Options

Yeah they're in the money and worth 38 cents so you can just sell them and take the cash.

Who gives a fuck about Investopedia simulator.

>>1812906
Looks like you bought a put on AMD at $14 that expires on Feb 24. That means you can sell AMD for $14 on Feb 24.

The option is worthless if AMD is over $14 on February 24 (because you can sell on the stock exchange instead of executing the option). Considering that AMD is already over $14, and it's been trending upwards, I'd say sell it.

>>1812906
How can he purchase at $0.12 when the stock price is $14.00?

>>1812906
you made 200% with a risky option on a super volatile stock and the option expires soon.

Just sell and take the cash.

>>1812906
>asking if you should take 216% profit

Any books on options? High risk, high reward trading/investing?

If you're serious about learning to trade options then watch Tasty Trade. They've been doing it for 30+ years, first as market makers in the CBOE and then as retail traders. I don't know of anywhere else you could learn more about it.

And It's not high risk. You can control precisely your risk and be a much better trader than just buying long stock alone. It's not just options they do though. Futures, currencies, bonds, everything, but the core of what they do is options.

>>1813128
Thanks. I'm planing to invest around 10% of my future cash flows in high risk investments.

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>>1813029
He didn't buy AMD at $0.12. He bought a put on AMD, which means he bought the right to sell AMD at $14 on February 24.

>>1813074
If you're interested in the technical mathematics of options, actuarial exam 2/FM has the basics (plus a bunch of shit on annuities). Actuarial exam 3/MFE has much more advanced stuff, including binomial option pricing, and the black-scholes formula. I might still have the study guides actually.

Basically, options give you the option to buy or sell a stock at a certain price on a certain date. Options are basically insurance, since you can use them to counteract big price changes.

For example, if you buy a stock, you can buy a put on the stock. That way, if the stock price nosedives, you can sell it with the put. It acts as a price floor. On the other hand, if the stock price skyrockets, the put becomes worthless, because you'd rather just sell it on the open market.

Since options are insurance, their value is determined by the volatility of underlying asset.

>>1813254
Thank you.

During my analysis of stocks I see countless stocks overvalued or undervalued. But still not worth to put money on it because the risk is to high in my opinion and after the correction they are not worth it to hold. Another thing is that in my country you have to pay tax on your porfits on the stock market. It is just not worth it.

It could be worth it if I try to multiply my profits of those corrections. Taking huger risks for huge profits.
So I'm researching right now what options I have to make a profit with those overvalued/undervalued stocks.