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Fun fact: If you had bought a call yesterday for $300, it would now be worth $3100. 1000% return on investment. Yesterday I bought a chipotle call (because of
by fersho311 13y ago
Fun fact: If you had bought a call yesterday for $300, it would now be worth $3100. 1000% return on investment.
Yesterday I bought a chipotle call (because of earnings release) for $600 and now its worth $3600
Now that the political budget debate is over, I think we will see a spectacularly volatile movement upwards and strong earnings will push stocks to absurd prices way over any reason. The best thing to do is to ride the wave and make some extra cash. It doesn't make any sense (price vs earnings), but as long I'm making money thats okay.
Do keep in mind that Google did not jump $130/share because its earnings was spectacularly better than ever. It made this huge jump because the market is headed for another bullish run and the market is crazy.
I trade stocks on the side for fun, and I blog about my trades here: http://songzmoney.quora.com/ http://songzmoney.quora.com/
- deleted 13y ago[deleted]
- junto 13y agoNewbie here. How and where can you 'buy these calls'?
- fersho311 13y agoAny trading platform will let you buy calls and puts. They are called options. Here's a few examples: scottrade, ameritrade, etrade. I personally use ameritrade.
- dennisgorelik 13y agoDon't buy, unless you want to gamble away some of your cash.
- Hermel 13y agoGoogle has a tradition of jumping up to 10% in either direction after quarterly releases. It might be worthwhile to buy both, put and call options before a release and then profit from the one that goes into the money.
- ilyanep 13y agoI believe that's called a butterfly. I don't know how common they are but I've certainly heard of people doing this on stocks they believe will be volatile.
- fersho311 13y agoTried that last quarterly earnings season, and the stocks started off the day at -5%, then grew and at the end of the day ended up at -0.8% Lost $2000. http://songzmoney.quora.com/Placing-the-best-bet-on-Google-earnings-today http://songzmoney.quora.com/Placing-the-best-bet-on-Google-e...
- MarkMc 13y agoLet's say you play blackjack and are dealt a 20. If you then hit and get an Ace, does that mean it was the right decision?
- neuralk 13y agoThe "right" decision depends on more information. For example, hitting on 20 is the right decision if you are betting no money or money that isn't your own.
- damon_c 13y agoIt was the right decision if you had been counting cards and you had information that the next card would be an ace.