I put a big irrational premium on making the same bet as friends so we can celebrate if it has an outsized win (I also bought a few dozen, which I’m okay losing)
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Replying to @himbodhisattva @nickcammarata
🤷🏻♀️ Retweeted 🤷🏻♀️
take a look at this. to make money it’s got to clear $170.24. if
$AAPL is $180, each will make $1000. it’s$AAPL is $148 now and rising quickly.https://twitter.com/DanielleFong/status/1450594468860674049 …🤷🏻♀️ added,
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Replying to @DanielleFong @nickcammarata
I feel like there are many much harder to justify prices out there than
$AAPL at $171!1 reply 0 retweets 3 likes -
Replying to @himbodhisattva @nickcammarata
haha what you mean
$NKLA at $10
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learning in public - could someone eli5 my payment obligations in the pic? I’m fine paying $24 on a gamble but not $170 x 100 sharespic.twitter.com/5LGKTr9PhW
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oh, in this picture you’re buying! you have $0 obligations, other than you have to purchase the option at a $24 ticket price! the person who’s selling you the option is liable for a lot if the price goes up past $170. i don’t think individual investors should do this!
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Replying to @DanielleFong @strangestloop and
the only case where they could is as writing a covered call, where if they have 100 shares already they sell the option to sell them at a $170 strike price. that would make some sense. selling naked calls on this is probably a bad idea!
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interesting - well i’ll learn more by doing ty
pic.twitter.com/3JyDxvhiab
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Replying to @strangestloop @DanielleFong and
Although you don’t have an obligation to buy the shares, if they expire in-the-money (e.g. the price of Apple at expiration is over 170), your broker will probably exercise them for stock, i.e. you’ll have 100 shares of AAPL for $17,000. To avoid that, just sell before expiry.
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thanks Paul! haha yes you used to do options trading professionally as a quant iirc :D
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