its only $150k, how do you get rekt?

>> No.26792997

>>26792756
20k premium

>> No.26793143

>>26792997
so if you want the house, you pay $150k for it and figure in the $20k premium you lost since no strike price = $170k. looks like you saved $30k but in reality lost $20k.

>> No.26793258
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26793258

>>26791920
A call is when you call your broker and tell them to take all your money
A put is when you put all your money in your broker's hand
>>26791980
I like to fard in my hand and sniff it
>>26793143
Good! Options are used to hedge risk. They are like insurance.