All things STOCKS

#3,982
#3,982
Carp said:
Damn, how low can SAVE go? Already fell past 16.00.
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I’d imagine 12’s would be the floor. I’d be surprised to see it that low, but it’s possible. Would probably ignite a buying frenzy and send back to $25.
 
#3,984
#3,984
VolAllen said:
I’d imagine 12’s would be the floor. I’d be surprised to see it that low, but it’s possible. Would probably ignite a buying frenzy and send back to $25.
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How many shares are you holding these days?
 
#3,986
#3,986
mr.checkerboards said:
Does anyone in here short stocks? Dont think im going to do it, just have been doing my research into it. Seems very dangerous and not something someone at my level of experience should do.
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If you're shorting a stock your loss potential is technically unlimited. If I thought a stock was going down, I'd be more likely to buy PUT options so that your potential loss is capped.
 
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#3,990
#3,990
Freak said:
If you're shorting a stock your loss potential is technically unlimited. If I thought a stock was going down, I'd be more likely to buy PUT options so that your potential loss is capped.
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Sorry, I should've been more specific, PUT/CALL on Robinhood was what I was looking at.
So lets say I PUT IDEX today at 1.50. It then goes down to 1.25 and I sell my put. I then get paid for my stock like it cost 1.50 correct?
 
#3,991
#3,991
mr.checkerboards said:
Sorry, I should've been more specific, PUT/CALL on Robinhood was what I was looking at.
So lets say I PUT IDEX today at 1.50. It then goes down to 1.25 and I sell my put. I then get paid for my stock like it cost 1.50 correct?
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I'm not sure I'm following your example. But buying one PUT contract gives you the option, but not the obligation, to sell 100 shares of the stock at the specified strike price, within a specified period of time.
 
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#3,993
#3,993
Freak said:
I'm not sure I'm following your example. But buying one PUT contract gives you the option, but not the obligation, to sell 100 shares of the stock at the specified strike price, within a specified period of time.
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I dont understand my example either anymore. I just read an article about strike price which I was ignoring in my example. I understand it better now.
 
#3,994
#3,994
mr.checkerboards said:
Sorry, I should've been more specific, PUT/CALL on Robinhood was what I was looking at.
So lets say I PUT IDEX today at 1.50. It then goes down to 1.25 and I sell my put. I then get paid for my stock like it cost 1.50 correct?
Click to expand...

The pricing of options is pretty much correct. So when you sell a put, the price depends on what people think the odds are the put will be worth later, when it expires. It always should be worth more than you'd get if you exercised it right then. Otherwise, that's what would happen, right then. Fundamentally, if you let it expire, then you can make somebody buy IDEX for $1.50. You have to buy IDEX or the broker will do it for you. If you sell the put, the price will reflect what people think might happen later. What you need to do is just watch one. I actually bought one and then watched it. More motivation that way. Just buy one for $100 instead of $10,000.

Extra info: Bid/ask spreads on options are pretty big. Look at 'em. Options are just gambling, and it seems to me like the house is taking quite a bit.

Extra Extra info: The options market is just a few people on some stocks and ETF's. Don't put in a market order.
 
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#3,995
#3,995
Firebirdparts said:
The pricing of options is pretty much correct. So when you sell a put, the price depends on what people think the odds are the put will be worth later, when it expires. It always should be worth more than you'd get if you exercised it right then. Otherwise, that's what would happen, right then. Fundamentally, if you let it expire, then you can make somebody buy IDEX for $1.50. You have to buy IDEX or the broker will do it for you. If you sell the put, the price will reflect what people think might happen later. What you need to do is just watch one. I actually bought one and then watched it. More motivation that way. Just buy one for $100 instead of $10,000.

Extra info: Bid/ask spreads on options are pretty big. Look at 'em. Options are just gambling, and it seems to me like the house is taking quite a bit.

Extra Extra info: The options market is just a few people on some stocks and ETF's. Don't put in a market order.
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On RH I can't do spreads yet, it said my account needed to do more options before granting me access. But thanks, the more I read into them the more I understand it, im just scared as hell I would lose my ass of doing that. Ive just been reading a lot about it lately and never really understood it so I figured id dive in and try to learn.
 
#3,997
#3,997
Freak said:
Nice. Good luck. I see earnings are coming up soon.
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Yea I think 7/22. I believe bad earnings reports are a given right now, so that’s probably baked in. However, I’ve never seen a stock not pop a week or so before earnings, so I’ll probably exit then and watch for re entry.
 
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