bought a few dozen calls on Apple, $170 strike nov 26th expiry. i basically figure creators and reviewers and everyone who’s been waiting will be starting to get these over the next few weeks and the halo effect will be great. & it’s a good sign that apple listened to customers
-
-
ya max cost $24
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
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!
-
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!
- Show replies
New conversation -
-
-
Your obligation is $24. You’re buying the option, so you’re buying the right to buy 100 shares at 170 should AAPL get there. Even if it does, and you don’t want to buy 100 * 170, there are workarounds. Generally you’re going to make more by selling the option before expiry though
-
yeah, there are a lot of opportunities to get out depending on your tolerance for risk. the option itself could be valuable in a week because the hypothesis is hot, and you could sell 1/3rd when the option value goes up 2x.
- Show replies
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.
still $24
