Stock discussions

[dkchinnari]

8 minutes ago, pandemkodi said:

Loose 3k 

edit

[Spartan]

Just now, sri_india said:

you have option to sell the stock at loss or let the option expire , either way you loss ... as pandemkodi cheppinattu options are risky , don't look other profits and decide , if you want to play options start with LEAPS (long options , more than 1 year expiry) 

sure long calls ye kontam...

so loss ki ammukovachu mottam 3K pokunda...right.

thanks. @sri_india

[sri_india]

3 minutes ago, Spartan said:

sure long calls ye kontam...

so loss ki ammukovachu mottam 3K pokunda...right.

thanks. @sri_india

yes , but selling stock at loss might be bigger than your option premium many times ..... options premium changes based on stock volatility so  3K might be smaller than actual loss on selling stock (remember each option contract is 100 stocks) 

[sri_india]

@Spartan , I think you have TD account right? follow the tutorial I sent to you and do paper trading , TD give good amount to practice ..... 

[Spartan]

8 minutes ago, sri_india said:

yes , but selling stock at loss might be bigger than your option premium many times ..... options premium changes based on stock volatility so  3K might be smaller than actual loss on selling stock (remember each option contract is 100 stocks) 

case 1:

APPLE Price today - 100$

1 year 150$ Call price is say 5$ -and i buy one call for 500$.

and before the expiry in 6 months, APPL price becomes 120$ and Call price goes up to 8$. ( so my call value is 800$)

nenu ammite a call appudu, i will have 300$ as profit.

or do i get 120x100 = 12000

is this right.

 

case:2

same above. But price now falls to 80$ and call price goes to 2$ from 5$.

so my call value is 200$ (loss of 300$).

if i sell those calls... i will have 200$ only...

or do i need to pay for the entire stock that is 80 x 100 = 8000$.

 

@sri_india  @Vaampire  @pandemkodi

 

[Spartan]

3 minutes ago, sri_india said:

@Spartan , I think you have TD account right? follow the tutorial I sent to you and do paper trading , TD give good amount to practice ..... 

yes TD kuda undi..will follow thanks. @sri_india

[kittaya]

7 minutes ago, Spartan said:

case 1:

APPLE Price today - 100$

1 year 150$ Call price is say 5$ -and i buy one call for 500$.

and before the expiry in 6 months, APPL price becomes 120$ and Call price goes up to 8$. ( so my call value is 800$)

nenu ammite a call appudu, i will have 300$ as profit.

or do i get 120x100 = 12000

is this right.

 

case:2

same above. But price now falls to 80$ and call price goes to 2$ from 5$.

so my call value is 200$ (loss of 300$).

if i sell those calls... i will have 200$ only...

or do i need to pay for the entire stock that is 80 x 100 = 8000$.

 

@sri_india  @Vaampire  @pandemkodi

 

case 2 lo 80$ stock ni 100$ ki konali 

[kittaya]

shannu is unfittt 

 

[kittaya]

shannu is unfitt ani vadiki vadu anukuntunadu 

 

[pandemkodi]

15 minutes ago, Spartan said:

case 1:

APPLE Price today - 100$

1 year 150$ Call price is say 5$ -and i buy one call for 500$.

and before the expiry in 6 months, APPL price becomes 120$ and Call price goes up to 8$. ( so my call value is 800$)

nenu ammite a call appudu, i will have 300$ as profit.

or do i get 120x100 = 12000

is this right.

 

case:2

same above. But price now falls to 80$ and call price goes to 2$ from 5$.

so my call value is 200$ (loss of 300$).

if i sell those calls... i will have 200$ only...

or do i need to pay for the entire stock that is 80 x 100 = 8000$.

 

@sri_india  @Vaampire  @pandemkodi

 

Right if you buy for 5 which is 500 and if you sell for 8 you get 300 profit . Same way for loss .

always buy 2 years away calls  try to get at the money .. for example aaple 150

i am doing this with aaple since 2016 and never had loss . Profits are more than 3x but as always markets are up trending since then . I lost 80 percent of invested in baba though . 

[Spartan]

5 minutes ago, pandemkodi said:

Right if you buy for 5 which is 500 and if you sell for 8 you get 300 profit . Same way for loss .

always buy 2 years away calls  try to get at the money .. for example aaple 150

i am doing this with aaple since 2016 and never had loss . Profits are more than 3x but as always markets are up trending since then . I lost 80 percent of invested in baba though . 

    @Vaampire  

 

chivarlo nag gadi expression ichukuntunnaremo meeru mugguru.... @sri_india @pandemkodi

[sri_india]

23 minutes ago, Spartan said:

case 1:

APPLE Price today - 100$

1 year 150$ Call price is say 5$ -and i buy one call for 500$.

and before the expiry in 6 months, APPL price becomes 120$ and Call price goes up to 8$. ( so my call value is 800$)

nenu ammite a call appudu, i will have 300$ as profit.

or do i get 120x100 = 12000

is this right.

 

case:2

same above. But price now falls to 80$ and call price goes to 2$ from 5$.

so my call value is 200$ (loss of 300$).

if i sell those calls... i will have 200$ only...

or do i need to pay for the entire stock that is 80 x 100 = 8000$.

 

@sri_india  @Vaampire  @pandemkodi

 

 your example is for call option for buying underlaying  stock ... so you are paying today $500 to buy apple for $150 after 1 year .... 

 as you told , after 6 months Apple price $120 - call premium down to $200 - now you have choice to execute that option by buying the stock(but why anyone do that when you get stock cheap outside)  or sell your option at loss ..... you buy option at $500 , now selling at $200 - your loss $300 not the actual stock price 

 

[Spartan]

4 minutes ago, sri_india said:

 your example is for call option for buying underlaying  stock ... so you are paying today $500 to buy apple for $150 after 1 year .... 

 as you told , after 6 months Apple price $120 - call premium down to $200 - now you have choice to execute that option by buying the stock(but why anyone do that when you get stock cheap outside)  or sell your option at loss ..... you buy option at $500 , now selling at $200 - your loss $300 not the actual stock price

loss lo unte call ammi dobbadam better aite...ante na.

[sri_india]

5 minutes ago, Spartan said:

loss lo unte call ammi dobbadam better aite...ante na.

ala aani emi ledhu .... lets say , you are very confident on Apple , next 6 months lo malli $150 ki vellachu before actual expiration ... and your option kuda rebound kavachu ..... 

but sometime yes , sell them for loss , appudu evarina apple meedha bet chesee vadu can buy it as it is coming for less premium now ..... but time is short (time decay)  ...

[Spartan]

6 minutes ago, sri_india said:

ala aani emi ledhu .... lets say , you are very confident on Apple , next 6 months lo malli $150 ki vellachu before actual expiration ... and your option kuda rebound kavachu ..... 

but sometime yes , sell them for loss , appudu evarina apple meedha bet chesee vadu can buy it as it is coming for less premium now ..... but time is short (time decay)  ...

gotcha..will try on long term ones first.