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RisingAbove

11/19/2020 01:51

$Landcadia Holdings II Inc Question on sell call options December just so I'm understanding. If I buy 12.5 sell call options and it expires does that mean I lose my shares or I keep the shares and made money. Never done options and watched a few vids but still a little confused on how you make money on options. I know if you do like 22.50 sell call options and it expires you get money and keep shares. If you expect prices to go up you do sell puts or calls to make money on options going up?
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All Comments(8)

Iwo***com11/19/2020 05:12
aca•••com Looks like you just started to moron based on your posts and people you follow and who follow you you have zero followers and following zero and made about four posts so STFU

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aca***com11/19/2020 05:01
Wrong. Close your account and quit the stock game, you’re not ready for this.

Iwo***com11/19/2020 05:10

STFU you moron

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Iwo***com11/19/2020 03:06
And when you do get started with options just buy call contracts so basically you’ll be betting the stock will go up or buy puts in your bedding it goes down just don’t get into the selling

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realWillMeade11/19/2020 03:03
Yes please look at all the pros and cons

it starts with your gut and also some due diligence.

Do you believe in the stock long term or short term. If you can handle the ups and downs, invest long term. In this case you want a long option. If the price of the stock is currently $14 you have some choices. You could bet on it being worth more in the future. Based on the volatility of the stock, the cost for say, a MAY 21 $10 call is $6.20/share. An " in the money" call or put is worth more because it already contains intrinsic value (if the current stock is 14 and the call is 10, you have $4/share already included in the current price and the 2.20 is the extrinsic cost. IF the price stays the same until may, you only lose the extrinsic (2.20) cost if you choose to sell the final minute of the contacts expiration.

most people don't hold contacts until expiration.

You can choose an out of the money option, say, for example, a may 21 call for, say, $20 with a strike of .45/share ($45 contract) you need 20.45 on the day of expiration to break even. The extrinsic value would be cheaper because the probability of it being that price is less. So, if May comes along and the stock is worth 20.44$ on the day of expiration, You lose the extrinsic amount you paid for the right to buy those shares.

I like to buy in the money options on short term stocks so I pay a high Intrinsic value to assure my option is at the current value of the stock. if my Option expires in a week or 2 I want to bet on it going up or down short term. If the stock decides to go down when I bet it goes up. I lose $100 per dollar the stock drops, conversely, I gain when it goes up. If I chose an out of the money option short term, I better hope it meets the price I go for otherwise the option is worthless and I lose money.

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Iwo***com11/19/2020 02:43
Google this option traders for beginners videos and look for this guy because from the beginning to end about every part of options it’s very good and good luck to you if you ever have any questions give me a holler

423****67311/19/2020 02:51

yes, projectoption has excellent videos

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Iwo***com11/19/2020 02:30
My suggestion is go on YouTube and look at as many different videos on options trading as you can there’s also some guy that has upside called traders fly on YouTube that’s one but there’s a ton of them learn from that

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Iwo***com11/19/2020 02:01
Sounds like you really don’t know too much about it I’m not trying to make fun of you but you need to really look at videos and learn what happens when you sell calls you have to own the stock at least 100 shares to sell one contract you will get the premium paid to you for that stock and you get to keep the premium no matter white but if the stock goes past the strike price you will have to sell your shares to that person at that strike price so you bought the shares For $10 and you decide to sell calls on them at a $15 strike price in the premium that you get is let’s say $125 for the contract if it expires worthless you keep your shares in the $125 if it expires in the money you will more than likely be assigned and have to sell the shares for $15 so you really not losing anything but your shares you’re gonna make money on the shares because you paid $10 for them plus you get the premium so then you can go back and buy them again

RisingAbove11/19/2020 02:13

I understand, yeah I'm not doing options yet. Been trying to understand it before I get into it. I realize could lose quite a bit of money if done improper. I appreciate your positive feedback.

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RisingAbove11/19/2020 01:53
like if I do a 15 sell put for dec. And the price is currently under 15. The more it goes up the more I make if I sell before exp. right. Question is do I keep my shares or I have to buy more?

423****67311/19/2020 02:53

go to YouTube and watch projectoption's vids. DONT mess with options until you understand how they work. you can lose A LOT of money very quickly!!!

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