Press question mark to learn the rest of the keyboard shortcuts ... Log in sign up. Puts are excellent trading instruments when you’re trying to guard against losses in stock, futures contracts, or commodities that you already own. Is there a calculator that does all this math for me somewhere without paying? Option Exercise. Most options end up expiring worthless. What I do know is: it involves buying OTM options on a certain set of a couple dozen stocks and index funds , never selling naked options or selling spreads. The other thing you can do is exercise an option. Therefore, selling or writing put can be a rewarding strategy in a stagnant or rising stock. r/wallstreetbets: Like 4chan found a Bloomberg Terminal. Choi then used his new capital to buy put options on the SPDR S&P 500 exchange-traded fund , a popular gamble among WallStreetBets members. Choi invested $766 in Roku puts, or bets that a stock would decline, and on Sept. 20 the typically volatile stock plummeted 19%. Option Expiry. It is known for its very aggressive trading strategies, which primarily revolve around highly speculative options trading. There are all kinds of ways to play options so it is difficult to answer any of your questions with any certainty. Here is a typical situation where buying a put option can be … 162. Search 'delta neutral options trading' Press J to jump to the feed. 40 detailed options trading strategies including single-leg option calls and puts and advanced multi-leg option strategies like butterflies and strangles.

However, in the case of falling stock, the put seller is exposed to significant risk, even though the seller risk is limited as the stock price cannot fall below zero.

Last month, Choi became a WallStreetBets celebrity when he placed a small bet on Roku options. Shitpost. r/wallstreetbets. Saw one a couple months back about a trader who bought over 9k $46 call options on Morgan Stanley, with today as an expiration. r/wallstreetbets: Like 4chan found a Bloomberg Terminal. By choosing to continue, you will be taken to , a site operated by a third party. I know Taleb has written about OTM options being very lucrative and cheap but I have never been able to get it to work, and obviously there is the skew which makes the puts expensive. In writing put options, a writer is always in profit if the stock price is constant or move in an upward direction. In the money or out of money? Unlike put options, call options are generally a bullish bet on the particular stock, and tend to make a profit when the underlying security of the option goes up in price. Think of it like this. We are not responsible for the products, services, or information you may find or provide there. What expiration date? Close. User account menu • Put Options… r/wallstreetbets: Like 4chan found a Bloomberg Terminal. Options are contracts that give the trader rights to sell or buy securities by a certain, specific date. Options will make your dick fly off.