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I usually never give investment advice but....

Tito_Jackson

Tito_Jackson

Truth Teller
Registered
A to Dah K said:
Whats the diff between options and buying shares?
Click to expand...
This is long, but well worth the read.

When you buy stock, you basically are buying into the company.

When you purchase options, you are securing the option to buy the stock at a certain price, called a "strike price." So, think of it like this.......I tell Hertz "I feel that your stock will be increasing in price in the near future. So, let me give you some money to let me buy the stock at a certain price (strike price)."

So, Hertz is currently $2.88. I will give them 65 cents per "contract" for the "option" to buy the stock at $3.00 (the syrike price I selected) by a certain date (called an Expiration date)that I pre-selected. In this case, June 19th is the Expiration date I selected. Which means I will have until June 19th to buy the stock at $3.00 per share. As the price of the Hertz stock increases my "contract" becomes more valuable. For example if Hertz goes up to $3.88, my contract is now worth $1.65 or more.

What you need to also know is each contract is worth 100 shares of stock. So, in our example, my contract at 65 cents costs me $65.00........65cent x 100= $65.00. When it went up to $3.88, my contract is now valued at $165.00.......$1.65 x 100 = $165.00. So, I made $100.00

Now, if I just bought the stock in a regular trade, using using $65, at $2.88 per share, I can buy 22 shares. The price in our example rose from $2.88 to $3.88, which is a $1.00 increase. So, since I have 22 shares, I made $22.00.

Options are more of a speculation and are riskier because they require you to pay attention to the market. Additionally, you need to prepared to sell relatively quickly if needed to preserve your profit in some scenarios. In this scenario I was speculating that the stick would increase, but you can also go the other way as well. Which means, with options, it doesn't matter if the stock is going up or down, there is always potential to earn a profit.

I have an active Spirit contract with a $15.00 strike price that I got for 74 cent. It is now worth $7.95. Being fully transparent, I really f'd up this trade. I thought I was buying 100 contracts, but I only bought 1. So, my $721.00 profit should have been $7210.00. Everybody messes up from time to time. I am not afraid to admit it as well. People need to know we are human and we make mistakes.

So, my play on Monday is to buy 100 Hertz Call options at 65 cents with an Expiration of June 19th and a strike price of $3.00 which will cost me $650.00. I am confident this will go up to at least $3 and some change. I will probably let this ride all the way through Expiration.

Let me know if this cleared it up for you or if any9ne has any additional questions.
 
Last edited:
HellBoy

HellBoy

Black Cam Girls -> BlackCamZ.Com
Platinum Member
Still out here learning. I finally got around to learning about the Futures market (last part of Trading Places movie). The entry point is $15k for intraday trading, I'm not there yet, so that'll be a challenge for another day.

Right now I am still doing day trading.

If you use ThinkOrSwim for practice or trading, here is a nice script to set the Resistance and Support levels for you.

 
A to Dah K

A to Dah K

Rising Star
BGOL Investor
Tito_Jackson said:
This is long, but well worth the read.

When you buy stock, you basically are buying into the company.

When you purchase options, you are securing the option to buy the stock at a certain price, called a "strike price." So, think of it like this.......I tell Hertz "I feel that your stock will be increasing in price in the near future. So, let me give you some money to let me buy the stock at a certain price (strike price)."

So, Hertz is currently $2.88. I will give them 65 cents per "contract" for the "option" to buy the stock at $3.00 (the syrike price I selected) by a certain date (called an Expiration date)that I pre-selected. In this case, June 19th is the Expiration date I selected. Which means I will have until June 19th to buy the stock at $3.00 per share. As the price of the Hertz stock increases my "contract" becomes more valuable. For example if Hertz goes up to $3.88, my contract is now worth $1.65 or more.

What you need to also know is each contract is worth 100 shares of stock. So, in our example, my contract at 65 cents costs me $65.00........65cent x 100= $65.00. When it went up to $3.88, my contract is now valued at $165.00.......$1.65 x 100 = $165.00. So, I made $100.00

Now, if I just bought the stock in a regular trade, using using $65, at $2.88 per share, I can buy 22 shares. The price in our example rose from $2.88 to $3.88, which is a $1.00 increase. So, since I have 22 shares, I made $22.00.

Options are more of a speculation and are riskier because they require you to pay attention to the market. Additionally, you need to prepared to sell relatively quickly if needed to preserve your profit in some scenarios. In this scenario I was speculating that the stick would increase, but you can also go the other way as well. Which means, with options, it doesn't matter if the stock is going up or down, there is always potential to earn a profit.

I have an active Spirit contract with a $15.00 strike price that I got for 74 cent. It is now worth $7.95. Being fully transparent, I really f'd up this trade. I thought I was buying 100 contracts, but I only bought 1. So, my $721.00 profit should have been $7210.00. Everybody messes up from time to time. I am not afraid to admit it as well. People need to know we are human and we make mistakes.

So, my play on Monday is to buy 100 Hertz Call options at 65 cents with an Expiration of June 19th and a strike price of $3.00 which will cost me $650.00. I am confident this will go up to at least $3 and some change. I will probably let this ride all the way through Expiration.

Let me know if this cleared it up for you or if any9ne has any additional questions.
Click to expand...
Thanks
 
Tito_Jackson

Tito_Jackson

Truth Teller
Registered
Tito_Jackson said:
So, my play on Monday is to buy 100 Hertz Call options at 65 cents with an Expiration of June 19th and a strike price of $3.00 which will cost me $650.00. I am confident this will go up to at least $3 and some change. I will probably let this ride all the way through Expiration.
Click to expand...
So, if any of you copied my play regarding Hertz, you are dancing right now. Like I mentioned in my options example, Hertz is up about a dollar which is netting me about a $1000.00 profit for this morning since I bought 100 shares.

Airlines are still steady. We missed out on Hilton though.
 
A to Dah K

A to Dah K

Rising Star
BGOL Investor
Tito_Jackson said:
So, if any of you copied my play regarding Hertz, you are dancing right now. Like I mentioned in my options example, Hertz is up about a dollar which is netting me about a $1000.00 profit for this morning since I bought 100 shares.

Airlines are still steady. We missed out on Hilton though.
Click to expand...
I purchased 60 shares friday morningThanks
 
Coldchi

Coldchi

Rising Star
BGOL Investor
Tito_Jackson said:
So, if any of you copied my play regarding Hertz, you are dancing right now. Like I mentioned in my options example, Hertz is up about a dollar which is netting me about a $1000.00 profit for this morning since I bought 100 shares.

Airlines are still steady. We missed out on Hilton though.
Click to expand...
Yeah i dumped on Hertz when it got to $6.10......lucky for me, cuz it came back down to like $5.80 in less than a minute after i sold.
Made $4,880 on that sell.

Looks like $HSDT might be hedging for a run tomorrow. So I just bought 700 shares.
Debating on whether I should do the same with IZEA. I'll spy on it during opening hours tomorrow before making a move on it.
 
X

xfactor

Rising Star
BGOL Investor
Tito_Jackson said:
I tried to watch my indicators regarding NKLA. I wasn't sure. I should've pulled the trigger. I think I may have another chance tomorrow to ride the wave a little bit.
Click to expand...
It is in full FOMO mode now IMO, but I wouldn’t be surprised if it hit $120 before major pullback.
 
darius_janus

darius_janus

Rising Star
BGOL Investor
Coldchi said:
Yeah i dumped on Hertz when it got to $6.10......lucky for me, cuz it came back down to like $5.80 in less than a minute after i sold.
Made $4,880 on that sell.

Looks like $HSDT might be hedging for a run tomorrow. So I just bought 700 shares.
Debating on whether I should do the same with IZEA. I'll spy on it during opening hours tomorrow before making a move on it.
Click to expand...

Is Hertz still a long play or just dump them because of them being delisted?
 
Tito_Jackson

Tito_Jackson

Truth Teller
Registered
Right now bro, I would avoid it like the plague. If you made a profit. Be happy. If there is action in the near, it wont be legit. It will be people inflating, pumping, and dumping.

I still believe though that it will eventually appreciate in value. But the delisting is a serious red flag.
 
sammyjax

sammyjax

Grand Puba of Science
Platinum Member
shaddyvillethug said:
That’s wassup bro

keep pushing.

I’m cool on the stawks

you know ima eat regardless tho
$500?

What’s that 5 niggas?
Click to expand...
I remember when Kaya had started the lil wall street journal stock game on here where they gave you $10k fake bread to play the real market with.

Man I ain't never fucked no money up that quick lol I almost didn't get into this shit. But i understand it a lil better now.
 
shaddyvillethug

shaddyvillethug

Rising Star
BGOL Investor
sammyjax said:
I remember when Kaya had started the lil wall street journal stock game on here where they gave you $10k fake bread to play the real market with.

Man I ain't never fucked no money up that quick lol I almost didn't get into this shit. But i understand it a lil better now.
Click to expand...
I swear kaya be changing niggas lives
 

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