Smooth brain here... Can someone help explain options trading?

  1. God dang this sub really messes up options in every way. It's just bets with expiration dates. The bears will win this Sunday stuff. Some people here use them to bet their entire net worth. Not really recommend but when they win its super sexy.

  2. I don't need a whole lot of convincing, I just watched a clip of a guy trading based on a dream he had the night before...

  3. Why weekly calls. Why not exp Jan 2023 like Cohen? You could have bought 2 calls at $45 and made $100 already

  4. Right but I usually get the same experience trading stock on the short-term. It's alot less risky as well since when I'm red I can just hold indefinitely.

  5. Yeah I've gotten that far, just from the outside looking in it's hard to understand how it really works. Like I get that you're betting on the future price of a stock, but what are you actually buying? Why do you profit at all if you're correct? Shit like that.

  6. I've already bought a little BBBY no worries. I'm pretty decent with normal trading and I'm excited to see where BBBY is going.

  7. Right, the options trader is the player obviously, but what I'm having trouble understand is who is the house? Who takes the money if you bet wrong, and who is paying you if you bet correctly?

  8. What you do is deposit all your money and set ticker to BBBY and set the maximum buy orders. I'll tell you the next steps afterwards.

  9. You bet stuff and then you make a ton of money the end .. thanks for coming to my Ted talk .. use YouTube eeediot

  10. Do you want to actually learn how to make money? Here's what you do, study cash covered puts. Learn how those work. Think of it as a limit order for something you want to buy. Do that for a couple of years. Start to branch out from there. I got into the market around 2005. Lost a ton of money in 2008. Didn't really do much until 2012. Started trading actively again around 2015 and didn't get really good at all of this until about 2016 with a lot of dedication. My average y/y return since 2016 is 24%, but with less volatility than the QQQ.

  11. Options on WSB is simple. You put 10K into your account, go all in buying OTM options expiring in 1-3 days, and then somehow end up losing -20K. This is how it works here

  12. Long story short you are placing a bet that a stock goes up or down with a time limit——and the value changes bases on time left, how volatile the stock has been + other factors.

  13. Think of it like a very sensitive stock buy with an expiration date. On a call, your betting that the stock will go up, and you will make a ton more money because you own more shares for less money. However, this also means you will loose more money if it goes down. Puts are the exact opposite. Your betting the stock will go down, if it does, you make money. If the stock goes up, you loose money. The closer you get to the expiration date, you start to loose money due to theta decay.

  14. Let us say you want to be in the gambling business. Would rather be a Gambler or the Casino? Who has the better odds? Once you understand this then you will understand options trading.

  15. options trading is gambling. big wins, and big losses. Learn about ITM/OTM. The longer the contract term, the "safer" it becomes. I stick with ITM options. Also learn about MACD and need to understand charts.

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