/biz/ - Business & Finance

[Anonymous No.26390784]

can someone make an options general? options are were the real money is made

[Anonymous No.26390845]

>>26390784
go back

[Anonymous No.26390866]

>>26390845
what?

[Anonymous No.26390974]

>>26390784
Why don't you do that then? You can make threads some of us don't have the privilege.

[Anonymous No.26391015]

>>26390974
im not good at it. should i just copy and paste /smg/ content and replace smg with options?

[Anonymous No.26391051]

>>26390866
to wallstreetbets

[Anonymous No.26391091]

>>26390784
people have come on here and shared options strategies before, I'll read it anon

[Anonymous No.26391226]

>>26390784
here I'll even start by reposting what another anon posted and I copied:

The wheel tries to price options out of the money so they expire worthless. I intentionally price them so my stocks get called away every month.

I'm SELLING options. I COLLECT the premiums in advance. It's the opposite of gambling. My risk is very low because it requires the stocks to drop very fast in one month, which is quite unlikely.

I design the contracts so i sell my stocks at a capital loss, but the premium makes up for it
>Buy stocks for $10
>Sell options with a premium of $1.4 and strike price of $9 set to expire in one month
>Earn 4% return monthly doing this process, that's a 60% annual return assuming all goes well (which it usually does, how often does a stock crash 10% in 30 days? occasionally but not too much).
>Not satisfied ENOUGH
>Sell puts on this exact stock for a premium of $1.4 and a strike price of $11 that expires the same day as the covered calls
>Earn another 4% monthly return on this alone, yearly that's 60% EAR a year
>If the calls are not exercised when the puts are exercised, money automatically gets borrowed to purchase the stocks but it doesn't matter since later that day the calls will be exercised and capital will flow into my account to cover the borrowing.

(1/2)

[Anonymous No.26391278]

>>26391226
Adding those two strategies together, a 152% yearly return.
>Also: Even if the stock drops 10%, you still earn money because the premiums > capital loss ($1.4 is greater than ($10 - $9). The stock needs to $8.6 for you to BREAK EVEN, and even below that if you are going to start losing.

And if you doubt this strategy, just look up option quotes for stocks. You can pick any stock, sell an IN-THE-MONEY covered call and make 3% monthly returns, so this is easily possible.

I'll simply it in one sentence:
>Buy stocks and immediately sell calls on it that you know will be exercised in a month because the strike price is lower than the market price. At the end of the month your stocks will automatically be sold and you'll have your principal + 4% because the premiums you get will dwarf the capital loss and you'll make a high return just repeating this.

(2/2)

[Anonymous No.26391406]

>>26391226
>>26391278
no i meant what options are you guys looking at? i dont careabout the technical side.alli know is calls go up and puts go down

[Anonymous No.26391429]

>>26390784
yes, you can make one

[Anonymous No.26391544]

the bad thing about options is not only do you have to be right, you have to be autistically right, because market makers will bend you over for buying your contract $5 too high and then most of the price action (and sweeping market catalysts) happen outside of market hours

honestly, leverage is what matters most in my strategy and I'm usually more comfortable actually buying 100 shares of stock that I'm bullish on rather than trying to fuck with buying calls

anyways I'll read your thread cause there's a lot I've yet to learn. When I try reading about advanced options trading and people start breaking down the profit talking about this leg and that leg I get lost

I will say I think I got pretty good at trading when I started fucking with options, hit my daytrade limit, lost 40% of my portfolio and had to claw my way back up into profit by taking positions that I couldn't immediately close. Highly recommended experience

[Anonymous No.26391654]

>>26391544
yea that stuff matters when we arent in a meme market but right now its literally stupid how stocks move. theres no rationality. thats why i go on reddit and see whats being memed because more than likely its gonnamove

[Anonymous No.26391836]

>>26391654
>yea that stuff matters when we arent in a meme market but right now its literally stupid how stocks move. theres no rationality.
That's where you're wrong. I used to have the same sentiment, but I kept trading and I kept lurking. I know you see shit like KODK moon and you wish you could've been in the loop to know that it was going to happen, but you can't wrap your head around it so you scream 'clown market'. But you're the clown. The market is the truth. Keep lurking and you'll get there

[Anonymous No.26392109]

>>26390784
>can someone make an options general?
Why not a gambling general while you're at it?

[Anonymous No.26392356]

>>26391406
faggot

[Anonymous No.26392819]

>>26390784
BACK TO PLEDDIT FUCKING NIGGER

[Anonymous No.26393099]

Here's an option for you:
Go back to r*ddit