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Replies: 17
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All-In [46795]
TigerPulse: 100%
Posts: 30710
Joined: 8/11/15
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ELI5: Options trading
Feb 20, 2019, 11:15 AM
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I have no idea what this is but I feel like rolling the dice
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All-TigerNet [11019]
TigerPulse: 100%
Posts: 12358
Joined: 7/5/03
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It's pretty simple...
Feb 20, 2019, 11:17 AM
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You're a UDP and will lose all of your money.
I recommend you either set it on fire or send it to Nigeria, either one will get you a better long run return.
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Oculus Spirit [75673]
TigerPulse: 100%
Posts: 108826
Joined: 10/26/03
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Sending it to me so I may start my empire would also
Feb 20, 2019, 11:27 AM
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bet a better investment.
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Oculus Spirit [97657]
TigerPulse: 100%
Posts: 64802
Joined: 7/13/02
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All-In [46795]
TigerPulse: 100%
Posts: 30710
Joined: 8/11/15
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You think I haven't googled it?
Feb 20, 2019, 11:44 AM
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I have no idea what I'm reading
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Oculus Spirit [75673]
TigerPulse: 100%
Posts: 108826
Joined: 10/26/03
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That is all you need to understand to stay the hell out.
Feb 20, 2019, 12:01 PM
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Really, just send me the money. Wilki and I will go to Vegas and I'll bet exactly how he tells me to at the craps table. I'll give him his cut, take my cut and you get some money back.
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All-In [33418]
TigerPulse: 100%
Posts: 32207
Joined: 2/20/04
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If you think price of stock will go up, buy call options
Feb 20, 2019, 2:06 PM
[ in reply to You think I haven't googled it? ] |
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If you think price of stock will go down, buy put options
And when you inevitably do this and and place market orders, the people on the other side will be really appreciate taking your money
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CU Medallion [64837]
TigerPulse: 100%
Posts: 22718
Joined: 9/27/04
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If you feel like taking a chance, why don't you just
Feb 20, 2019, 12:22 PM
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play russian roulette?
You can borrow my gun
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All-In [46795]
TigerPulse: 100%
Posts: 30710
Joined: 8/11/15
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Good luck with that little pansy ### gun***
Feb 20, 2019, 12:26 PM
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CU Medallion [64837]
TigerPulse: 100%
Posts: 22718
Joined: 9/27/04
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Not my actual gun. It's a joke.
Feb 20, 2019, 12:52 PM
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I have a Glock 23, but I don't really like it.
My favorite pistol is my Springfield TRP. That is a million times nicer than that glock.
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All-In [46795]
TigerPulse: 100%
Posts: 30710
Joined: 8/11/15
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I CC my 1911
Feb 20, 2019, 12:53 PM
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Had to buy a heavy duty belt
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CU Medallion [64837]
TigerPulse: 100%
Posts: 22718
Joined: 9/27/04
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You'd probably be wise to wear a heavy duty belt regardless
Feb 20, 2019, 12:55 PM
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maybe some suspenders while you're at it.
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All-In [46795]
TigerPulse: 100%
Posts: 30710
Joined: 8/11/15
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My belly hair tends to get caught up in the buckle
Feb 20, 2019, 12:57 PM
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which provides some support
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CU Medallion [64837]
TigerPulse: 100%
Posts: 22718
Joined: 9/27/04
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I hate it when my belt and my pelt get all Dguar'd up.***
Feb 20, 2019, 1:00 PM
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Oculus Spirit [97657]
TigerPulse: 100%
Posts: 64802
Joined: 7/13/02
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Oculus Spirit [82981]
TigerPulse: 100%
Posts: 80116
Joined: 11/29/99
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Dang, Clint!***
Feb 20, 2019, 2:16 PM
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Oculus Spirit [97657]
TigerPulse: 100%
Posts: 64802
Joined: 7/13/02
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Technically not my exact gun
Feb 20, 2019, 3:57 PM
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Pic of my exact gun though as far as looks. Identical.
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All-In [29076]
TigerPulse: 100%
Posts: 15470
Joined: 4/14/11
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It boils down to
Feb 20, 2019, 2:20 PM
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buying the chance to buy the stock at a certain price or buying the chance to sell at a certain price.
Say you think Ford is going to go up from $8 to $10 in the next 3 months. You could by a call option for the right to buy 100 shares at $9.00 each. If the option price was .08 then your breakeven price is 9.08. If Ford stock rises to anything over 9.08 then if you exercised your option then you would stand to make the difference between 9.08 and whatever price the stock was currently at per share if you sold those shares immediately. You could always exercise the option and then just hold the shares at a cost basis of $9.08.
Your risk in buying options is only up to the amount of the price of the option. If it is never in the money and expires worthless then you are out what you paid for it in the beginning.
Basically it's gambling on whether you think the market will go up or down.
Don't sell options, that's a good way to #### yourself real quick if you don't know what you're doing, which you don't.
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