GE went to the moon and then plummeted straight to hell literally one trading day after my puts expired so never again
theyve been putting holds on my account because im taking money out of mine and its annoyingAF to keep having to call them woat website layout, woat service
In the future, try closing out your positions about 3 days before expiration. Most banks / traders / hedge funds will not carry a position into expiration for several reasons that i wont bore you with.
This is a great resource. If you are just begining start here. I will be glad to answer any options questions you have in this thread also. http://www.cboe.com/education/#
For the most part you want to use the strike that is out of the money when trading options. There are very few exceptions and most involve an interest rate play
Yeah I just wasn’t sure exactly. Example sake, let’s say Stock X is at 100.00 and I am “betting” on it to fall over the next month. What kind of strike price, would I be looking to do? Also in this case would I do the “ask” price?
If you buy a put you are betting on the price of the stock going down, if you sell a put you want to stock to go up.(exact opposite for call options) Put by definition is "the right, but not the obligation, to sell the stock at the strike price" In your example lets say the stock is trading $100 and you bought the 90 strike put. The stock then goes down to $75 on some bad news. At that time you still own the right to sell the stock at $90 (even though it is trading $75). Even if the stock went bankrupt and all the way to $0 you still get to sell it at $90 The "bid" and "ask" you are referring to are the price at which you can buy or sell the option. Just like a stock. When you sell a stock or option you sell to the bid (buyer). When you buy a stock or option you buy the ask price or offer. This is referred to as the bid-ask spread and is basically the fee charged for taking the other side of the trade. Like paying a bookie juice. Here are some aapl options quotes. The strike circled is the 160 strike. The call market is $10.10-$10.30 and the put market is $.03-$.04 You can sell calls at 10.10 ...you can buy calls at 10.30 You can sell puts at .03 and you can buy puts at .04
And the puts are .03-.04 because there's a low likelyhood of it dropping down to $160? Why is the call side higher?
I love Schwab, use it for almost all of my banking and investing. My 401(k) is through Alerus and it is absolute trash.
Maybe even checking/savings https://www.google.com/amp/s/www.cn...banks-with-checking-and-savings-accounts.html
My girlfriend doesn’t invest and has like 55k in a savings account. Making her move that to robinhood next week
I would not trust a startup gambling app with my savings or checking accounts. That said, I'm number 282,836 in line.
FWIW, SIPC, not FDIC, which I guess is what you get currently on their cash accounts? https://www.google.com/amp/s/amp.usatoday.com/amp/2303674002
Yes it reflects the likelihood that the stock would go below $160. There is a mathematical formula that tells you the percentage chance that it goes below $160 and its called DELTA. There is only 1 day until these options expire (december 14th) so it is pretty unlikely that AAPL will trade below $160 before tomorrow afternoon and thats reflected in the .03-.04 price. I would guess the delta is about 2 or 3 and reflects a 2 or 3 percent chance the the puts will finish in the money. The call option on the other hand is the right to buy. So the 160 call is what we call "in-the-money". Meaning if the stock were trading $170 the call would be $10 in the money. You could purchase the stock at $160 through your option and then turn around and immediately sell it on the open market at $170 for a $10 profit.
Still need to make my employer non elective deferral contributions to our 401ks and have until april filling to do it. Thinking we still have a bit more to fall and I should hold off for a while, but I'm probably wrong, like always.
Recession szn is almost here. Keep waitin. 2 more rate hikes in 2019; the Fed is trying to reload in case they’ve got to do more QE to prop up the value of the Boomers assets as they all retire.
Disappointed we didn’t get another “they know nothing rant” from Cramer yesterday. Fed is so disconnected from reality it’s embarrassing.
They’re solely focused on US markets and US data. They hardly acknowledge the slowing of the global economy which will affect our own economy soon. Additionally inflation here is under control. There was absolutely no reason to raise rates yesterday and more importantly forecast potentially two hikes next year. The DOW dropped 1000 pts in 24 hours after the fed announced yesterday. Clearly the market agrees J. Powell is off his rocker.
Counterpoint: artificially low interest rates for nearly 2 decades has its own separate set of problems.
I don’t necessarily disagree with you lech here is just another perspective / argument. There has never been a fed chair that has been able to thread the needle in regards to raising rates to meet their mandate. Also, they absolutely need enough ammo in the gun to lower rates to get the economy going during our next normal business cycle recession which we are absolutely due for. Should the fed be more data dependent here instead of striving for what they consider the neutral rate? Yes. Do we need enough ammo to quickly get the economy out of the next recession? Yes. Damned if they do damned if they don’t imo.
There was absolutely a reason to raise rates. There's a global recession incoming, like you said. Look at this MF graph. X axis, is time, Y axis is Fed rates, grey areas are the recessions. Do you see how they lower rates during recessions, with the the exception of Volcker's fuckery in the 80s? They should have started raising rates earlier but Ben is a criminal and Janet had jobs to worry about and people like yourself got real fixated on how sweet their asset appreciations looked on paper so they just let it ride. The response from wall street on the rate hikes is proof enough that that sector of the economy is wayyy fragile and assets are overvalued, propped up by cheap credit. Now they've got a tiny big of rate wiggle room to fuck with whenever the perpetual boom bust cycle of capitalism does its next bubble pop. and ALL of the big banks said it's going to happen within the next 3 years. J Powell knows what he's doing, imo. He's already made his fortune off taxpayers at the Carlyle group and has a personal interest in the long term health of the economy. If you're sick of this type of roller coaster ride there's a good book out there called Das Kapital that does a much better job of explaining this than my potato brain could. The way we organize our economy is absolutely asinine and millions of old people will suffer because of it.
I completely agree rates should’ve been hiked a number of times over the last decade. However, all I said in my post was in reference to their decision yesterday.
How can you come to the conclusion that you think rates should have been raised earlier but also be butt hurt they were raised?
As much as I hated realizing losses, I pulled 65% of my money out of the market; just left my high dividends behind to give me something to play with. Feels dirty, but I don’t see anything wrong with parking that money in a 2.35% savings account for the time being.
It’s looking like cash is going to be one of the best performing asset classes of 2018 so you aren’t wrong here at all. Dollar cost average your way back in whenever you decide that’s necessary
Yeah the fed raised rates to prepare for the end of the current business cycle accelerated by tax cuts and overvalued assets responded accordingly.
Lech you probably aren’t going to like this. But this trade war China is absolutely fucking dumb. Trump has way over played his hand here and rates are not the only thing driving this sell off. This tarrif bullshit is a huge uncertainty. I’ve said it time and time again but the global economy took off in mid 16 when global trade was rolling. Trump needs to cut a fucking deal and spin it as a huge win no matter what the particulars are even if it means unwinding the tariffs and going back to the status quo the day he took office. That uncertainty needs to get out of here ASAP.