/sci/ - Science & Math

[Anonymous No.3625712]

>mfw i bought a shitload of apple put options on Apple stocks upon hearing the news steve jobs is retiring
>easiest $5k I ever made in one day

>2011
>not trading derivatives on financial exchanges

And you think you're intelligent, HA HA HA.

[Anonymous No.3625719]

I dumb do not understand

[Anonymous No.3625728]

[Anonymous No.3625730]

lol are you retarded? Congrats on your 2% gain.

[Anonymous No.3625729]

Steve Jobs has been integral to apples success in years
markets are stupid

[Anonymous No.3625732]

>>3625729
hasn't

[Anonymous No.3625745]

>>3625730
>>3625730
>pay a small premium for the option
>exercise and receive payoff equivalent to the option strike price minus the underlying
>retarded

idontthinksotim

[Anonymous No.3625750]

Did Apple go up? Strange. I would have expected the opposite.
But then, I have no idea how economy works

[Anonymous No.3625754]

I don't care about money.

[Anonymous No.3625757]

>>3625750
>>3625750
no. apple went down by 5%

the OP (apparently) bought put options, which increase in value when the stock decreases. essentially it allows the OP to sell apple stocks at a price that is 5% higher than the market price.

ofcourse, OP is just some retarded college kid and did not actually do this

[Anonymous No.3625758]

>doing something for the money
Sure is underage b& in here.

[Anonymous No.3625761]

>implying my job doesn't solely consist of trading derivatives
>mfw my yearly bonus is 5 average engineer salaries.

[Anonymous No.3625764]

>>3625754

So.. you live in a cave and eat leaves?

[Anonymous No.3625770]

>>3625712
How the hell would I trade derivatives, I'm shit broke, I have no capital?

[Anonymous No.3625781]

>>3625770
get your ass to work then poorfag. the market always welcome fresh suckers ready to part with their hard earned cash!

[Anonymous No.3625778]

>>3625764
No, but enough is enough.

[Anonymous No.3625786]

>>3625770
>>3625770
>not having capital
>2011

[Anonymous No.3625787]

>>3625712
...and you have no one to take and celebrate with, so you come on here to gloat about your millions and lack of social life.

[Anonymous No.3625790]

>>3625761
>>3625761
>implying you know anything about derivatives

[Anonymous No.3625792]

>>3625787
>implying cash is not a valid replacement for friends

[Anonymous No.3625799]

>>3625792
>implying $1000 a night hookers are better than free girlfriends.

[Anonymous No.3625803]

>>3625757
Is someone seriously stupid enough to sell you put options when Apple was obviously about to drop?

[Anonymous No.3625807]

>>3625712

>2012
>makes a lucky stock choice
>confusing skill with luck
ishygddt

[Anonymous No.3625834]

well there's certaintly no arbitrage oppurtunities anymore, if there ever was (which I doubt).

free lesson here too.

see the "ask" column? that's the premium you pay for the put option, P. now look at the "strike" column, that's the strike price of the option, K.

the payoff of a long put option is K - S, where S is the stock price of apple. The current stock price of apple is about $370

notice any put options where (K-S) - P >> 0?

DIDN'T THINK SO.

[Anonymous No.3625845]

>>3625834
>>3625834
>>3625834
>>3625834
>>3625834

[Anonymous No.3625856]

>>3625834
SCIENCE!

[& !ZPCWgyUBjc No.3625862]

People just aren't looking in the right places anymore, to be honest.

I've made myself a moderate fortune by playing the stock market, there are some companies that you wouldn't even think of that have really nice dividends that you wouldn't have even guessed... I think I can share with you guys one: Pepsi.


That and I invested over $300,000 CND in gold both before the Canadian dollar was worth more then the US dollar, and before the beatiful gold value hikes that have been occuring recently. $35/Troy ounce up in one day, haha!

[Anonymous No.3625880]

>>3625799
>girlfriends
>free

[Anonymous No.3625957]

>>3625862
>dividends

[Anonymous No.3625963]

How much capital should one have before getting into options?

[Anonymous No.3625982]

>>3625957

Dividends are the thing that actually makes a stock worth something, bro.

[Anonymous No.3625988]

>>3625963
>>3625963
hardly anything if you're just looking to play around. for example,
>>3625834
you can buy an option for 6c

although, you'd be near retarded to buy that option.

[Anonymous No.3625994]

>>3625982
>>3625982
>implying any real investor gives a fuck about dividends

capital gains bru

[Anonymous No.3626007]

>>3625745

You sound like you just figured out how put options work and you're very impressed with yourself. Come back to me when you understand synthetic long puts.

[Anonymous No.3626015]

>>3625982

He's right, dividends are actually very useful. Any good portfolio should have some long holds in stocks with solid histories and good dividends as a source of steady income and risk mitigation.

[Anonymous No.3626021]

>>3625994
>any real investor

[Anonymous No.3626027]

>>3626007
>>3626007
>implying there's anything complicated about a synthetic option

seriously i'm not that guy but it sounds like YOU just heard about options and the stockz marketz

come back when you can derive the black scholes equation using ito's lemma.

faggot

[Anonymous No.3626030]

>>3626021

"Our favorite holding period is forever." - Warren Buffet

[Anonymous No.3626034]

>>3626007
>>3626007
short the underlying and long the call? seriously.

>>3626007
this

[Anonymous No.3626061]

>mfw no one on /sci/ knows anything about mathematical finance

IT'S A BEAUTIFUL AND PROSPEROUS FIELD GUYS GET AROUND IT

SERIOUSLY.

LIKE PROBABILITY? LIKE MATHEMATICS? WANT TO MAKE MONEY? FUCK ME THIS SHIT IS FOR YOU.

[& !ZPCWgyUBjc No.3626064]

Well, obviously I'm not going to reveal those few companies that are just absolute great ideas to invest in: less competition = more money for me.

I spend, on average, 2 hours a day reviewing all the companies that come to my attention. I have a room that could make for a nice private library, except that it's filled with binders that have various annual reports that I have to read through.

I mentioned pepsi (PEP, if you're really that lazy) because, generally speaking, dividends can be used as an indicator of investment quality. Not that dividends themselves aren't a nice bonus at the end of the year, nor that they are my primary concern when investing. I can stand to lose a few hundred thousand in the short hand, if it results in long term gains.

[Anonymous No.3626086]

>>3626061

Question: Should I major in stats or math to get more background?

[Anonymous No.3626107]

>>3625862
lol, retard, you didn't do anything by buying in $CAD. You hold the same amount of gold you would have if you had bought in $USD

[Anonymous No.3626136]

>>3626086

Plz halp guis

[Anonymous No.3626142]

>>3626136

Stats courses seem to offer more in the way of probability all the way up to stochastic calc, whereas math seems to be more abstract / science oriented.

[Anonymous No.3626143]

>>3626086
What is your goal?

[Anonymous No.3626145]

>>3626143

I'm going to law school but want a solid quantitative background in finance.

[Anonymous No.3626153]

>doing your own trading
>not making a solid milti-million dollar salary with huge bonuses and a percentage of your gains made with your employer's massive leverage

[Anonymous No.3626154]

>>3626145
If you don't get in to a top 14 law school, don't bother going.

[Anonymous No.3626165]

>>3626154

I'm in Canada, we have less law schools and while some are better than others none of them preclude employment in the same way certain US schools do. It still ends up being "get into the top 14" but to get in I really just need a 3.5 and a solid LSAT score.