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I just re-read your message and thought of something with regards to the 30 stocks you are playing with. Suppose you have $10,000 in AAPL for 52 shares. You c
by marketgod 8y ago
I just re-read your message and thought of something with regards to the 30 stocks you are playing with.
Suppose you have $10,000 in AAPL for 52 shares.
You can buy AAPL Jan 2019 195.000 call for $1170 for 1 contract.
Now suppose you plug this option in here, http://www.optionsprofitcalculator.com/calculator/long-call.html http://www.optionsprofitcalculator.com/calculator/long-call.... and you will see if AAPL goes to $200 for July 28th you would be 30% in profits whereas your shares would only return $8/$192. You can also buy puts when you think it's too high instead of selling the contracts so this way you can arbitrage.
This might work for you as well, http://www.theoptionsguide.com/long-straddle.aspx http://www.theoptionsguide.com/long-straddle.aspx
Edit:
You can also sell puts every week for the shares you hold and just collect premiums instead of holding dividend paying stocks.
- icedchai 8y agoCool! Thanks! I will look into this more. I know there is big $$$ in options but it has always struck me as risky... I know, risk vs reward...
- marketgod 8y agoI just posted a thread, maybe you have some insight, not sure if this is allowed on here: https://news.ycombinator.com/item?id=17270396 https://news.ycombinator.com/item?id=17270396