I am a moron

Willye · Jan 25, 2013

So i have no clue about stocks none options no clue so can someone explain how people got rich off nflx ? I saw somewhere someone made 150 k on $483 because they placed calls ?

mickj · Jan 25, 2013

No expert here but calls allow you to multiply your return but can also expire worthless.

HuskerFan1 · Jan 27, 2013

im by no means an expert either (its something id like to get more knowledge on, options) but im guessing someone bought like 165 calls on nflx stock when it was trading at like 60 a share a few months ago...that was really close to the 52 week low and if you knew they were on track to have a blowout Q or just wanted to gamble and you bought crazy calls so far out of the money 160's or 165's for peanuts i could see how someone could make a bundle...i dont know about 150k but definitely a good return on your investment

SmallDaddy · Jan 27, 2013

on calls and puts or whatever they are, can you lose more than what you put up?

Like how the guy made 150K on 483, could it have went the other way? Losing that much on that little?

mickj · Jan 29, 2013

calls and puts no. "On Margin" yes.

dtmad · Jan 29, 2013

The worst that can happen is that you lose your entire "bet" when the call expires worthless. Trust me. I am an expert in this. The calls I buy expire worthless all the time.

CHOPTALK · Jan 29, 2013

Sell puts.
that kind of makes you the bookie instead of the player.
You are basically betting that Joe Blows calls are going to expire worthless.

DesertNole · Feb 9, 2013

CHOPTALK said:
Sell puts.
that kind of makes you the bookie instead of the player.
You are basically betting that Joe Blows calls are going to expire worthless.

Selling puts is a bullish position, betting that stock price will not go down.

CHOPTALK · Feb 10, 2013

DesertNole said:
Selling puts is a bullish position, betting that stock price will not go down.

Your right I was thinking about covered calls

PatsFan1283 · Jul 25, 2013

Couldn't find anything else to bump and didn't want to start a thread...

Anyone got any good books or sources on covered calls? Mostly looking for deep OTM using blue chips (although not really stalwarts like a JNJ or XOM, something I can charge a decent premium for)

Most of the sources on the web don't use real life examples and are crap I've found.

Murphy8276 · Jul 25, 2013

good choice of threat title to bump Pats puff_>>

-murph

I am a moron

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