OFFICIAL STOCK MARKET AND ECONOMY THREAD VOL. A NEW CHAPTER

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Joined Oct 29, 2002
was only a matter of time before someone started copying my trades in the stock game :lol:
portfolios should really be kept private. just for fun though so no biggie
 
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Joined Apr 4, 2008
I don't see the problem with it at all. Just like real life there should be a sharing of ideas. I personally wasn't aware of the move DRYS made. Doesn't mean I took the trade but I'm glad I was made aware of it.
 
381
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Joined Oct 29, 2002
but if the game is a friendly competition, doesn't sharing ideas defeat the purpose? in real life, there's really no competition so sharing of ideas is welcomed (as a retail investor).

honestly, if someone really wanted to win, they would just short drys for their entire portfolio. also, i don't think the game takes into account reverse splits, or else I'd be up well over 150k

in reality, there's no way a brokerage would have the supply to let me short that many shares of drys lol. i completely understand the unrealistic nature of the game.
 
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The game is as "real" as you make it. And really, I see it as a way of sharing ideas like JRS said. I don't see it as a "every man for themselves" competition. And it's all in good fun.
 
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Joined Nov 17, 2013
but if the game is a friendly competition, doesn't sharing ideas defeat the purpose? in real life, there's really no competition so sharing of ideas is welcomed (as a retail investor).

honestly, if someone really wanted to win, they would just short drys for their entire portfolio. also, i don't think the game takes into account reverse splits, or else I'd be up well over 150k

in reality, there's no way a brokerage would have the supply to let me short that many shares of drys lol. i completely understand the unrealistic nature of the game.
This is a tradition carried from the first game: all portfolios are public and can be viewed by everyone in the game.

It's just a game/idea sharing, fam. Don't get too upset. The prize is a semi-used fleshlight, so how serious do you think this REALLY is?
 
381
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Joined Oct 29, 2002
This is a tradition carried from the first game: all portfolios are public and can be viewed by everyone in the game.

It's just a game/idea sharing, fam. Don't get too upset. The prize is a semi-used fleshlight, so how serious do you think this REALLY is?
im so upset, fam...you have NO idea
 
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Joined Dec 23, 2009
Anyone here invested in vanguard? Read the jcollins blog and dude really vouches for it
Yeah, have my Roth with Vangaurd. Lowest fees for ETFs usually. I'm happy with them, only thing I wish I could do is transfer money to my account with the app, instead of going to my computer to do it.
 
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AAPL blowing all the way up. New 52 wk high if earnings hold til open :pimp:

Up 5.5% right now :x :x Times like these make me wish I still traded options. A strangle spread would have been MONEY.
 
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Joined Oct 4, 2010
I been researching options but I still don't understand exactly how people make 200-500% purchasing them.

Anyone have a video that breaks the details down? I get that options are a contract that you CAN excersize but don't get much passed that.
 
22,340
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Joined Dec 23, 2009
I been researching options but I still don't understand exactly how people make 200-500% purchasing them.

Anyone have a video that breaks the details down? I get that options are a contract that you CAN excersize but don't get much passed that.
I'll try to explain in real life terms.
Imagine there's a house for sale. You can buy that house today for $100. Or, alternatively, you can buy a contract that says you'll buy that house for $105 three months from now.
You sign that contract thinking the price of the house will rise past $105 before the three months pass, but you'll still only pay $105.

You paid $5 for the right to buy the house at $105.

Now, let's assume one month after buying the contract, the house is worth $115. You can exercise the contract, and buy the house for $105 and thus pay $110 total (bcuz you paid $5 for the contract).

Or, you could sell the contract, and someone else will buy the house for $105 at the end of the three months.
You sell the contract at a premium. You paid $5 for it, but since the house is worth more than what someone can buy it for, you sell the contract for $10.

You've doubled your money.


Now, imagine your contract was for 100 houses. More money on the line, but more reward when it pays off.
 
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IMG_6415.jpg Good stuff, no doubt.

My confusion comes in when looking at the actual spread.

Let's consider these FB options.

Looking at the calls, for $37 (.37x100) I can purchase a contract for 100 shares at a price of 172.5.

So if the price of FB rises to let's say 177.5, I can exercise that option. I would Buy 100 shares at 172.5 per contract and sell at 177.5 making the difference of $500 (5x100 shares) off a $37 option for a ~1350% return?

And for the second question, if I choose not to do that method you explained that I can sell it to someone else? I'm assuming I'm selling it to someone else who wants to purchase it at that price but... how do you go about doing that vs. excersizing the option?
 
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72,055
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You don't excercise if you don't want to hold stock long term. You just sell the option. If you buy calls at 175 for .50 and the stock goes to 180, those calls are now worth $5 at minimum depending on the volatility and time decay (they could be worth more but there's $5 worth of intrinsic value). You sell your calls to the market maker for $5 and you just made monster profit.
 
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I have never heard anyone say they actually exercised any options. People usually just trade the contracts only. Depending on the company, 100 shares would be a LOT of money, haha.


I'm currently going in on $JD calls, have more money than I've ever had in a position in calls expiring next year. I plan on holding through ER and not looking back. A week from Monday I will either be a very happy man, or I'll be hoping for a swift recovery. Was up a couple thousand with Friday's close and I might be up a lot more with a run up to the ER, but I'm not touching it. Can't wait to for the 13th, I'm expecting an absolute smash when they report. I usually will only play the run up to ER and never hold, especially the way the market reacts to er beats sometimes, but I feel I have to do this.
 
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I went against my long term strategy and sold all my TSLA today. Goal is to get back in sub $310 at some point.
 
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