I'm retarded so don't be mean. But what should place as strike price in a put option? The current price? Lower/higher than current?
Ryder Lopez
Completely depends on your risk tolerance
Austin Lee
Haven't lost on one yet ;)
Brody Evans
don't buy options newfriend.
Cameron Green
Isn't the risk limited to the price of the options? As in, maximum loss is letting the options expire. Explain further on what should I take into account when making a put, please.
Sebastian Gomez
To elaborate, a put that is higher than the strike price will have a higher premium, its value will be derived from it's distance from current price, rate of change of price, distance from expiration date and volatility. Ideally you want to use a pricing model such as Black scholes and determine target prices for your chosen expiration date, and search for value depending on your investment strategy.
Otherwise, if you are just gambling, have a budget in mind that you are willing to risk and shop the spreads for something in your price range.
Absolute newfriend with no experience at all in the stock market but with the recent world events are these days getting good to invest or should I wait more?
Leo Bennett
if he's asking those questions he sure as shit shouldn't be, but keep being a smug ass.
t. 40% SQQQ calls
Daniel Morris
Get SPY $280 Buy it on the end of day when market is up (monday) That way IV will be crushed and you will get them cheaply. And don't hold till expiry, if you think market will rebound and your options are not ITM, you can still sell it at profit.
Lincoln Harris
wait 4-8 more months
Evan Hernandez
tldr: if you're new to options stick with strike prices as close to current price as possible.
The further away from the current price the lower the volume, more money you'll waste from the bid/ask spread, and the harder it will be to exit the position if it goes out of the money.
If you are new to options, be sure to stick to: 1. Monthly option strike dates like Mar 20, Apr 17. There are "weekly" dates but those are terrible for newbies. 2. Stick with LARGE companies or funds, like SPY and AAPL and NKE. Even medium-large companies can have low volume and you'll find it very difficult to enter and exit options at reasonable prices. 3. As for the strike price, like you asked, the further you get from the option the cheaper each contract is but also the more money you stand to make if the price goes your way.
main issue with options is that they're actually great if used for their intended purpose (as a form of "insurance", as a way to hedge your bets, as a way to bet on volatility instead of direction of price, etc) but too many faggots use them as a form of super leverage and so when they're wrong they get crushed financially, instantly. WSB syndrome, basically. probably not a lot of noobs asking about options who want to write covered calls for example, they want to turn $70k into $1.5 million.
Isaiah Wood
>t. 40% SQQQ calls Damn, it's like I'm talking to a little girl.
>going all in all airline stocks How insanely brilliant or dumb is this
Kayden Hill
If you buy now dont sell the second you are in the red because it will happen. If you just planning on hopping in and holding long term you should be fine.
Austin Allen
I know I know. They say you can't get rich quick on the stock market
but if you could... what would I buy tomorrow morning?
Aiden Gutierrez
I
Alexander Ortiz
He has long since fled this place after so many people were mean to him all the time.
Christopher Nelson
jun 2021 calls on most stuff heavily affected by corona panic seems like easy money
Josiah Jackson
SNSS based user
Aaron James
Buy a gun and shoot yourself tbqh
William Myers
Don't all in yet. If you're going to buy stocks, DCA your way in
Christopher Diaz
don't be like that bby
Ayden Rogers
depends on too many factors. I think anyone here would agree it probably goes up in the long 5-10+ year time frame. So with that reasoning it's a buy.
On the bad side it's probably going to be heavily effected by the pandemic.
So what your question actually is, how bad will the pandemic be, will the airlines receive bail outs, and is this a good price based on every factor
Then we have to determine your risk levels, goals, portfolio strategy, and how you will handle losing 40% of your portfolio value if things worsen, will you sell? Will you ignore your portfolio for 5 years?
If your horizon is 1 day it's very different too.
So in result, fuck off.
Eli Clark
If France is going to have an Italy level outbreak you probably wanna hold off on that for a bit.
Zachary Thomas
sure. . . but they are also a way to obtain a leveraged position with limited downside.
if i buy $250 worth of OTM options, then I only stand to lose the premium of $250 and I don't need to exit the position to pare my losses.
sure, the same can be achieved with a leveraged position and a stop limit order to prevent the leveraged position from eating into the rest of my trading balance.
Caleb Long
I want to build a massive portfolio of dividend stocks over the next 15-20 years. Any suggestions? I think energy/oil will be at great prices soon due to coronavirus plus the ESG fad both of which will fade away.
Oil will die a quick death. Don't follow your strategy if you want to make it
Nicholas Brown
You are next faggot
Brody Taylor
check out the dividend aristocrats if you wanna start with safer choices but i would recommend to wait a bit until the market crash
Landon Green
I just had the most disgusting piece of chocolate cake I have ever tasted AND it came of a flight from Thailand aswell so I probably have Corona now. This saturday sucks
i actually think this is pretty smart considering how likely the federal government is to bailout airlines, banks, and car manufacturers.
the hardest part about entering a position is that the market is completely based on what the federal reserve and fed government decides to do. they could announce some QE any day and change the direction of every stock in the DOW.
Gavin Jones
Based granny knitting that jumper
Bentley Gonzalez
Yes, the coal industry is dying too. Dying for 150 years.
Hunter Thomas
Weekend /smg/ is the worst, kek.
Angel Lee
Reminder to take care of yourselves! You never know, and your loved ones may need you to help taking care of them soon too!
Ackshually, sacre bleu is a French-Canadian expression
If growth continues unabated, this cluster alone may be responsible for 1100 (210, 2800) active infections by March 10 and 2000 (370, 5000) by March 15. 5/7
is there any reason why you wouldn't short sell stocks when the market is obviously crashing? seems to me like free money
Nathan Thompson
World economy will collapse when New York and London go into shut down.
Brody Brooks
Market is not that simple. Kind of is, but not entirely.
Look at last week, overall green. The market is forward projecting and hence will never bottom at the lowest possible short term bottom point you'd expect, because people expect a pop up after and will buy before then.
For this same reasoning it's not easy to predict a bottom from a short term shock to the economic system.
Possibly! Because they're financial centers, you mean? But the banks have been installing cool new equipment and speedy connections in the homes of their employees. They're getting prepared.
And a recent interview with a person from the stock exchange reinforced my understanding that the stock exchanges are now mostly just background for news shows about the market.
also, if you're buying options puts are more expensive than calls at the moment because everyone thinks we going down
Isaiah Ortiz
When the market is this volatile and manipulated why not just open opposing vertical spreads and close each leg when they're profitable? Probably sell premium instead so you can get that sweet inflated premium price too? Like open a OTM put credit spread, and an OTM call credit spread, when the market crashes due to fear, close the call credit spread, when it gets manipulated back up, close the put credit spread. Rinse and repeat at the new price level. Seems like a pretty easy strategy
the short answer is because price doesn't move in a straight line, it moves in waves. so it mostly depends on how much you're willing to let price go up and against you when the overall trend is down, what you'd consider signs of a reversal, etc.
Dylan Davis
Why do you think people are actively trading futures? If the setup is good enough then go for it. The moves in the market are absolutely insane right now though, so.. don't risk too much no matter if you long or short
Michael Collins
Nah. Now it could very easily plunge a good 30% or even a little more from current price due to the conflicts over production among the major oil producing countries and the low demand from wuflu, however, oil is far more important for industry than you think. Hippie tree hugger energy is not ready to replace oil. Not by a long shot and not for decades at least before it even manages to replace 50% of oil required applications.
All that said, if it hits sub $30 this year go all in. ALL IN. WITH LEVERAGE.
True but certain people have to have in person jobs and not only that but the psychological effects of that happening will be insane. No one would keep their money in the stock market if those two cities shut down for over a month.
