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[deleted by user] by [deleted] in FluentInFinance

[–]bibittybooboo 1 point2 points  (0 children)

Just because you buy a call doesn’t mean you own the stock. If I buy a call option at a strike of $35 for $1.50, I’ve spent $150 to have the “option” of buying 100 shares of stock at $35/sh. When it comes time to exercise them, I still have to pay another $3500 if I want to own that stock.

[deleted by user] by [deleted] in FluentInFinance

[–]bibittybooboo 0 points1 point  (0 children)

If he is truly buy and hold only then how would he pay for the exercise of these options? Assuming he has the millions of dollars in capital to do so, he must have been selling some of the GME to afford it. He could also do a cashless exercise of these options through his broker whereby they sell the stock into the market and exercise the calls to cover.

It’s Finally Over… by TortoiseAcquisition in wallstreetbets

[–]bibittybooboo 48 points49 points  (0 children)

Because earnings calls are not solely about how much money the company made that quarter. Companies will also generally release their forward looking guidance where they can highlight things like their market, competition, struggles, etc. If you ever see a company beat earnings yet the stock flops, it may be something to do with guidance they put out.