OFFICIAL STOCK MARKET AND ECONOMY THREAD VOL. A NEW CHAPTER

[Betonblck]

Bruhhhhh do y’all see Tilray

Tilray is ridiculous. Just going parabolic. This looks like it could go to $150-200 by October 17th, but after it'll probably go back to $50.

 

[southernhospita]

Expires worthless. If it hits $12 tomorrow you can sell the option for probably a buck or two but if you hold it till expiration and it’s still at 12 it’ll be borderline worthless. Intrinsic value = the difference between stock price (if above your strike) and your strike. Extrinsic value is more complicated but based on time and volatility.

I understand that it would be worthless if it expires so I know that it should be sold before that date

What I’m asking is
Say that you call order was a total of $93
If you call expires do you lose that $93
Since you call is worthless now

 

[johnnyredstorm]

Yep

 

[southernhospita]

They are not trying to honor my options order for AMD I’m calling it at $40 by Oct 12


So I changed it to $43 by Oct 12 it’s under placed so I’ll see


I’m going reverse on SNAP for under $8.50 by Oct 12

 

[tkthafm]

Anyone trade futures here ?

I've started trading NQ futures this week with some success.

 

[jrod54life]

all signs are pointing to me wanting to send a couple hundreds to AMD

 

[noskey]

Anyone trade futures here ?

I've started trading NQ futures this week with some success.

I traded with a team in college for the CME trading challenge one year. Super stressful and that was without my own money on the line. Tracking oil and gold futures was a pain in the *** and having to be plugged in 24/7 sucked since I was a full time student and worked 45 hours a week. But my team finishing in the top 20% in the world was cool

 

[noskey]

To anyone who wants to trade options, and has no formal education in finance, PLEASE read as much as you can before trading blindly. Investopedia is a good starting point. Watch YouTube videos.

Options can be messy and drain your cash fast if you dont know what risks you're looking at. It's not as easy as buying a strangle spread and hoping the stock fluctuates one way or another, or buying a call before earnings.

 

[dragonnife]

all signs are pointing to me wanting to send a couple hundreds to AMD

I got in when it was 9. I been hesitating since it was at 20. I’m considering dropping for another 100 shares.

 

[jrod54life]

I got in when it was 9. I been hesitating since it was at 20. I’m considering dropping for another 100 shares.

damnnnn thats a good come up but i can see it going even higher

 

[pdino]

AMD at 16$ and tilray at 43$ all I got. 0 diversity

 

[dragonnife]

damnnnn thats a good come up but i can see it going even higher

I took huge losses. I’m hoping this Amd just breaks me even. I actually reached out to a friend who I used to work with to invest in mutual funds. Does anybody know why we can’t purchase any mutual funds through robinhood?

 

[jrod54life]

AMD at 16$ and tilray at 43$ all I got. 0 diversity

looks like fanduel wasnt the only thing u flourishing in

 

[johnnyredstorm]

They are not trying to honor my options order for AMD I’m calling it at $40 by Oct 12


So I changed it to $43 by Oct 12 it’s under placed so I’ll see


I’m going reverse on SNAP for under $8.50 by Oct 12

Gonna be honest you probably aren’t hitting $43 in amd by then. If you take the at the money straddle (the prices of the call + put) you have a $6 move being priced in for either direction. My recommendation is either you take profits before expiration if it hits $36, or for the future you buy at the money or in the money options so you can collect deltas. Out of the money options should be utilized primarily for shorter term trades. That’s where you’ll get he highest percentage increase. For example, I love to see what a stock’s atr is and if on average it moves between $1 and $2 I’ll look to buy a weekly option for a day trade or short swing (1-2 days, time decay will kill you otherwise) either .50 or a $1 out of the money and hope it goes into the money. That’s when you can see a .30 contract go to 1.50 and make you a ton of money on a little risk.

 

[southernhospita]

Gonna be honest you probably aren’t hitting $43 in amd by then. If you take the at the money straddle (the prices of the call + put) you have a $6 move being priced in for either direction. My recommendation is either you take profits before expiration if it hits $36, or for the future you buy at the money or in the money options so you can collect deltas. Out of the money options should be utilized primarily for shorter term trades. That’s where you’ll get he highest percentage increase. For example, I love to see what a stock’s atr is and if on average it moves between $1 and $2 I’ll look to buy a weekly option for a day trade or short swing (1-2 days, time decay will kill you otherwise) either .50 or a $1 out of the money and hope it goes into the money. That’s when you can see a .30 contract go to 1.50 and make you a ton of money on a little risk.

Yeah I did that with Snap and I Saw it go down .2 and they had me up $2
But I had the put at $8.5 by oct 12

This is where my options are currently sitting at
When Snap was in the +$2 range I was wondering does that mean some profit was made even without it being below the $8.5 range that I made for it
I don’t have any problem loosing this $100 if it mean I learn something a long the way and as far as spread sheets Robin Hood has them available but they request more experience I have seen some video say that I should stay right in the money it was even some that was already below the current price (which I’m sure you already know that’s a thing just mentioning it)
Does that count as profit is you make a put order that already below the share price

 

[johnnyredstorm]

You can make money as long as the stock goes down after the put was bought. As long as you aren’t at expiration, there will be extrinsic value. But the more you hold an option out of the money, the more you become vulnerable to time decay. So if you’re thinking short term, you can make good money otm. Long term, you need deltas.

 

[southernhospita]

You can make money as long as the stock goes down after the put was bought. As long as you aren’t at expiration, there will be extrinsic value. But the more you hold an option out of the money, the more you become vulnerable to time decay. So if you’re thinking short term, you can make good money otm. Long term, you need deltas.

Alright we will touch back on this tomorrow morning hopefully

 

[southernhospita]

You can make money as long as the stock goes down after the put was bought. As long as you aren’t at expiration, there will be extrinsic value. But the more you hold an option out of the money, the more you become vulnerable to time decay. So if you’re thinking short term, you can make good money otm. Long term, you need deltas.

I did one with Pier 1 this morning that was in the money
Is this what I’m supposed to be looking for

 

[johnnyredstorm]

Delta is basically intrinsic value. So if you buy a $5 put and the stick goes to $3 your option is guaranteed to be worth at least $2. It could be worth more if time and volatility are on your side.

 

[southernhospita]

I think trading options have a lot of potential but you should have a limit on how much to spend
I don’t think anyone need to have option contracts as 100% of their portfolio
I think options beat out stock trades due to the potential gains

And stock trading beats out options because time is not a factor and more money can got into it



I never understood how some say you won’t become rich off the stock market I think some people take their experience with it and automatically make it law as if everyone makes the same moves I think with the right moves and good money management skills (let’s not forget paying you taxes) you can do well at this

I was talking to a older investor at work and he told me you can make tons of money with doing options and why did I wait so long to try to learn it

 

[johnnyredstorm]

It’s easy to trade when you’re not putting serious money on the line but the minute you size up and you aren’t ready for it, that’s when the trouble hits. You need to have a clear process with well defined rules that you follow. It’s very easy to get overwhelmed and emotional when you have 50k on the line for a single trade.

 

[Betonblck]

I think trading options have a lot of potential but you should have a limit on how much to spend
I don’t think anyone need to have option contracts as 100% of their portfolio
I think options beat out stock trades due to the potential gains

And stock trading beats out options because time is not a factor and more money can got into it



I never understood how some say you won’t become rich off the stock market I think some people take their experience with it and automatically make it law as if everyone makes the same moves I think with the right moves and good money management skills (let’s not forget paying you taxes) you can do well at this

I was talking to a older investor at work and he told me you can make tons of money with doing options and why did I wait so long to try to learn it

Well there is no easy way to become rich. You can grow your money in the stock market but to think that you will become rich off the the stock market by beating professionals and computers while you only devote your time on the side requires some special skills. Most professional investment managers can't beat an index fund. So to think that most people can not only beat the market but beat the market by so much that they can become rich is borderline crazy talk.

I don't deny that there are talented people out there that can beat the market but sometimes people confuse luck with skill. Getting rich off the stock market requires a lot of luck and taking some very risky bets. There are people that got rich off of bitcoin, that took on a very risky investment when other previously created cryptocurrencies went worthless. So becoming rich from investing happens. Becoming rich by consistently beating professional and computer trading is probably on some .00001% of all traders can do.

Happy Investing.

 

[southernhospita]

Well there is no easy way to become rich. You can grow your money in the stock market but to think that you will become rich off the the stock market by beating professionals and computers while you only devote your time on the side requires some special skills. Most professional investment managers can't beat an index fund. So to think that most people can not only beat the market but beat the market by so much that they can become rich is borderline crazy talk.

I don't deny that there are talented people out there that can beat the market but sometimes people confuse luck with skill. Getting rich off the stock market requires a lot of luck and taking some very risky bets. There are people that got rich off of bitcoin, that took on a very risky investment when other previously created cryptocurrencies went worthless. So becoming rich from investing happens. Becoming rich by consistently beating professional and computer trading is probably on some .00001% of all traders can do.

Happy Investing.

I don’t believe that though I think making the right moves having a limit and knowing to cut your losses early can definitely get you there especially if you put money in at a routine basis
And the term rich is always subjective
I know of some stock traders that bring in 200k at a quarterly basis

It all depends on you moves
Do you take your capital gains or do you reinvest into something else to make more
Do you buy before the dividend is announced so you can get that a hope for it or go up so you can take that as well
What’s you target % for gains
It’s plenty of factors that go into it
No ones experience is the same but I’m s believe that it can be done
If you can build you portfolio to 10k of your own money and flip it 100% even if it takes a year it can be done

 

[johnnyredstorm]

I know plenty of day traders who make 1-10k on a daily basis. The result of developing a process and sticking to your plan.

I also know plenty of people who have blown up their account, myself included, because hey didn’t follow their rules and let emotions run their trades.

 

[Betonblck]

I don’t believe that though I think making the right moves having a limit and knowing to cut your losses early can definitely get you there especially if you put money in at a routine basis
And the term rich is always subjective
I know of some stock traders that bring in 200k at a quarterly basis

It all depends on you moves
Do you take your capital gains or do you reinvest into something else to make more
Do you buy before the dividend is announced so you can get that a hope for it or go up so you can take that as well
What’s you target % for gains
It’s plenty of factors that go into it
No ones experience is the same but I’m s believe that it can be done
If you can build you portfolio to 10k of your own money and flip it 100% even if it takes a year it can be done

Believe in yourself and there are no limits. Keep on learning about the market and just make sure not to put in more than you can afford to lose.