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chefjeffb 1 point ago +1 / -0

A call/put option is a promise to buy (call) or sell (put) a stock at a certain price

You pay a premium for buying each and based on the amount of time needed until expiration, you pay more for more time

So, let's say Boeing, for example

You buy a 212.5c for 50 bucks, you take the 50 and turn it into .50 (because that is how options are priced, the .50 is per share for 100 shares so 50 bucks) and add it to the original call

So, to break even, you need Boeing to break 213

This is the simplest explanation I have

Do not ever sell calls naked (without owning the shares) because that is how you hear about people killing themselves when they wake up to 100K plus debt

Buy to open = you're opening a trade by buying a put or call

Sell to open = you're opening a trade by selling a cash secured put or a covered call (you own the shares)

A strategy to selling is buying 100 shares, immediately selling a covered call above what you paid, collecting a premium, and then having the stock go above your covered call so it gets assigned and you lose the shares

An great example is as follows: you buy Stock A for 45 bucks a share x 100 shares, you sell a covered call at 55, collect the premium and wait. Two weeks later, the stock hits 58, you get assigned, and sell all of your shares at 55

So not only did you collect a premium, you also collected around 1K for the sale, and you don't have to hold the shares anymore

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chefjeffb 1 point ago +1 / -0

Also, you want to hedge on a crash, go long on XRT puts

Pre-COVID: 40

COVID with insane printing: 110

Currently: 90

Retail industry as a whole gets whacked first when rates go up

You could also try TMV calls to go with Friday's CPI numbers

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chefjeffb 4 points ago +4 / -0

This is absolute bullshit

Hedge fund managers are being shit heads right now because they know young people will absolutely throw the house at GME because those people have peanut sized brains

You want to hedge against overvalued tickers? Buy cyclical or blue chips that are down

Literally look at BA, down almost 200 from its pre-COVID levels and the airlines are starting to ramp up again (China cert last week)

Fuck what these idiots are telling you to do and do what is smart, go long on pre-COVID sluggers

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chefjeffb 1 point ago +1 / -0

I'm assuming the redemption squeeze (like with many deSPACs) already happened here so you're likely good to buy now.