$AMC Entertainment (AMC.US)$ I hope new apes will finally le...
$AMC Entertainment(AMC.US$
I hope new apes will finally learn not to buy options on heavily manipulated stocks. Instead just buy and hodl until hedgies burn themselves out.
I hope new apes will finally learn not to buy options on heavily manipulated stocks. Instead just buy and hodl until hedgies burn themselves out.
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allen kidd : can you explain please? I'm a new ape
moomo0 : Learnt it on $Support.com (SPRT.US)$ I got burnt
102161726 OP allen kidd : Hope this helps, otherwise, you have to learn more on youtube. Just search option explained.
102161726 OP moomo0 : Ouch. While it is a stock that is also heavily shorted.
102161726 OP : holy, the long comment I posted didn't when thru.
102161726 OP allen kidd : Super short version. Hope this get posted
option is like a bet with seller (trader, Hedgies for example) and each option is equal to 100 stocks.
buy call for 50 and stock rise to 55.
profits, is 500 dollars. But you paid a premium for it. Net profits 500-premium(example 300), you profited 200.
same goes for a put option which you bet it going down instead.
Think of it as buying insurance for normal stocks. It protect you from excessive losses while giving you an unlimited upside.
But if a stock is heavily manipulated, Hedgies can just sell you an option, and manipulate the price which your option become invaild. Taking your money along with it. which Hedgies will use to manipulate future options and the cycle goes on.
102161726 OP : I'm sad, comment didn't when thru again.
102161726 OP allen kidd : If you can, go youtube and search option explained. Maybe plain bagel cam help you with the explanation
allen kidd : thanks, I'll do more research.
allen kidd : The only thing I don't understand is how do you know if you're buying an option or a stock.
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