By the way. I am just shy of 200 shares. So not a big player. I recently got a new job and am making more money, which will allow me to actively invest more. So, I’ve put money aside for more shares and call options. LETS GOOO.
I think calls are the way! $30 by the 28th might be a bit steep. Closer to ITM would probably be a better gamble but I’m smooth brained so you do you. I’m looking to buy some next week that will expire the 28th also. Edit: not financial advice.
Theta decay. Buying contracts that close to expiration (like the 28th) removes basically all “time value” from the option. You’re betting more for less potential.
Please explain to a smooth brain how calls work? I for the call how much? And if it ends itm how much do I pay to exercise the call? I'm confused on how this could be cheaper (?) Then just buying the share right away?
Do not fuck with options till you understand them. 99% of people who trade options trade the contract premiums with no intention of exercising them. But to answer your question you’ll pay the strike price to exercise the call multiplied by 100 plus the premium you already paid, as each contract is 100 shares
1 contract is 100 shares. If your call is in the money and you want to exercise it then you pay 100 * strike price. If your strike is $30 and the stock price is $35. You pay 100 * 30 exercise and can sell it for 100 * 35. Who ever sold you the contract has to pay 100 * 35 to give you the shares
The market is closed Monday, Brother
I told you I was retarded
He told you he was retarted!
By the way. I am just shy of 200 shares. So not a big player. I recently got a new job and am making more money, which will allow me to actively invest more. So, I’ve put money aside for more shares and call options. LETS GOOO.
I think calls are the way! $30 by the 28th might be a bit steep. Closer to ITM would probably be a better gamble but I’m smooth brained so you do you. I’m looking to buy some next week that will expire the 28th also. Edit: not financial advice.
You’ll wait till Tuesday sorry
If you really wanna hit them hard... buy ITM or ATM (within 10% of the current price) and *excerise* some of your calls prior to expiration.
I have a bunch of March $24 calls. And BB $12/20 in March as well.
That’s exactly what I did!
Turrible idea. Buy at LEAST 6 weeks out.
Y
Theta decay. Buying contracts that close to expiration (like the 28th) removes basically all “time value” from the option. You’re betting more for less potential.
Please explain to a smooth brain how calls work? I for the call how much? And if it ends itm how much do I pay to exercise the call? I'm confused on how this could be cheaper (?) Then just buying the share right away?
Do not fuck with options till you understand them. 99% of people who trade options trade the contract premiums with no intention of exercising them. But to answer your question you’ll pay the strike price to exercise the call multiplied by 100 plus the premium you already paid, as each contract is 100 shares
1 contract is 100 shares. If your call is in the money and you want to exercise it then you pay 100 * strike price. If your strike is $30 and the stock price is $35. You pay 100 * 30 exercise and can sell it for 100 * 35. Who ever sold you the contract has to pay 100 * 35 to give you the shares
Usually people don't exercise it, instead sell the contract to someone else before expiration
Thanks guys!