Does this guy run the district where Moscow Mitch’s $200m Russian plant or whatever it was was gonna be?
Leverage and I gave you an extremely simplified version. If you sell the contract in the money before the expiration date you can turn a huge profit. Happy to discuss further but don’t want to derail the thread.
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Buy GE Puts and KGC calls.
Also, do this yesterday
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And we’ve gone to -500
Down 4% today so far; I hope you got in at the open.
One costs you $95 a share to buy and then you get the $110 when you sale for $15. The other costs maybe $2 to buy so you can by 47 option contracts for $94 and then profit the $376 (110-100 strike price)*47 -94-price of option. A much larger return.
The risk is if Apple goes to $98 you lose the full $94 on the option while you gain $3 on the purchase of the stock.
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GE makes sense, I’m not sure why KGC is going up more than GLD though? I guess a big chunk of the world’s gold is in China, and I’m guessing most of theirs is not?
Probably if it dips back under 24,000 we’ll start seeing lots of feverish tweets complaining about how the real number is closer to 30,000 and if the ENEMY OF THE PEOPLE fake news would stop trying to bring on a recession it really should be 35,000.
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Oh, so you’re not required to have the cash on hand to buy the 47 shares to exercise the 47 option contracts? That makes sense then.
You buy the option, not the share
Yeah I got the order in right at the open and the sale was executed at $209.13. Briefly considered buying the VIX, did not, it’s up like 23% since 9:30 est lol… Oh well. That would have been more risky anyway.
Right but since the option is an option to buy the shares, I thought at the end of it you’d have to have the cash on hand to buy them in order to exercise it.
Nope. You can close it out for a profit. If you sell a call and it gets exercised you have to have 100 shares and if you don’t have them or cash to buy them…RIP. They don’t let you do that in retirement accounts though.
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lol at thinking Trump is playing 4D chess with the economy.
That all makes sense, thanks!
Same.
Do we have a dedicated thread for this stuff? (I don’t really think it belongs in the “It’s The Economy, Stupid” thread)
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Check his twitter feed. He did this throughout Obama’s second term