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10baggerbamm : I'm losing all of my Tesla... 120,000 shares are getting called away today what a shame...

RonaIdo 10baggerbamm : What does that mean “called away”?

10baggerbamm RonaIdo : so an options you have the ability to buy a call meaning that you're going to pay a premium to bet that a stock is going to go up to a certain strike price or beyond it in a certain period of time frame and that combined with the time value the volatility premium determines the price of the call option.
you think the stock's going to go up and make a big movie by calls
if you think a stock is going to tank same thing you can buy a put you figure out the price that you think it's going to fall too how quickly it will fall and you pay a premium betting that a stock is going to fall and if you're right you make a lot of money

10baggerbamm RonaIdo : statistically 9 out of 10 times the people that buy puts and by calls they lose their money they expire worthless their options because the stock didn't rise enough quick enough to the level of their strike price where they thought it was going to go to or it didn't fall quick enough far enough in the time period that that option would be open it would be alive it wouldn't be expired.
so very seldomly do I make bets betting a stock will go up or go down using options because statistics show 9 out of 10 times you lose your money.
so what I do is I sell covered calls so if I own a company let's suppose it's I'll pick an arbitrary price $20 every week I go out and I give somebody the opportunity to take the stock away from me at maybe $20.50 maybe $21 and I get paid a premium it might be 50 cents it might be 30 cents might be 70 cents might be a dollar it varies so I'm guaranteed to make money there's that word that you can never say an investing right well you saw covered calls you're guaranteed to make money because you get that premium right up front it's yours to keep.
the downside is if the stock goes above what's called the strike price which is what you're giving somebody the option to buy it from you at they take that stock from you so Tesla I had strike prices of 15 and 1/2 and 16 dollars on tsll and you can see where it is it's 18 bucks 18 and a half so today at 4:00 I'm going to get exercise I'm going to lose my stock and I only get the 15 and a half into $16 they get everything instant profits they've made on their money because this is the one out of 10 times where they beat the house.
so I had covered calls going into the election to try to protect principal in the event Harris won and I made money but I left a lot on the table I mean hundreds and hundreds of thousands of dollars.

10baggerbamm RonaIdo : people that sell puts and cell calls typically outperform people that just buy and hold by quite a bit.
and this has more to do with the fact that statistics are on your side you're basically the casino in those instances.
when you have these major breakouts like happened since the election you lose in a very big way you don't lose money but you lost all that upside.
my suggestion is you go on moo moo they have excellent educational understanding of options just use that little search feature understanding options explaining options and you can see all the different categories and spend the time to learn because it will generate a lot of money for you over time you just need to understand that there are instances that can be very painful which is what happened this week to me because I lost all of that shark move up

Muye 10baggerbamm : 12万股，真厉害啊

RonaIdo 10baggerbamm : Woah didn’t expect a full fletch explanation but thank you. So you have -120,000 shares right now? Thats scary

10baggerbamm RonaIdo : it's not scary I mean it's all relative to what your portfolio is right and I'm at a profit I just gave up the majority of The  recent move. so everything that you see happening somebody else's profiting from because I sold calls they bought calls betting the stock was going to go up so they're right I'm wrong I still made money, they made a killing.

RonaIdo 10baggerbamm : I see, I gotta learn options soon, always get burn buying blindly