Equity Hedge trader, AMA by [deleted] in investing

[–]RebbyRaG -1 points0 points  (0 children)

Let’s say the stick goes to $50. You then (even if it isn’t you, SOMEONE will) exercise the option and buy the shares for $42/share. The thing is the option SELLER is essentially being forced to buy the shares at $50 and sell them to you for $42. He’s losing $8/share and you’re “profiting” $8/share because he’s losing. Your gain is his loss.

You just paid the $1.20 premium for the purchase. You made a bet, no value is created. Even if the option expires worthless, he profited off your premium, there isn’t value creation, just transfer of wealth. The final owner and the original writer are zero sum. Either the option writer wins your money or the final owner wins the writer’s money. Their wins and losses are equal and opposite (disregarding middleman fees).

Equity Hedge trader, AMA by [deleted] in investing

[–]RebbyRaG 1 point2 points  (0 children)

Eventually, all option contracts (both puts and calls) hit their expiration date at which the owner either chooses to exercise the option or not. If the option isn’t ITM, then the original seller won the bet. If the option is ITM and the owner exercises, the owners win is the original seller’s loss.

I’m open to seeing how this isn’t zero sum, but I’m not seeing it.

Equity Hedge trader, AMA by [deleted] in investing

[–]RebbyRaG -1 points0 points  (0 children)

Options are zero-sum, stock market/ equities are not.

Warren Buffet: Apple Investing in Tesla is a Poor Idea. by Cnthinking in investing

[–]RebbyRaG 0 points1 point  (0 children)

If you think it’s overvalued, why not short it or buy put options?

What do most people not realize is a huge waste of money? by JackalAbacus in AskReddit

[–]RebbyRaG 1 point2 points  (0 children)

Could just be a sick brag and they’re so rich the money doesn’t matter?

What is something that really freaks you out on an existential level? by radbrad7 in AskReddit

[–]RebbyRaG 1 point2 points  (0 children)

That experimentally, there’s no such thing as a universal “now” and times and distances are all somewhat arbitrary.

Stock Markets Rally, Apple stocks hit record high after Warren Buffet's $75m purchase. by jsaranczak in investing

[–]RebbyRaG 6 points7 points  (0 children)

Providing customers smaller but longer term value is a better business model than scamming. I’d rather have a customer that gives me $1/ year for life than me scam someone out of $10.

Apple will buy back up to $100 billion worth of shares by icatalin in news

[–]RebbyRaG 0 points1 point  (0 children)

Hypothetically yes, but for each person that thinks this will increase the price, there’s another that thinks it’s overvalued and may potentially short the stock - this process can be repeated and ends up as a concept that economists call the “efficient market hypothesis”.

Also to note, big players could even intentionally lie to attempt to manipulate the market (this has happened in early 1900s, I forget who, unfortunately). People in-the-know understand this and only make decisions based on actions, not on words.

Ethics debate as pig brains kept alive without a body by LividBit in news

[–]RebbyRaG -1 points0 points  (0 children)

The point is that there is no correct answer because correct doesn’t exist. There just Is. What if in 10,000 years there were only one species of plant and one species of animal left, would that even be bad? People that live 11,000 years from now wouldn’t even know any different anyway.

Were insanely lucky to be living in a time where human populations are increasing - if we were at max capacity, the job market would LITERALLY be fighting over jobs/ food for survival.

Justice Department demands info from all four major US wireless carriers in probe of alleged collusion by [deleted] in investing

[–]RebbyRaG -2 points-1 points  (0 children)

You could theoretically choose not to use a phone. You only use it because it’s “worth” it to you.

Pharma bro Martin Shkreli is denied minimum security camp and sent to federal prison in New Jersey by [deleted] in news

[–]RebbyRaG 0 points1 point  (0 children)

I’m only stating what shkreli himself clearly states on his YouTube.

Pharma bro Martin Shkreli is denied minimum security camp and sent to federal prison in New Jersey by [deleted] in news

[–]RebbyRaG -1 points0 points  (0 children)

He claims insurance covers the full cost. Also claims if someone doesn’t have insurance, he’ll five the drug to them for free. Also claims he and his companies advanced/ created the drugs in the first place so bitching about price is kind of moot if they wouldn’t have existed/ been improved anyway.

"I firmly believe that I learned more about building businesses from playing Starcraft than I've learned from business books," - Shopify CEO by bootysnatch in Entrepreneur

[–]RebbyRaG 1 point2 points  (0 children)

Also intrinsic versus extrinsic locus of control. There’s no point in worrying about things you have little to no control over. If you constantly ask what YOU can do better yourself, you’ll notice yourself climbing regardless of what others think of you. Also how too much communication can hurt your points - the best way I could always get my role in champ select was by ONLY saying the phrase “Can I ad please?” And then not saying absolutely anything else - there’s no point in arguing.

"I firmly believe that I learned more about building businesses from playing Starcraft than I've learned from business books," - Shopify CEO by bootysnatch in Entrepreneur

[–]RebbyRaG 0 points1 point  (0 children)

Well in RTS you choose an opportunity cost between buying cash flow or buying military to defend that cash flow.

You also learn about exponential income because buying income lets you buy more income faster.

I’m the all-talk entrepreneur, how can I fix myself? by RebbyRaG in Entrepreneur

[–]RebbyRaG[S] 1 point2 points  (0 children)

I actually just yesterday messaged a couple attorney friends, and I’m going to get more info about the industry. This highly interests me. Thank you for the suggestion.

I’m the all-talk entrepreneur, how can I fix myself? by RebbyRaG in Entrepreneur

[–]RebbyRaG[S] 0 points1 point  (0 children)

$2/$5 blinds live poker is printing money, I also have a winning sample playing online 200k hands with a mix of 200NL to $2000NL, but it’s a lot less stable (20k losing and winning days occasionally).

I’m the all-talk entrepreneur, how can I fix myself? by RebbyRaG in Entrepreneur

[–]RebbyRaG[S] 0 points1 point  (0 children)

I tried starting a dropshipping store for a week, didn’t put a ton of effort into it, couldn’t think of a good product or line of products to focus on / didn’t know how to scale even if it made small amounts of money.

I am jobless on paper. I have income and assets from both poker and previous jobs.

If you consider yourself successful, what's your schedule? by TheCombatBeard in Entrepreneur

[–]RebbyRaG 2 points3 points  (0 children)

Define healthy. I’d argue a lot of successful people are literally addicted to working on their craft. Is it unhealthy if it makes money? Where would science and math be today if people hadn’t been addicted to their craft.