hunkyfunky2 Posted March 31, 2021 Report Posted March 31, 2021 3 minutes ago, kran said: Nee daggara $6000 unte Case 1: Buy 1 Call Option contract at the SP of $60 for $60 premium . So, you are controlling 100 shares of AAPL. If AAPL price goes up by $60, your profit will be 100* $60 = $6000. And your account balance will be $6000 + $6000 = $12000 If AAPL price goes down to $60, your loss will be 100 * (-$60) = -$6000 And your account balance will be $6000 - $6000 = 0 Case 2: Buy 50 stocks of AAPL If AAPL goes up by $60, profit will be 50 * $60 = $3000, Account balance will be $9000 If AAPL goes down by $60, loss will be -$3000, Account balance will be $3000 So, Options konte, account zero aipoye chances untayi. Stocks konte, you will atleast have something in your account that can go up after a year or two. Plus dividend. One way you can make more money in both cases is selling covered calls...will make 20 to 30$ with patience and discipline every year Quote
Tesla_Elon Posted March 31, 2021 Report Posted March 31, 2021 19 hours ago, TheRealBulBul said: Why you think I don’t own the stock and more risky?? My plan is to exercise the option in 2023 for the lock rate of 60$.. invest less now for current rate and take more profit in future instead of investing more and taking same profit.. issue enti ante: 1) what if the stock under performs?? 2) nee strike price kanna low unte all ur investment is useless 3) company is delisted 4) 2023 varaku your investment is locked assuming u don’t sell the options until then.. mean while u can invest in something and sell based ur profits Quote
kran Posted March 31, 2021 Report Posted March 31, 2021 38 minutes ago, Tesla_Elon said: issue enti ante: 1) what if the stock under performs?? 2) nee strike price kanna low unte all ur investment is useless 3) company is delisted 4) 2023 varaku your investment is locked assuming u don’t sell the options until then.. mean while u can invest in something and sell based ur profits Regarding 4), the investment is not locked. It can sold anytime provided there are buyers ready to buy at that strike price. For popular stocks, it is not an issue. Regarding 3) Company delist aithe, stocks ki kooda same problem kadha? But alaanti risky companies meedha its better not to trade options. Quote
Tesla_Elon Posted March 31, 2021 Report Posted March 31, 2021 3 minutes ago, kran said: Regarding 4), the investment is not locked. It can sold anytime provided there are buyers ready to buy at that strike price. For popular stocks, it is not an issue. Regarding 3) Company delist aithe, stocks ki kooda same problem kadha? But alaanti risky companies meedha its better not to trade options. Just example cheppa and i also said assuming you don’t sell it ani. Yes, you can sell it if buyers are available but even for mid level companies one bad news will drive away potential buyers in such case even if u wanted to sell at the current price u can’t Lock annadi nee initial investment.. Quote
Thokkalee Posted March 31, 2021 Report Posted March 31, 2021 If the stock goes through ups and downs for the next 2 years and is still around $120, then you will lose $6K... there are several stocks which stay at the same price for years.. Quote
kran Posted March 31, 2021 Report Posted March 31, 2021 7 minutes ago, Thokkalee said: If the stock goes through ups and downs for the next 2 years and is still around $120, then you will lose $6K... there are several stocks which stay at the same price for years.. You wont lose $6k since the strike price is $60. You can still get that difference of 120-60=60 back per share. You will lose only the premium. If you are buying deep in the money, then premium cost is almost negligible, like $1 to $2 in some cases. 1 Quote
AndhraneedSCS Posted March 31, 2021 Report Posted March 31, 2021 Patience unte edi konna dabulu vastayi. Adi leka ila tayaru ayyamu Quote
betapilli Posted March 31, 2021 Report Posted March 31, 2021 1 minute ago, AndhraneedSCS said: Patience unte edi konna dabulu vastayi. Adi leka ila tayaru ayyamu Steel, wood, concrete lanti వాటి మీద invest చెయ్యి, బాగుపడతావు. Quote
pandemkodi Posted March 31, 2021 Report Posted March 31, 2021 1 hour ago, hunkyfunky2 said: Plus dividend. One way you can make more money in both cases is selling covered calls...will make 20 to 30$ with patience and discipline every year You can sell covered calls on options as well . Quote
pandemkodi Posted March 31, 2021 Report Posted March 31, 2021 39 minutes ago, Thokkalee said: If the stock goes through ups and downs for the next 2 years and is still around $120, then you will lose $6K... there are several stocks which stay at the same price for years.. You don’t lose if it is at 120 since your strike is 60 you can buy stock at 60 Quote
odhu_le_macha Posted March 31, 2021 Report Posted March 31, 2021 25 minutes ago, AndhraneedSCS said: Patience unte edi konna dabulu vastayi. Adi leka ila tayaru ayyamu Options ki patience ki link enti ba time decay untadi...stocks lo patience kavali kani Quote
AndhraneedSCS Posted March 31, 2021 Report Posted March 31, 2021 7 minutes ago, odhu_le_macha said: Options ki patience ki link enti ba time decay untadi...stocks lo patience kavali kani 2023 option koni danini 2023 daka unchali ga. I have seen some of my options go to 100% and now turned -20%. 1 Quote
odhu_le_macha Posted March 31, 2021 Report Posted March 31, 2021 1 minute ago, AndhraneedSCS said: 2023 option koni danini 2023 daka unchali ga. I have seen some of my options go to 100% and now turned -20%. ok profit vachinapude ammyadam better options ani ardam aindi ba full profit lo unna options kuda last day ki negative ki poyayi...stocks unte kaneesam edo oka roju profits vachevi 1 Quote
nokia123 Posted April 1, 2021 Report Posted April 1, 2021 1 hour ago, AndhraneedSCS said: Patience unte edi konna dabulu vastayi. Adi leka ila tayaru ayyamu Quote
idibezwada Posted April 1, 2021 Report Posted April 1, 2021 there is very less probability that you can buy a $60 call for $60 when the stock is trading at $120 Quote
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