Streaming Service (BK2432) Stock Forum and Discussion

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3189.325
+20.059+0.63%

Trading Jul 25 12:45 ET

3193.383High3101.996Low

Constituent Stocks: 10Top Rising: FUBO+6.16%

DouGiee

16 minutes ago

$Apple(AAPL.US)$
Be careful of Demark 9 guys... possible 3 more days of bearish

Big tech earnings disappoint, US stocks dips: Who's the next hope?

Warren Buffetless

22 minutes ago

Who even use this app

$FuboTV(FUBO.US)$

CasualInvestor

39 minutes ago

How options trading pays

Early part of the year 2024 made a calculated risk to naked short $Tesla(TSLA.US)$ $Apple(AAPL.US)$ .
As its LEAP (a long duration), there were some ups and downs which even have margin calls scare.
Time for an important message.
Disclaimer Options are not for everyone. If you are new and want to learn, read up more and understand the risks 1st. Stay to the buy side of Calls and Puts. Selling options especially naked are High in risk and losses are substantial.
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Share your most exciting options trade

151334572 : Turns out you're the short guy they talk about every day

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CasualInvestor OP 151334572 : You need to understand what does shorting a stock means. As I did the opposite.
Technically it’s borrowing a security whose price you think is going to fall and then selling it on the open market.
I did the opposite as I’m hopping for the price to rise so that I can earn from the premium. Meaning I sold a put and kept the premium from the contract and plan to hold it till it expires.

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CasualInvestor OP 151334572 : ChatGPT response to make it clearer for you.
When you sell a naked put, you are not shorting a stock directly. Instead, you are selling the right to someone else to sell you a stock at a predetermined price (the strike price) by a certain date (the expiration date). Here's how it works:
1. **Selling a Naked Put:** When you sell a naked put option, you collect a premium from the buyer. You are obligating yourself to buy the underlying stock at the strike price if the buyer chooses to exercise the option.
2. **Potential Obligation:** If the stock price falls below the strike price, the buyer of the put option will likely exercise their right to sell the stock to you at the strike price. This means you would have to buy the stock at the strike price, potentially at a higher price than the current market price, leading to a loss.
3. **No Initial Stock Position:** When you sell a naked put, you do not own the underlying stock initially, nor are you borrowing it to sell (as in short selling). You are simply selling the option, not the stock itself.
In summary, selling a naked put involves taking on the obligation to buy the stock if the option is exercised, whereas shorting a stock involves borrowing shares to sell them with the expectation of buying them back at a lower price.

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ZnWC : Wish you good luck. Hope that it won't go down below 150 before

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CasualInvestor OP 151334572 : Hope it explains so you won’t anyhow push your unhappiness to others.

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