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Call Option buyer
nipper
post Posted: Feb 1 2021, 03:39 PM
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Posts: 8,696
Thanks: 2713


One way to make a bit of pocket money (GET THE TRADE RIGHT) ... (THEN MONETISE)


QUOTE
You will see he bought 50,000 shares at $14.8947 and 500 call options at 20 cents, that's twenty cents.

You will also see that his portfolio is now worth $46,034,545.47.


How do we know this?


Because he just posted the screenshot of his portfolio on https://www.reddit.com/r/wallstreetbets/






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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
arty
post Posted: Apr 26 2012, 09:41 AM
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In Reply To: 7's post @ Apr 25 2012, 09:01 PM

an option confers the RIGHT, but not the OBLIGATION, to buy or sell at the strike price.
Unless you explicitly exercise the right on (or, in the case of American-style options, before) expiry, the options will lapse and the seller will have received the premium for free.



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I trade daily, but I am not a licensed adviser. Whether you find my ideas reasonable or not: The only person responsible for your actions is YOU.
I follow two rules: (1) There are no sacred truths. All assumptions must be critically examined. Arguments from authority are worthless. (2) Whatever is inconsistent with observed facts must be discarded or revised. We must understand the Market as it is and not confuse how it is with how we wish it to be. (inspired by Carl Sagan)
 
0007
post Posted: Apr 25 2012, 10:43 PM
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Posts: 784
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In Reply To: wolverine's post @ Apr 25 2012, 09:15 PM

Wolverine, many thanks

 
wolverine
post Posted: Apr 25 2012, 09:15 PM
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In Reply To: 7's post @ Apr 25 2012, 09:01 PM

Unless you have completed auto-exercise paperwork the option will expire (worthless).



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TOO MANY CHIEFS

NOT ENOUGH INDIANS

Said 'Thanks' for this post: 0007  
 
0007
post Posted: Apr 25 2012, 09:01 PM
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Posts: 784
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Can anyone clarifies the following: A buyer buys a call option expiring within 2 months. The option keeps on going up and is well in the money. Let us assume the buyer does nothing when expiry times arrives. What happens next?

 
 



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