Boiler Room: The Official Stock Market Discussion

Da_Eggman

Da_Eggman

Can't trust every face you gotta watch em
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Scholar said:
Stock: PLAY (Dave & Busters) - 13.58

Earnings Date: Tues., June 9th

So what I'm saying is I expect the price of PLAY to drop when they reveal their earnings next Tuesday. Let's say I expect the stock to drop beneath $10. I could buy a put at a strike price of $10 expiring next Friday, June 9th (or whenever in the future).

A $10 put option expiring 6/9 cost .33. Whenever you buy an option contract though you buy 100 at a time. So the true cost would be .33 x 100 ($33 per contract).

In order for this to be profitable for me I need PLAY to be < 10 - Price of option contract .33 (9.67). I use this to quickly find out how much I can make: Long put calculator: Purchase put options

Pro
-You can make quick large returns. If i put up 2k for a $10 put and the price falls to $8 I would make at-least $10k

Cons
-I could lose all the money I invested (2k) if PLAY stays above $10.
-Buying options leading up to or during a earnings week is more expensive. People expect a move up or down so options are more expensive


Doomsday is saying a bit of the opposite. He is saying I should sell puts. Basically, he expects the price of PLAY not to drop beneath $7.5.
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Def don’t see it going below ten I think the bad earnings will be priced in imo
 
Scholar

Scholar

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Da_Eggman said:
Def don’t see it going below ten I think the bad earnings will be priced in imo
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It's on the verge of bankruptcy. Was sub 10 two weeks ago. I think the earnings are going to be so a shyt storm. They are reporting from Feb to May, full rona season.
 
Regular_P

Regular_P

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Tommy Fits said:
Trump declares martial law.... Market goes up 500 points. Just wait to the bodies hit the floor maybe we can hit 1000. 40; million unemployed, businesses still not open, people not paying rent/mortgage, and the country is literally burning down. The market is through the roof, someone explain this to me, what am I missing
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P

Pyrexcup

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Tommy Fits said:
Trump declares martial law.... Market goes up 500 points. Just wait to the bodies hit the floor maybe we can hit 1000. 40; million unemployed, businesses still not open, people not paying rent/mortgage, and the country is literally burning down. The market is through the roof, someone explain this to me, what am I missing
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bu but but its priced in if you missed the the dip in March your loss, there wont be another one :troll:
 
Idaeo

Idaeo

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SSL is trending towards its pre-COVID level. i'm up 30% since Friday

it was at $21 in Jan....currently at $6
 
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