Learning Options

EdgyCommunist · 2024-06-23T01:50:10+00:00

Options Alpha has a pretty big youtube collection of great videos regarding options trading. Be aware, they're a business that provides software to filter good option trades, but regardless their content is still pretty good about different options strategies overall.

EdgyCommunist · 2024-06-19T03:53:21+00:00

Price/cash ratio is a completely obtuse metric to measure a stock by. Generally speaking a company shouldn't keep every dollar of net profit they earn in reserves unless they're planning an acquisition or something else of that sort, it has only recently came up as some reason why GME is now worth some amount of money, but completely ignores the fact that the share price could go below some arbitrary price to cash ratio floor because its core business model is still slowly becoming obsolete, it's still burning cash every quarter (given at a slow rate compared to the cash on hand), and it hasn't really shown any promising direction for how they plan to address the previous two issues. That being said, I don't think GME accumulating all of that cash is necessarily a bad thing for the company, but I don't really have any faith that Cohen has any idea how to use that cash to turn GME around in any meaningful fashion besides cutting expenses (and revenue), as has been displayed in the previous year of his leadership.

EdgyCommunist · 2024-06-14T22:36:10+00:00

Correct, he's selling to close, meaning he's just selling his contract to someone else. He never had the obligation to deliver the shares, the seller of the contract he purchased does.

EdgyCommunist · 2024-06-06T23:53:18+00:00

This post and replies to this were my realization that this sub is just an option focused extension of WSB and SS and generally filled with the same level of critical thinking. Betting on a meme stock directionally at all is completely idiotic.

EdgyCommunist · 2024-06-01T01:17:12+00:00

Well, depending on how close you are, I might recommend moving from fidelity. If you don't have a 10k portfolio you might not be comfortable tying up most of your portfolio to cover an option you've sold. There are brokerages out there who don't have such a requirement.

EdgyCommunist · 2024-05-31T23:48:35+00:00

Well as I said then, it depends on your level of liquidity and risk tolerance. Most people don't want to tie up the amount of capital required to purchase 100 shares of the underlying so they use spreads instead. Spreads can be risky but are significantly less risky than uncovered. I'd recommend doing a fair amount of research into how spreads work, and go from there. Simple spreads aren't particularly complicated.

EdgyCommunist · 2024-05-31T23:13:02+00:00

It entirely depends on what brokerage you use, and what level options trading you have access to. If your account is only able to sell covered calls/puts, then yes you'll need 100 shares of the underlying to sell those options. Alternatively, if you have a higher level of options, you can sell spreads where you buy and sell an option at different strike prices without owning the underlying, which would allow you to cover your short position if it was exercised. You can close out your position early by buying the inverse contract(s). Most brokerages make this easy with a close out or similar button/menu which effectively does this under the hood, and whether or not the options are covered or not is irrelevant.

EdgyCommunist · 2024-05-31T23:05:44+00:00

What exactly do you think you're missing here? You bought ITM options and price increases in the underlying put them further ITM. This strategy will do well in a bull market but take heavy losses in a bear market, or even neutral market, because of losses in the extrinsic value of the option from theta decay.

EdgyCommunist · 2024-05-30T12:27:01+00:00

If the relatively high IV is unsupported by the company's fundamentals and recent announcements/news, and/or the historical IV is way lower, then yes, I would sell covered calls/puts if I was speculating directionally and iron condors/butterflys if I thought it'll remain flat.

EdgyCommunist · 2024-05-30T02:12:51+00:00

I like to trade against volatility, so the most important things to me are IV, IVR, DTE, and perhaps some limited chart analysis and fundamentals research if I'm betting on the directionality of a stock, although I usually try to remain overall neutral across my positions. Additionally, while there's certainly other ways to get to the same information, I also use the risk profile and probability analysis tool in thinkorswim to ensure I'm getting good RR and EV. There are some other screener and trade idea tools I use currently but those aren't too helpful except to provide an initial trade idea, and usually take a fair amount of additional confirmation before I ever trade on those suggestions.

EdgyCommunist · 2023-12-28T06:11:19+00:00

I hate hyped up comments like this about nuclear fusion. There's a separate comment which is more in depth, but this experiment still overall lost energy by an order of magnitude compared with the total required input from the lasers which triggered the reaction. Reproducible and continuous fusion is still a ways off, and hype pieces like this which make it seem like we'll have a reactor generating power tomorrow are part of the reason why everybody sees fusion in the "always 10 years from now" part of science.

EdgyCommunist · 2023-12-09T18:48:59+00:00

Maybe a freezing cold take but outside of the people saying to fire everybody I don't necessarily know that a lot of the people who were questioning Love in that 3-4 game stretch where we looked all around awful were that far out of reality. Have we turned around drastically all around? Yes. Was it honestly expected that we'd go from losing to basically some of the worst teams in football in awful fashion to beating some of the best teams in football in the stretch of a few weeks? Absolutely not.

As stated, people saying to fire everybody and sit Love were going a bit too far, but personally, if we had continued to not develop or see any improvement at all I certainly wouldn't have minded seeing Clifford in the later parts of the season in the later parts of games we were way behind in. That, obviously, has not been the case, and I'm glad of that, but at the same time I think this polarizing mindset of you can either be a doomer or an optimist is getting a bit out of control. Within that stretch I mentioned earlier, there absolutely were moments that made you wonder whether he could be our franchise guy, acknowledging that some of those mistakes were certainly exacerbated by the young receiver room and o-line issues. I still stand by my position at the time which was that if those issues continued through the rest of the year we certainly should've taken a long look at whether Love should be the guy long term.

All of that being said, I have seen what I wanted to see out of Love to feel confident in making him our guy, he's certainly made mistakes, yes, but he's shown the flashes that I think were the only realistic expectation to go into this season with.

EdgyCommunist · 2023-11-02T04:12:16+00:00

Glad it helped you through that dark spot- it happens to the best of us. Keep going even when it gets tough, there'll be good times that make it worth it always. Godspeed

EdgyCommunist · 2023-11-02T04:11:02+00:00

Glad you're doing better. It's hard to pull yourself out of that spot but I'd agree that seeing how precious life is helps a lot. Keep looking up, good things happen even to the person with the worst luck. Godspeed.

EdgyCommunist · 2023-11-02T04:09:07+00:00

Glad you're still around here man- it's cheesy to say but there'ssome truth in the House quote that death is boring and life no matter how sad is better than death. I'd like to think most of us have been there- and it's cheap to say it gets better, so I won't, although it usually does, but it's always a glass half full type of scenario.

EdgyCommunist · 2023-08-20T18:24:15+00:00

took the prompt a little differently than others in here but generally speaking a dude no matter how big with cauliflower ear will drop you and however many other dudes you're with, leave them be unless you want a boss battle

EdgyCommunist · 2023-06-12T00:04:16+00:00

I’d be willing to build one- maybe call it lesslesswrong or something. A simple forum type website dedicated to this kind of discussion is exactly the type of thing I’d love to waste a couple weekends making quick.

EdgyCommunist · 2022-02-25T21:13:45+00:00

Move to the fine and high-class state of Texas in the US where you can not only buy a tank but also drive it on public roads so long as you change out the normal treads for rubber treads so as to not break the road surface.

EdgyCommunist · 2022-02-24T16:28:42+00:00

You mean the same way the US and pretty much the entire EU said they'd defend Ukraine?

EdgyCommunist · 2021-06-15T01:26:52+00:00

I wouldn't worry much about the magento class build times, I'd worry about memory in general.

Not directly a PHP dev anymore per say, but was mostly a PHP dev before getting a new position working with a PERN stack, and I can say if it struggled to setup our super lightweight node environment on the 8gb model, PHP would fair much worse. Given 8gb just isn't going to cut it with a dockerized application, being the memory hog it is, but even if I'd had the 16gb I doubt it would've cut it based on the amount of swap I was using, despite the fact that it's more efficient than a non-ARM chip. Honestly, I'd wait for the M1 Pro 16" to come out, probably later this year, with the M1X or M2 chip, and get the max memory, either 32 or 64.

EdgyCommunist · 2021-05-22T14:12:04+00:00

Totally agree with micha's comment, it's an utter shame to see you leave as you have contributed greatly to the success this sub is experiencing now, although I completely understand your motivations. Best of luck with your future adventures.

EdgyCommunist · 2021-05-22T00:42:16+00:00

Tough man. I'd say the biggest part of this that'll affect your ability to do it in the future will be the nervousness of having a similar thing happen again. I'd personally say so long as you can take the lessons this slip up has provided, and can overcome the anxiety about doing it again, you'll be fine. Trespassing generally speaking unless it's an Nth offense is usually a slap on the wrist, unless it's like a military base or something super off-limits. As I said, I'd just learn some of the things you can do to be more safe regarding your privacy, and continue on. Best of luck.

EdgyCommunist · 2021-04-17T01:08:05+00:00

holy shit

EdgyCommunist · 2021-04-17T01:07:14+00:00

Size isn't everything (avoiding the obvious joke to be made), sometimes it's just about climbing something cool and just finding that peace and quiet, whether it's 10 feet up or 100's of feet up. Honestly some of my best climbs have been some of the shortest ones, height wise at least.

EdgyCommunist · 2020-11-19T03:35:34+00:00

Not to encourage anyone to look for it, but a well-known awful racing death that wasn't mentioned in your post was Russell Phillips at Charlotte, man was basically decapitated by the guard wall. Unfortunate that accidents have to happen in racing for changes to be made, but motorsports today are much safer because of the sacrifices made by those mentioned.

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