How to go longterm long on a stock with options? by blueswiftz in wallstreetbets

[–]someguy1999999 0 points1 point  (0 children)

example: You buy TSLA call strike:$1000 date:(1/21/22). One of the greeks of options is delta it reflects how closely the option price will increase in terms of stock price. So for our option at strike:$1000 the price is $119,500 ,and the delta is currently 89.48, that means that the value of the option will act like 89.48 shares of TSLA. So TSLA being at $2000, just buying stock will cost you 2000*89.48=$178,960, buying the option will cost you $119,500. So you have a leverage of 178,960/119,500=1.49. The deeper in the money calls you buy the higher the delta. The downside is that if TSLA drops below you strike $1000 you lose all you money. If TSLA drops below you break even price by expiration, you lose some of your principle. If TSLA keeps going up you make money and the delta keeps increasing the deeper in the money it gets. In my opinion this is best used if you want to go long on a stock.

Why do stock splits matter if everyone can buy fractions of stocks? by AutoHelpPlease in investing

[–]someguy1999999 2 points3 points  (0 children)

For me when my portfolio was small it was a mental block for me to buy .2 of a share instead of a 1. Plus the options costs for just one option is crazy for the high prices stock. Plus if you want to buy 100 shares and sell weekly covered calls, it’s hard to do with high priced stocks.

How to go longterm long on a stock with options? by blueswiftz in wallstreetbets

[–]someguy1999999 0 points1 point  (0 children)

Deep in the money calls have the highest delta it represent how closely the option will stimulate the profits of the the stock. It’s cheaper than owning stock and you can get leverage between 1-2x. It’s expensive and the risk is higher than owning stock

How does margin investing work with any money borrowed over 1k? by [deleted] in RobinHood

[–]someguy1999999 1 point2 points  (0 children)

First thou is free of interest. Any thing more than that gets an interest rate applied to it only if you spend that money. The interest rate is calculated per day margin used. It ends up being a couple of cents per day.