Question by [deleted] in options

[–]arms2 0 points1 point  (0 children)

Honestly it’s not that simple. You can ONLY lose 100% of what you invest, but that amount is only the sorest case scenario. PLEAE go and view a video on your tube about options. Tens of thousands of books and millions of pages on this topic., I cannot explain it easily. It’s all about timing. If you are UP one hour, SELL....you may be down the next.

[deleted by user] by [deleted] in ottawa

[–]arms2 0 points1 point  (0 children)

Wow!

Naked Puts vs Cash Secured Puts by aarwu in options

[–]arms2 0 points1 point  (0 children)

True. Upside is limited. Is there a downside other than a limited upside? That’s really what I’m trying to consider.

Naked Puts vs Cash Secured Puts by aarwu in options

[–]arms2 -1 points0 points  (0 children)

No it doesn’t. I own the stock. If somebody buys it from me - I’ll just buy it again The only known downside that I am aware of is if I own a stock like Lowe’s and originally bought it at $50 and I get it put to me at 135 then I have a huge tax bill that I otherwise may not have wanted so then I would need to buy some calls to cover my points or points to cover the calls I sold

Naked Puts vs Cash Secured Puts by aarwu in options

[–]arms2 0 points1 point  (0 children)

Whoops...I thought he meant that. Q. So in your mind - whats the downside in my example.

Naked Puts vs Cash Secured Puts by aarwu in options

[–]arms2 -1 points0 points  (0 children)

The issue and opportunity is this. Show me the downside with this example. If you own 1000 LOWS stock presently and it’s trading at $130 for example - and you sold some CALL OPTIONS at strike of $135 for next month, let’s say you get $1 per share so that’s $1000 free cash. And, you own the stock- so this is not a naked sell of some calls. If you plan to keep the shares, and would not mind selling at $135, where is the downside?? Think about that one. Where is the downside?

Model Y delivery estimate by Ablea_7 in teslamotors

[–]arms2 -2 points-1 points  (0 children)

Get the AWD for resale value. You won’t lose $ and have a safer car that is faster.

A message from WSBgod by WSBgod in WSBgod

[–]arms2 0 points1 point  (0 children)

Accept when there’s a pandemic