Boiler Room: The Official Stock Market Discussion

[Software]

im sure this has been asked before, but can someone explain calls and puts like I am 5 years old? I see a good amount of people in here saying they missed out on some good money on puts with the market falling, and I want to be in the know for future investing. Its the one thing I cant seem to grasp.

Can someone give an example with actual pricing/figures? How much does it cost to put in a call/put option, etc?

Check out some YouTube videos on options. I'd set aside a little bit of play money to play with them once felt like understood them before actually trying a real market play. They can be very risky and will make you broke if you don't know what you're doing.

 

[Rickdogg44]

im sure this has been asked before, but can someone explain calls and puts like I am 5 years old? I see a good amount of people in here saying they missed out on some good money on puts with the market falling, and I want to be in the know for future investing. Its the one thing I cant seem to grasp.

Can someone give an example with actual pricing/figures? How much does it cost to put in a call/put option, etc?

Best video in my opinion esp his "house example "


Buying call - gives you the right to buy 100 shares at that strike by certain date

I'll use Apple $170 , February 18th expiration. Call.

Currently going for $3.55 aka $355 since options are in x100.

At 18th of February you need apple to be above 173.55 to make money.

Between now and then the call will fluctuate based on the greeks. And you can sell for profit.

Buying puts are opposite of calls

 

[FreshFromATL]

This market is

 

[dora_da_destroyer]

stock market iPod playlist

 

[dora_da_destroyer]

Best video in my opinion esp his "house example "


Buying call - gives you the right to buy 100 shares at that strike by certain date

I'll use Apple $170 , February 18th expiration. Call.

Currently going for $3.55 aka $355 since options are in x100.

At 18th of February you need apple to be above 173.55 to make money.

Between now and then the call will fluctuate based on the greeks. And you can sell for profit.

Buying puts are opposite of calls

can you buy/sell anytime or does there need to be a buyer for what you're selling or it won't go through?

 

[Rickdogg44]

can you buy/sell anytime or does there need to be a buyer for what you're selling or it won't go through?

You can buy/sell anytime just need to watch for open interest and volume for better spreads when trying to execute

 

[Slim]

im sure this has been asked before, but can someone explain calls and puts like I am 5 years old? I see a good amount of people in here saying they missed out on some good money on puts with the market falling, and I want to be in the know for future investing. Its the one thing I cant seem to grasp.

Can someone give an example with actual pricing/figures? How much does it cost to put in a call/put option, etc?

In addition to the the other posters videos and explanations, I'd recommend starting off doing some paper trades on ThinkorSwim (or any other decent brokerage). So you get a hang of the mechanics.

Like anything else in investing/finance, it's about risk v reward. Options can be lucrative but you can also lose your shirt.

 

[chineebai]

Worried about inflation? Here's how investments did in the 1970s

Why do energy matter in a time like this and in the 70s? dividends and p/e

 

[Da_Eggman]

Drinking has helped me a lot

 

[Macallik86]

glad i put 80% of my 401k in the new year on mostly bond funds, only down a tiny bit. will shift when time is right.
trading account still all cash. key levels for QQQ is 355 for support. 14500 on the NQ.

might consider some qqq calls at 355 for a quick quick play like 5% ill be happy with, not trading advice.

All the way down to $352 (July support) or $350 (October Support) I'll be watching this area for a potential dead cat bounce myself.I probably wouldn't trust any rallies longer than a week at this point

 

[Silky Johnson]

Got stopped out my VOO position this morning when that bytch crossed the 220sma for like 5 mins

How far below the 200day sma would yall set a stop loss?

 

[humminbird]

there's a lot of weird option activity going on with Viacom
it looks like maybe it would go up but I'm not so sure since it's been downtrodden for a full year at this point

 

[dora_da_destroyer]

Got stopped out my VOO position this morning when that bytch crossed the 220sma for like 5 mins

How far below the 200day sma would yall set a stop loss?

why you got stop losses on an index fund? you trading VOO?

 

[Silky Johnson]

why you got stop losses on an index fund? you trading VOO?

I don't trade out of that one. It's for my dividends/long term investments. Basically using it as a savings account

 

[chineebai]

XOM is a great company, financial wise, can't say the same for their actual business. Good long term name to invest in IMO.