State your side hustle

A

AliUK

VIP
416 said:
Those are options sxb. That nigga is basically gambling lol
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How does it work, is thete someone on the other end of that bet, basically saying shares will go down?

Does there have to be a certain increase for this guy to make that?

Plus is there a time deadline fir that increase?
 
416

416

Lmao
AliUK said:
How does it work, is thete someone on the other end of that bet, basically saying shares will go down?

Does there have to be a certain increase for this guy to make that?

Plus is there a time deadline fir that increase?
Click to expand...
The deadline is 3/20/20 but he has the option to buy it before that date.

He bought 446 contracts for around 3 dollars (premium price) a share, and each contract is worth 100 shares.(44600 shares x 3: this is the premium paid)


stock price of Tesla went up, so the premium increased from around 3 to 100.

if the price of the stock would’ve decreased by the expiration date he would’ve lost all his money. So basically he made a risky bet and won.
 
A

AliUK

VIP
416 said:
The deadline is 3/20/20 but he has the option to buy it before that date.

He bought 446 contracts for around 3 dollars (premium price) a share, and each contract is worth 100 shares.(44600 shares x 3: this is the premium paid)


stock price of Tesla went up, so the premium increased from around 3 to 100.

if the price of the stock would’ve decreased by the expiration date he would’ve lost all his money. So basically he made a risky bet and won.
Click to expand...

So does he have to sell the options to someone to make money and what is the incentive for the buyer, is he banking on the options increasing further for him to make money?
 
?????

?????

Professional Attention Provider
I like drawing and will sometimes do small commissions for some cash, but I have been busy lately and unable to find time to sit and draw. Honestly I’m probably most committed to writing fanfiction, been doing it since I was a pre-teen. If I don’t sit and write SOMETHING I think I’ll self-combust. My poor mother will have to scrap my remains of my wall
 
416

416

Lmao
AliUK said:
So does he have to sell the options to someone to make money and what is the incentive for the buyer, is he banking on the options increasing further for him to make money?
Click to expand...
He has to close out his potion before the exp date to reap his profits. What he bought is called a call option. Sxb I think your confusing options to stocks. It’s a whole different ball game. Read this it’s basically a summary to wha a call option is;
https://www.investopedia.com/terms/c/calloption.asp
 
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