Boiler Room: The Official Stock Market Discussion

GoldenGlove

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AMC 6/18 40c bought at 5.55 sold at 9.75

Whew meme stocks
Can you break down this for a noob?

What does this mean? You got 40 contracts of AMC for $5.55 that you sold when they hit 9.75, but you would have been able to execute them on 6/18 if the price held up over what amount?

:dwillhuh:
 
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Can you break down this for a noob?

What does this mean? You got 40 contracts of AMC for $5.55 that you sold when they hit 9.75, but you would have been able to execute them on 6/18 if the price held up over what amount?

:dwillhuh:

40 strike. 6/18. It's a short term option which doubled damn near overnight with AMC running from teens to 35+ at open
 

GoldenGlove

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40 strike. 6/18. It's a short term option which doubled damn near overnight with AMC running from teens to 35+ at open
Ok, so the closer it gets to the strike price prior to the option date the more money you make, and if it exceeds 40 before that date the return is even crazier? Excuse my ignorance, I see posts with this in there and I only vaguely understand wtf I'm reading.
 
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Ok, so the closer it gets to the strike price prior to the option date the more money you make, and it it exceeds 40 before that date the return is even crazier? Excuse my ignorance, I see posts with this in there and I only vaguely understand wtf I'm reading.

That's the gist of it yes. There's more to it, options are dangerous but I only mess with companies and their price targets that I'm familiar with
 

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innovation never stops. Legacy auto will get left behind if they aren’t able to adjust.



CNBC with rare positive Tesla coverage?
 
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SithLawd

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Can you break down this for a noob?

What does this mean? You got 40 contracts of AMC for $5.55 that you sold when they hit 9.75, but you would have been able to execute them on 6/18 if the price held up over what amount?

:dwillhuh:
40c (call) means he can buy the stock at anytime between now and 6/18 for $40 a share. For this privilege he agreed to pay an up front cost of $5.55 per share (the premium).

If amc were to get to say $100 before 6/18 he can exercise the contract and make $60 (100-40) at a cost of $5.55.

He can also trade the contract itself.

the premium is now $9.75 for this contract so he can resell the contract and make $4.2 (9.75-5.55)
This is all per share and a single contract is 100 shares.
 

GoldenGlove

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With how bullish this thread is on SoFi, do y'all actually use the app and their services?
 
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