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Longing and Shorting

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Thread replies: 12
Thread images: 2

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Is it worthwhile to long/short a stock and cover them with calls/puts? (Or to simply make spreads with options)
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>>2221430

There is a BAT ICO around the corner and fags still care about options lmao.
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>>2221430
You've made threads like this before and I'm sad to always see it go unanswered :(
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>>2221687

Thinking people will switch browsers to watch MORE ads.

Have fun holding those bags.
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>>2221718
I know right
I guess the nu-biz only cares about shit they cant control
>>
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Options are priced in a way that makes this situation unprofitable, otherwise everybody would be doing this. If you have a stock you can always hedge the investment with a call or put (depending on what risk you are dealing with)

If you happen to find an underpriced call or option you can theoretically go long/short while purchasing puts/calls on the underlying and turn a profit... But again, not likely you'll find it that cheap.
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>>2221966
but aren't these low volatility times good for options?
it sure is more pricey but it also gives more leverage if you don't have that much money in the first place. I am under $5000.

But ya, I agree that hedging is the best use for them.
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>>2221430
AMD, Micron, and Intel are worth buying because of things like Computex happening soon and you buy and sell the hype.
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>>2221966
What are you talking about? If you know what you're doing options can be extremely profitable...but so can stocks. But with the options I can make money even if the stock market stays where it is, or bet on volatility, etc., no arbitrage needed.

OP are simply asking us if fucking covered calls, puts, or spreads are profitable? Of course they are, that's the point?
It's like you're asking if the stock market is profitable..
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>>2222131
I'm asking if it's a good strategy rather than just going long (short) plain and simple.
In other words when would it be a better strategy to go long with a covered call rather than just going long? In my opinion it would make more sense a covered call on a short term basis like a month or 2
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>>2222003
>>2222171

Man, you should really phrase your questions a little more clearly.

If you want to write covered calls then it absolutely is a good thing to do just to collect the premium. But there is always the risk that the stock can take off and that covered call you sold can be excercised (unless you buy it out but even then there are strategies for reducing the potential loss). So yes, covered calls and puts are a good way to make extra cash.
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>>2222111
Wow quadtrips tells the truth
Thread posts: 12
Thread images: 2


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