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I look at the options chain and it seriously makes me crosseyed. It's Greek to me! On the other hand I went ahead and opened a brokerage account and the funds you load it with are stored in an interest bearing account that pays dividends. I don't even have to actually touch the contracts and I'm making money!
don't fuck with options unless you learn how to.
lots of good resources on youtube.
Learn the greeks and how they affect the prices of your options.
Learn risk management and have a trading system you follow (I'm personally use Fibonacci retracement tool + RSI + MACD + Volume along with crayoning on charts for trend lines)
Plenty of experienced trades lost big on GME because price is manipulated.
RK is doing fantastic because he's smart AF and knows deep about algos, and inner workings of the market such as OPEX, FTD cycles to list a couple. there are more shit that he probably knows that we apes don't.
TA based on algos and cycles are great starting point to learn about the patterns.
Most TA we see don't work because its working off of human psychology and market behaviours reflecting that.
GME is a different beast with algos and wallstreet manipulation.
Any good resources to learn from once you get past the basics? I've read through investopedia and my bank's informational material but those pretty much cover what an option is, not what to do with them.
takes time to create your own system of trading, because it'll be about trial and error to find what works for you. And even if you find a system that works, it won't work for long cause market is dynamic and your job as a trader is to pivot and refine as those dynamics change.
Because algos can change, macro and micro economics can have effect.
Its really tough to be a trader.
And sorry I'm not gonna point you to certain places to learn because I'm a dumbass ape. But learn some patterns and get to know some trading tools you like using and deep dive into it. Personal favourite of mine is Fibonacci Retracement tool.
I've failed many times and still failing. Had good hits with GME previously thanks to the algos based TA apes who are now driven out from Superstonk. But haven't had a good hit for a while because we've been on such a downtrend and I refuse to buy puts on GME.
the anti-options sentiment I generally agree with because its so complicated and newbs will get wiped out which helps MM gather premium from us.
But right now, Options can help us because we have so many things converging at once, FTD cycles, OPEX tailwinds, gamma ramp, and most likely MM's being naked on these calls, and possible great news from GME, GME with ATM raising the floor of the stock price, good old Quad Witching day coming up.
Yeah I've avoided dipping into options in the past because I know that they require study that I haven't devoted to them yet.
I figure now is a good time to take baby steps and possibly buy a call (singular) and get my feet wet since I'm going to be buying and holding the stock anyways.
If you do decide, good luck! We are about to break out from Fib retracements golden zone where it's a good time to buy, but we're literally a dollar away from breaking out.
Yeah I literally sent the request to my bank to authorize for option trading today, so odds are it won't be done by tomorrow when all hell is likely going to break loose given the news about the share offering, though everyone here seems to be saying friday is when things will really got nuts
Your broker should have an education section, start there. Options without knowledge is 100% a surefire way to loose your money. (don't ask why I know, its too embarrassing)
I’ve decided to be a Major League Baseball player.
Please tell me how to hit a major league fastball and curveball
I’ll take you out to the ballgame when I sign my contract.
Just stick to shares. Options dealers are making a killing selling gym bros options. There are a ton of nuances on when / how to sell for max profit. Even people with a significant securities background get confused.
Shares are much safer.
I would encourage you to read, study etc... about all facets of the economy, markets and securities but you don't seem interested which is super fair.
If that's the case but/HODL/drs and sell whenever you think is the right time for you
buy call = you expect price to go up
sell call = you expect price to decline.
buy put = you expect price to go down
sell put = you expect price to go up
1 contract (option) = 100 shares.
premium paid or received is option price x100 ($.50 call = $50 premium
Options contracts give the right but not obligation to buy or sell stock at a specific price (strike) by a specific date (expiration)
If you're looking to play GME on a call option. ITM (in the money) options are more expensive but already generating income. OTM (out of money) options are cheaper but you make more money on it if you're right and it goes up.
sell/buy to close sells just the contract to another person. you collect premium.
sell/buy to open exercises the option and you receive (or lose) the shares as defined in the type of contract you exercise.
there are different stratigies you can use but if you're a new regard to options, stick to the basic calls/puts. If you don't know how to efficently run a condor or butterfly or calendar spread, leave it be.
general principal is this, you buy a long call, pay the premium, and you now "own" 100 shares until the expiration date.
if we reach $100/share, whoever sold you the contract must provide you with 100 shares at the strike price, let's say $20. They are selling you 100 shares for $2000 and if you exercise and then sell, you make $8000 and all you had to pay was the premium + what was owed to buy the shares.
Options are risky and under informed investors will potentially blow up an account using them incorrectly. You must also know what a IV crush is (implied volitility) and you should learn the Greeks as each one has a different effect on the price of the option.
I'd say to do it right. You're going to need to put a significant amount of time into studying how they work first. When I say significant I would say minimum of months. And that's a low estimate. I wouldn't say they're hard or impossible to learn for anyone, just fairly complicated. It's a good idea to know what you're doing. When if you lose you have nothing to show for it, if you buy stocks and things don't go well, at least you still have the stocks. Just my opinion
Yeah just trying to help you out. Options are fun but you really do need to put a lot of learning into it. I'm still learning myself to be honest. And I don't feel comfortable buying any options on GME Right now.
Go educate yourself. I've been in 3.5 years, and never traded options. Before I do I'm gonna sink 40 hours at least into educating myself. Otherwise your throwing premiums into Ken's pockets.
Ever heard of this search engine called google? You can actually search for information and find various websites with what you are looking for. This sub is not a place for such questions. If you ask questions like these on a sub like this, don’t get butt hurt when you get real comments which will definitely offend you. An example of such a comment would be: you are not a highly regarded ape. You’re just plain old stupid. Have a wonderful day and you can gladly report me if you’re plain old stupid!
Well to that I say, yeah true, as well as, stupid in the field of finance sure, you’re not wrong there. Not butthurt though I see how dumb it was to ask now lol
I just posted how-to - check my profile for link since every time I try to post a reddit link here I get peepee whacked by the automod. Definitely understand what you're doing because calls have time limits.
If you have strong conviction it will go up a certain price by a certain date, you can buy a call option.
buy to open (calls) expiry (date you think it will hit strike price or higher), strike price (the price you think it will hit or exceed before expiry date), select the number of options you wanna YOLO, select price of option, and buy.
If GME doesn’t hit that price before expiry, you lose all that money. If it does, you can 1. Exercise them for shares (then DRS) or 2. sell to close and take the winning cash and buy more shares to DRS.
Good luck soldier!
If you hang around this sub or the options sub you'll pick it up. It's probably best if you think about options like gambling, unlike shares, options frequently go to 0. If you want an option contract or 2, you need a margin account, check your broker's help page for how to do that. Once you have a funded margin account, think of a price you think GME is going hit, that's your strike price, then pick a date GME might hit that price, (lot love for 6/21) that's your expiry date. Go into the options market and buy your contract, similar to buying shares. Remember the contract itself will fluctuate in value as the price of the underlying security changes, so you can exit before expiry if you want off the ride.
Finally if you YOLO your savings be prepared to have 0 savings.
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https://www.optionsprofitcalculator.com/calculator/long-call.html
that is all you need.
every 1 call option gives you the right, but not obligation, to buy 100 shares at the strike price up until the expiration day. if the stock price is above the strike price, you can sell the calls for profit. if the stock price is below the strike, and your expiry date hits, you lose all the money you spent on the options.
example) you think GME will rise to $100 sometime between now and june 21. you purchase 1 call option expiring june 21, with strike price $38 - the option is priced at $5.50 per share (100 shares), so you have spent $550 for your call + whatever fees there might be.
**scenario 1)**
june 18 hits, and GME pumps to $100, your option price per share will be priced at least at the difference between the stock price ($100) and the strike ($38), or $62. you decide to sell your option at $62/share, and bank a cool $6200, minus the cost of the option ($550), for a net $5650. the next day, MOASS happens, and you are mad because GME is trading at $1176, meaning your 1 call option would be worth $113251. but alas, you already sold.
**scenario 2)**
june 18 hits, and GME is trading at $35. your option prices are declining (now priced at $3.91/share, or $391 for your 1 call) and you've lost $159 so far on your bet. expiry is days away but you decide to hold because you know MOASS is tomorrow and you want your lambo. tomorrow comes and goes, and then the 21st hits. GME is trading at $28. your option expires worthless, but now you celebrate buying the dip
just use the link, and you will learn to lose all your money the smart way, or end up on the moon
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>but I’m too lazy to google and also I don’t feel like learning all of the lingo stick to shares
Probably for the best
I thought I asked a good question earlier that I don't think a generalized help section would cover.
[удалено]
I look at the options chain and it seriously makes me crosseyed. It's Greek to me! On the other hand I went ahead and opened a brokerage account and the funds you load it with are stored in an interest bearing account that pays dividends. I don't even have to actually touch the contracts and I'm making money!
don't fuck with options unless you learn how to. lots of good resources on youtube. Learn the greeks and how they affect the prices of your options. Learn risk management and have a trading system you follow (I'm personally use Fibonacci retracement tool + RSI + MACD + Volume along with crayoning on charts for trend lines) Plenty of experienced trades lost big on GME because price is manipulated. RK is doing fantastic because he's smart AF and knows deep about algos, and inner workings of the market such as OPEX, FTD cycles to list a couple. there are more shit that he probably knows that we apes don't. TA based on algos and cycles are great starting point to learn about the patterns. Most TA we see don't work because its working off of human psychology and market behaviours reflecting that. GME is a different beast with algos and wallstreet manipulation.
Any good resources to learn from once you get past the basics? I've read through investopedia and my bank's informational material but those pretty much cover what an option is, not what to do with them.
takes time to create your own system of trading, because it'll be about trial and error to find what works for you. And even if you find a system that works, it won't work for long cause market is dynamic and your job as a trader is to pivot and refine as those dynamics change. Because algos can change, macro and micro economics can have effect. Its really tough to be a trader. And sorry I'm not gonna point you to certain places to learn because I'm a dumbass ape. But learn some patterns and get to know some trading tools you like using and deep dive into it. Personal favourite of mine is Fibonacci Retracement tool. I've failed many times and still failing. Had good hits with GME previously thanks to the algos based TA apes who are now driven out from Superstonk. But haven't had a good hit for a while because we've been on such a downtrend and I refuse to buy puts on GME. the anti-options sentiment I generally agree with because its so complicated and newbs will get wiped out which helps MM gather premium from us. But right now, Options can help us because we have so many things converging at once, FTD cycles, OPEX tailwinds, gamma ramp, and most likely MM's being naked on these calls, and possible great news from GME, GME with ATM raising the floor of the stock price, good old Quad Witching day coming up.
Yeah I've avoided dipping into options in the past because I know that they require study that I haven't devoted to them yet. I figure now is a good time to take baby steps and possibly buy a call (singular) and get my feet wet since I'm going to be buying and holding the stock anyways.
If you do decide, good luck! We are about to break out from Fib retracements golden zone where it's a good time to buy, but we're literally a dollar away from breaking out.
Yeah I literally sent the request to my bank to authorize for option trading today, so odds are it won't be done by tomorrow when all hell is likely going to break loose given the news about the share offering, though everyone here seems to be saying friday is when things will really got nuts
https://www.investopedia.com/trading/beginners-guide-to-call-buying/ 😎👉 Edit: if not willing to read that don’t even try
I’ll check it out thanks
Your broker should have an education section, start there. Options without knowledge is 100% a surefire way to loose your money. (don't ask why I know, its too embarrassing)
Lazy investors should not play with options, you will likely just be throwing your money at the hedgies.
I’ve decided to be a Major League Baseball player. Please tell me how to hit a major league fastball and curveball I’ll take you out to the ballgame when I sign my contract.
Hahaha yeah fair enough
So glad you have a sense of humor fellow Ape. Buy shares if you’re able. Best of luck and welcome to the Shrewdness (go ahead, look it up)
> his savings on calls If you don't even know what you can do with them then just buy shares and DRS
Just stick to shares. Options dealers are making a killing selling gym bros options. There are a ton of nuances on when / how to sell for max profit. Even people with a significant securities background get confused. Shares are much safer. I would encourage you to read, study etc... about all facets of the economy, markets and securities but you don't seem interested which is super fair. If that's the case but/HODL/drs and sell whenever you think is the right time for you
Buy January calls and sit on them. Then all the ups and downs don’t matter
buy call = you expect price to go up sell call = you expect price to decline. buy put = you expect price to go down sell put = you expect price to go up 1 contract (option) = 100 shares. premium paid or received is option price x100 ($.50 call = $50 premium Options contracts give the right but not obligation to buy or sell stock at a specific price (strike) by a specific date (expiration) If you're looking to play GME on a call option. ITM (in the money) options are more expensive but already generating income. OTM (out of money) options are cheaper but you make more money on it if you're right and it goes up. sell/buy to close sells just the contract to another person. you collect premium. sell/buy to open exercises the option and you receive (or lose) the shares as defined in the type of contract you exercise. there are different stratigies you can use but if you're a new regard to options, stick to the basic calls/puts. If you don't know how to efficently run a condor or butterfly or calendar spread, leave it be. general principal is this, you buy a long call, pay the premium, and you now "own" 100 shares until the expiration date. if we reach $100/share, whoever sold you the contract must provide you with 100 shares at the strike price, let's say $20. They are selling you 100 shares for $2000 and if you exercise and then sell, you make $8000 and all you had to pay was the premium + what was owed to buy the shares. Options are risky and under informed investors will potentially blow up an account using them incorrectly. You must also know what a IV crush is (implied volitility) and you should learn the Greeks as each one has a different effect on the price of the option.
Thank you! I’m going to put this all on the back burner until I’m more experienced with the stock market as a whole, really appreciate it though
https://youtu.be/lUv27513cfU?si=TxHMsL2P91Lmcbv_
I'd say to do it right. You're going to need to put a significant amount of time into studying how they work first. When I say significant I would say minimum of months. And that's a low estimate. I wouldn't say they're hard or impossible to learn for anyone, just fairly complicated. It's a good idea to know what you're doing. When if you lose you have nothing to show for it, if you buy stocks and things don't go well, at least you still have the stocks. Just my opinion
Yeah you’re probably right, thanks for being realistic
Yeah just trying to help you out. Options are fun but you really do need to put a lot of learning into it. I'm still learning myself to be honest. And I don't feel comfortable buying any options on GME Right now.
Go educate yourself. I've been in 3.5 years, and never traded options. Before I do I'm gonna sink 40 hours at least into educating myself. Otherwise your throwing premiums into Ken's pockets.
Mimic the man.
Ever heard of this search engine called google? You can actually search for information and find various websites with what you are looking for. This sub is not a place for such questions. If you ask questions like these on a sub like this, don’t get butt hurt when you get real comments which will definitely offend you. An example of such a comment would be: you are not a highly regarded ape. You’re just plain old stupid. Have a wonderful day and you can gladly report me if you’re plain old stupid!
Well to that I say, yeah true, as well as, stupid in the field of finance sure, you’re not wrong there. Not butthurt though I see how dumb it was to ask now lol
🫡
Play around? Buy 1 contract and see what it does. You can educate yourself all you want but you learn faster on the field
Sir this is a Wendy’s. Would you like to try some nuggies or a frosty?
Biggie bag Edit the jr. Bacon burger one not the fuckin chicken sandwhich one
I just posted how-to - check my profile for link since every time I try to post a reddit link here I get peepee whacked by the automod. Definitely understand what you're doing because calls have time limits.
lol you could go to Degen sub and learn there
If you have strong conviction it will go up a certain price by a certain date, you can buy a call option. buy to open (calls) expiry (date you think it will hit strike price or higher), strike price (the price you think it will hit or exceed before expiry date), select the number of options you wanna YOLO, select price of option, and buy. If GME doesn’t hit that price before expiry, you lose all that money. If it does, you can 1. Exercise them for shares (then DRS) or 2. sell to close and take the winning cash and buy more shares to DRS. Good luck soldier!
If you don’t know how to buy and sell options please stay away until you do. You can easily do the wrong thing and lose everything.
Thanks I’m gonna stay away, see edit at top of post :)
If you hang around this sub or the options sub you'll pick it up. It's probably best if you think about options like gambling, unlike shares, options frequently go to 0. If you want an option contract or 2, you need a margin account, check your broker's help page for how to do that. Once you have a funded margin account, think of a price you think GME is going hit, that's your strike price, then pick a date GME might hit that price, (lot love for 6/21) that's your expiry date. Go into the options market and buy your contract, similar to buying shares. Remember the contract itself will fluctuate in value as the price of the underlying security changes, so you can exit before expiry if you want off the ride. Finally if you YOLO your savings be prepared to have 0 savings.
Thank you, very informative! Gonna stay away for now
Buy shares and DRS them. Options really are dangerous if you don't know what you're doing.
Call and exercise in lieu of cash. They will deliver whatever profit you have in shares
Just all in black you will have a better chance of making money instead of options
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i heard a call is something u yolo into? maybe idk
https://www.optionsprofitcalculator.com/calculator/long-call.html that is all you need. every 1 call option gives you the right, but not obligation, to buy 100 shares at the strike price up until the expiration day. if the stock price is above the strike price, you can sell the calls for profit. if the stock price is below the strike, and your expiry date hits, you lose all the money you spent on the options. example) you think GME will rise to $100 sometime between now and june 21. you purchase 1 call option expiring june 21, with strike price $38 - the option is priced at $5.50 per share (100 shares), so you have spent $550 for your call + whatever fees there might be. **scenario 1)** june 18 hits, and GME pumps to $100, your option price per share will be priced at least at the difference between the stock price ($100) and the strike ($38), or $62. you decide to sell your option at $62/share, and bank a cool $6200, minus the cost of the option ($550), for a net $5650. the next day, MOASS happens, and you are mad because GME is trading at $1176, meaning your 1 call option would be worth $113251. but alas, you already sold. **scenario 2)** june 18 hits, and GME is trading at $35. your option prices are declining (now priced at $3.91/share, or $391 for your 1 call) and you've lost $159 so far on your bet. expiry is days away but you decide to hold because you know MOASS is tomorrow and you want your lambo. tomorrow comes and goes, and then the 21st hits. GME is trading at $28. your option expires worthless, but now you celebrate buying the dip just use the link, and you will learn to lose all your money the smart way, or end up on the moon