Say I'm holding on to stocks that I expect to go up, and they start dropping. Can't I just buy puts to profit and balance out my loss on the % lost on the stocks ?
Example,
1000 Shares of $AMD @28
and its dropping to 30 with PUTS @32
Wouldn't I be profiting while holding onto my own shares ?
TDLR: lost 50% of my account to spy 300 calls exp. 25 OCT
Posted Oct 24, 2019, 3:31 AM UTC
Congrats! You’ve won the game. You have ascended from using options like a POS degenerate to using them like a smart investor. Hedging is for pussies but nobody said it was dumb.
so thats what hedging is, damn. I feel like warrant buffet got me all hungry
You're in the big league now :)
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How does 28 drop to 30 or am I the retarded one
the market hit me with a reverse uno card
You must play uno a lot. Or at least a shit ton more than the rest of us. That's like the 3rd uno reference. That's a high ratio.
life is a big game of never ending uno, once you can play your cards right you win at life like a big uno play for real.
Life for me is a game of UNO where everyone else has a hand of +4s and my dumb ass is sitting there with nothing but numbers.
You sound like a newbie so I'll let it slide this time but the technical term is *stonk.
Good luck, dude 👍🏼
Next step, box spreads
just looked into that, why is everyone not doing this ?!
Sounds like a question for 1R0NYMAN
You should totally do it.
Sure, you can also buy puts and just let them expire worthless like the bears do.
my biggest play was a bear play, why the hate. Can't you buy puts and calls and have them cancel each other out, with one play being slightly higher taking on little profit / loss?
No hate. Just humor friend. You’ve gotta have one in this twitter fueled market.
A straddle? Or maybe a strangle?
Covered calls
Literally cannot go tits up.
How did you lose 50% of your account on SPY 300 calls that havent expired yet? SPY is over 300
I sold back contracts that I bought for 1.58 @ 1.15, I went pussy mode on dem shits. Didn't wanna get hit with whatever tf a theta is, right now its sitting at 1.05.
Your TLDR should just say Weak Hands
my broker literally called me and asked me if I know what I'm doing LOLL. I should've stuck with bear gang tbh.
Your broker is lol’ing - you do realize amazon is reporting tomorrow? SPY could be ATH friday
Must we do all your research for you?
spotify:track:6iXs2wDueCwp775UijmpuW
not sure if you're serious.. but in case you are - theta = time decay. options close to expiry are less valuable because they are riskier. so if you buy an option that isn't close to expiry, it's going to slowly lose value as it gets closer and closer to expiring. if you buy an option contract you can look at the theta - it's under 'the greeks'. it'll be a number like -0.04. this is how much value it's going to lose overnight from time decay. so if your 300c is sitting at 1.05 and you see the theta is -0.35, you can know that time decay is going to take the value down to roughly .70 the next day even if all of the other conditions remain the same. theta man, it'll getcha
they dont make an ointment for that burn
Holding both spy calls and puts right now. I don’t care what it does just hope it doesn’t stay flat
may Spy be volatile and fluxing af
Buddy, you came to the wrong place in search of hedging and proper risk management. You sir need to get out of here asap before these clowns in here tempt you to yolo your account. Run and run fast...
already yolo'd half of it, hedging to get to my starting point.
10/10 Will YOLO again
Ma'am this is a Chipotles.
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This is literally 100% what options were invented for.