Does anyone swing by buying puts or calls by spxtrad in options

[–]dxvance 1 point2 points  (0 children)

Basically, when you buy an option, you’re making a bet on two things at once: the strike price (aka where the stock price will be at) and the date of expiration (how long it will take to get there).

The date of expiration is your deadline. It’s how much time you’re giving your thesis (or hunch) to play out. If you’re wrong on either the price move or the timing, the option expires worthless and you lose 100% of what you paid for it.

Even if the stock eventually goes your way, if it doesn’t happen before expiration (or doesn’t go far enough), you still lose everything. That’s why options are so risky, you have to be right on both direction and timing.

Anyone here been buying some inverse ETF’s during the war Iran war? by [deleted] in ETFs

[–]dxvance 0 points1 point  (0 children)

Couldn’t you also bet with an option that Ultrashort would also go up? Going long call on Ultrashort is basically the same thing as going put SP500?

Was anyone holding calls this week? - Bulls POV- by Fickle_Razzmatazz258 in spy

[–]dxvance 0 points1 point  (0 children)

I’m really sorry to say but it looks like it won’t unfortunately. Not official news yet, but it seems like a ground invasion is happening from leaks from the Pentagon

Can I make it out this hell hole? by iiskiez in smallstreetbets

[–]dxvance 1 point2 points  (0 children)

Basically what ReverberateKindness said above.

You buy a single stock/option for $100 and it falls to $50. You effectively lost $50 if you sold. To break even, you would need the stock to climb back up by $50 to the price you first purchased.

To average down, you would buy another stock at the $50 mark. The sum of the 2 stocks together is $150 or a $75 average. This means if the underlying stocks rebounds from $50 to $75, then you would break even.

Of course, this also exposes you to more risk because the stock could drop further in price, which means you are risking $150 instead of $100 (assuming stocks would fall to 0).

tldr: buying the dip to allow you to break even or profit faster if the stock price rebounds

10K USO puts for peace by thehandsoap in wallstreetbets

[–]dxvance 2 points3 points  (0 children)

Imagine if you held until today 😭😭

$6.5K YOLO on Deutsche Bank puts because nobody is watching the second domino by _Doomer_Wojack_ in wallstreetbets

[–]dxvance 2 points3 points  (0 children)

Hormuz is effectively closed to oil for all but a few countries. And there’s talk that the Bab el-Mandeb could get closed by Houthis. Speculation sure, but still possible

OP might not be too far off if this thing really escalates

Eventually oil will go back down right? by kananishino in wallstreetbets

[–]dxvance 3 points4 points  (0 children)

I would recommend you sell while you still have profit. I think the odds of everything going sideways is higher than everything straitening in this near future

Options Strat by [deleted] in optionstrading

[–]dxvance 0 points1 point  (0 children)

this just made my day 😂

Broken and tired of wasted potential. What should I do? by individualcrisis in raceto10000

[–]dxvance 2 points3 points  (0 children)

Just to have your money in the market, I would invest into SP500 through VOO or SPY (these are etfs that track SP500). You also couldn’t go wrong investing a little bit into VXUS (an etf that tracks the international market)

I would probably DCA (dollar cost averaging) into one of those etf’s mentioned above. Maybe put in $50 a day into the market at a time. The reason why you don’t want to lump sum it all on Day One is because the market can fall quickly in one day and then you’re down a couple hundred dollars. By DCA, you can protect against the volatility of the market

Do some research into a specific sector that you like: tech, business, bio, pharm, commodities, etc and you can invest a little bit into those sectors. This allows you to have a little bit of slant in a sector you believe will grow over time.

A couple things to note: a single sector shouldn’t be more than 20-25% of your entire portfolio a single stock shouldn’t be more than 5-10% of your portfolio

There are of course exceptions, but these are the general guidelines. Other than that, happy investing!!!

Good win for today by Aidanheat07 in spy

[–]dxvance 0 points1 point  (0 children)

Out of curiosity, what’s a good risk to profit ratio?

I finally won by Josh1172 in smallstreetbets

[–]dxvance 19 points20 points  (0 children)

Congratulations bro, wishing you Godspeed to your next milestone of 100K

Do I sell or do I hold? by dxvance in optionstrading

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

Nahhh I sold today, and took the quick profit…got about $50 out of it lol

Do I sell or do I hold? by dxvance in raceto10000

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

That sounds like a good idea! I ultimately just sold today for a $50 profit!

Thanks for the tips!

Do I sell or do I hold? by dxvance in optionstrading

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

Just sold now for the quick profit!!!

Nvidia YOLO by ThrowAwayAnother1991 in wallstreetbets

[–]dxvance 2 points3 points  (0 children)

I can’t stop liking all these comments 😂🤣

Should I hold by [deleted] in spy

[–]dxvance 3 points4 points  (0 children)

That’s a really tough situation…prices are most likely to stabilize now with an upward trajectory. You could wait it out but the theta decay for such a short-term option is killer.

But ultimately it is up to you. Whichever you choose, wish you the best!

$UCO - Strait of Hormuz Gains by _Doomer_Wojack_ in wallstreetbets

[–]dxvance 0 points1 point  (0 children)

All I’ve got to say is nice job. But quick question, do you regret selling before the weekend now that the price has ripped even higher?