Investing General Discussion

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Furry

WoW Office
<Gold Donor>
19,280
24,168
Me and my [now]grandpa stocks are just watching all this bs.
 
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Locnar

<Bronze Donator>
2,711
2,993
I’ve been strong up until this moment. Someone please talk me out of buying back in to AMC @$7.00

Look for a sign to guide you my child.. shine bright like a diamond

1612318364257.png
 
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Locnar

<Bronze Donator>
2,711
2,993
i've never laughed so hard reading shit on the internet before, the WSB comments literaly make me feel my life is in danger, laughing so hard I feel like a aneurysm is gonna pop.

If im not heard from again, GME memes did me in
 
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Rangoth

Blackwing Lair Raider
1,530
1,643
ok, Yea...new guy back :( sorry for using the forum as a learning platform, but honestly not sorry too. I like this place and trust people. So anyway, in case there are others like me, my experience with the market up until the GME thing was basically put a flat amount of my paycheck every week into an eTrade account(not 401k, I do that also, this was for me and for fun). I would then use it to buy various stocks I liked for whatever(probably silly) reason and essentially hold them until I was a zombie, aka retirement for me. Overall eTrade tells me I am doing well, I don't say that to brag as mostly I am just "smart" enough to throw in a ton of extra money when the economy is shit(like the start of covid) knowing that I have 10+ years until I retire so I should buy a bunch of stocks I think will last the long term and tough out the lows.

TLDR: I am not trying to get rich quick, just trying to make some money long term, learn more about investing, and maybe increase my profits with marginal risk.

  • I am not asking for specific advice. I am capable of reading the daily chatter here and other places and making decisions
  • The screenshot is just a random picture of a stock I happen to own. I am not looking for specific advice on this stock or on the specific trade options
  • While I did read, google, and research and *think* I have an understanding. I am trying to be 100% certain of what the terms and conditions are....so to speak. Maybe this can help others as well?
1612317481716.png


So...using the example above, am I correct in my understanding? Numbers matching bullets below....

  1. This means someone will pay me 0.15$(x100) to have the option to buy my shares at 13.50$ at the close of the market on Feb 5th 2021? They also could choose to buy my shares at that price anytime before 13.50$ once they assume ownership of this option? I understand I can already own the shares or elect to "cover" once the sale happens, which can end up costing me potentially Y x 100, where Y is new market price of the stock which may be higher than 13.50$. However if I already own the shares and originally paid a price lower than 13.50$ this could be pure profit except for the potential earnings because I am unable to sell the stock at the new market price which may be higher than 13.50$
  2. This means I am buying the option to purchase 100 shares of the stock at 13.5 anytime before or on the close of market at Feb 5th, 2021. The ability to have this option is costing me a premium of 0.30$(x100). Essentially this means the stock needs to be worth 13.50 + 0.30 = 13.80 in order for this to be worth it or for it to be profitable. The advantage is that I do not have to buy the actual shares so my risk is lower and I am completely protected if the stock tanks and the disadvantage is that if it does tank or stays below 13.50$ I am out 100% of the premium(0.30x100) that I paid
  3. This means I would like to purchase 100 shares of the stock at 13.50$. Someone is willing to pay me 0.75(x100) in order for me to take this option. So at the moment of purchase I now have 75.00$. At the close of market(or should I choose to execute earlier) if the stock is below 13.50$, I must purchase the 100 shares at 13.50$. If the stock is above 13.50$ I am not required to purchase the stock. Either way I keep the 75.00$. Advantage here is that if the stock price stays high I got a "free" 75.00$, disadvantage is that if the stock is crumbling like a pile of shit I have to buy it at 13.50$. Can someone execute this on me prior to the expiration date if a stock is in a strong swing?
  4. I am purchasing the option to sell 100 shares of the stock at 13.50$(no matter the current market price). I am also paying 0.85$(x100) in order to have this option. The advantage is that if the stock is below 13.50$ I can sell it at a profit and if it is above that price I am not required to execute the option, but for this to be profitable it needs to be 13.50 - 0.85 = 12.65$. The disadvantage is that if the stock is above 13.50$(or really 12.65$) it is a loss to execute the option and my 0.85$(x100) is gone. Similar to #2, lower risk for potential bigger reward.
  5. At any point in time I can sell/buy a my option(or a counter-option? this part is confusing to me) to cancel out the current open order. Assuming a 0 change in market(I know unrealistic but for the purposes of academic understanding), any one of these choices would be a net 0.00$ change should I cancel/close it? How does it work well I am the one selling? Someone can execute at any time, correct?

Anyway, appreciate any feedback or corrections of my understandings above. Especially on #5. I am bit confused as to who has the power to call/cancel(right term?) an option when I am the seller, not the buyer. I get that as the buyer I can execute anytime or it will automatically execute upon expiration if the option is ITM.
 
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Rais

Trakanon Raider
1,275
631
Just picked up 4000 gme at the dip. You guys are going to be so jelly when the plan comes together. Just 3 more days.
 
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Sanrith Descartes

Veteran of a thousand threadban wars
<Aristocrat╭ರ_•́>
41,351
107,244
I’ve been strong up until this moment. Someone please talk me out of buying back in to AMC @$7.00
Just venmo me whatever you were going to invest and I will send you back 10% tomorrow and tell you that is all that's left of your investment. Why give it to a total stranger.
 
  • 4Worf
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Kiroy

Marine Biologist
<Bronze Donator>
34,561
99,746
Hey guys lets fuck over wall street by handing them our lifes' savings.

wall street is obviously fine, but a couple hedge funds took it in the ass pretty hard. they'll end up fine too, but I betcha some strait white male shitlord employees of said hedge fund got their throat's slashed over the whole ordeal. You should be pretty happy.
 

Black_Death

Golden Knight of the Realm
117
11
This really was a great 2 week distraction from the rest of the world going to shit. It's too bad it had to end so soon.
 
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Blazin

Creative Title
<Nazi Janitors>
6,379
33,478
ok, Yea...new guy back :( sorry for using the forum as a learning platform, but honestly not sorry too. I like this place and trust people. So anyway, in case there are others like me, my experience with the market up until the GME thing was basically put a flat amount of my paycheck every week into an eTrade account(not 401k, I do that also, this was for me and for fun). I would then use it to buy various stocks I liked for whatever(probably silly) reason and essentially hold them until I was a zombie, aka retirement for me. Overall eTrade tells me I am doing well, I don't say that to brag as mostly I am just "smart" enough to throw in a ton of extra money when the economy is shit(like the start of covid) knowing that I have 10+ years until I retire so I should buy a bunch of stocks I think will last the long term and tough out the lows.

TLDR: I am not trying to get rich quick, just trying to make some money long term, learn more about investing, and maybe increase my profits with marginal risk.

  • I am not asking for specific advice. I am capable of reading the daily chatter here and other places and making decisions
  • The screenshot is just a random picture of a stock I happen to own. I am not looking for specific advice on this stock or on the specific trade options
  • While I did read, google, and research and *think* I have an understanding. I am trying to be 100% certain of what the terms and conditions are....so to speak. Maybe this can help others as well?
View attachment 332714

So...using the example above, am I correct in my understanding? Numbers matching bullets below....

  1. This means someone will pay me 0.15$(x100) to have the option to buy my shares at 13.50$ at the close of the market on Feb 5th 2021? They also could choose to buy my shares at that price anytime before 13.50$ once they assume ownership of this option? I understand I can already own the shares or elect to "cover" once the sale happens, which can end up costing me potentially Y x 100, where Y is new market price of the stock which may be higher than 13.50$. However if I already own the shares and originally paid a price lower than 13.50$ this could be pure profit except for the potential earnings because I am unable to sell the stock at the new market price which may be higher than 13.50$
  2. This means I am buying the option to purchase 100 shares of the stock at 13.5 anytime before or on the close of market at Feb 5th, 2021. The ability to have this option is costing me a premium of 0.30$(x100). Essentially this means the stock needs to be worth 13.50 + 0.30 = 13.80 in order for this to be worth it or for it to be profitable. The advantage is that I do not have to buy the actual shares so my risk is lower and I am completely protected if the stock tanks and the disadvantage is that if it does tank or stays below 13.50$ I am out 100% of the premium(0.30x100) that I paid
  3. This means I would like to purchase 100 shares of the stock at 13.50$. Someone is willing to pay me 0.75(x100) in order for me to take this option. So at the moment of purchase I now have 75.00$. At the close of market(or should I choose to execute earlier) if the stock is below 13.50$, I must purchase the 100 shares at 13.50$. If the stock is above 13.50$ I am not required to purchase the stock. Either way I keep the 75.00$. Advantage here is that if the stock price stays high I got a "free" 75.00$, disadvantage is that if the stock is crumbling like a pile of shit I have to buy it at 13.50$. Can someone execute this on me prior to the expiration date if a stock is in a strong swing?
  4. I am purchasing the option to sell 100 shares of the stock at 13.50$(no matter the current market price). I am also paying 0.85$(x100) in order to have this option. The advantage is that if the stock is below 13.50$ I can sell it at a profit and if it is above that price I am not required to execute the option, but for this to be profitable it needs to be 13.50 - 0.85 = 12.65$. The disadvantage is that if the stock is above 13.50$(or really 12.65$) it is a loss to execute the option and my 0.85$(x100) is gone. Similar to #2, lower risk for potential bigger reward.
  5. At any point in time I can sell/buy a my option(or a counter-option? this part is confusing to me) to cancel out the current open order. Assuming a 0 change in market(I know unrealistic but for the purposes of academic understanding), any one of these choices would be a net 0.00$ change should I cancel/close it? How does it work well I am the one selling? Someone can execute at any time, correct?

Anyway, appreciate any feedback or corrections of my understandings above. Especially on #5. I am bit confused as to who has the power to call/cancel(right term?) an option when I am the seller, not the buyer. I get that as the buyer I can execute anytime or it will automatically execute upon expiration if the option is ITM.
Past my bedtime but I can respond to this tomorrow if nobody gets around to it prior
 

Mist

Eeyore Enthusiast
<Gold Donor>
30,275
22,008
wall street is obviously fine, but a couple hedge funds took it in the ass pretty hard. they'll end up fine too, but I betcha some strait white male shitlord employees of said hedge fund got their throat's slashed over the whole ordeal. You should be pretty happy.
In exchange, a whole bunch of idiots on the internet lost a ton of money a well.

I am pretty happy.
 

Loser Araysar

Chief Russia Correspondent / Stock Pals CEO
<Gold Donor>
74,088
145,433
In exchange, a whole bunch of idiots on the internet lost a ton of money a well.

I am pretty happy.

The number of people that love you is less than the number of people that love hedge funds.
 
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Ossoi

Tranny Chaser
15,402
7,668

“I keep hearing that ‘most of the GME shorts have covered’ — totally untrue,” said Ihor Dusaniwsky, S3 managing director of predictive analytics. “In actuality the data shows that total net shares shorted hasn’t moved all that much.”

“While the ‘value shorts’ that were in GME earlier have been squeezed, most of the borrowed shares that were returned on the back of the buy to covers were shorted by new momentum shorts in the name,” Dusaniwsky added in an email.
 

swayze22

Elite
<Bronze Donator>
1,211
1,091
they are good with memes on wsb though

short interest is 88.5% as of today on GME (i think i saw but you never know these days...)

EDIT: Saw an article that had it at ~39% and saw 88% from this evening, not sure but thought it was updated this evening.
 
Last edited:

Hateyou

Not Great, Not Terrible
<Bronze Donator>
16,207
42,096
wall street is obviously fine, but a couple hedge funds took it in the ass pretty hard. they'll end up fine too, but I betcha some strait white male shitlord employees of said hedge fund got their throat's slashed over the whole ordeal. You should be pretty happy.
NYC hedge fund guys. Straight. Lol