{ "media_type": "text", "post_content": "Hey OP, bought my 1st contract this past Fri. Probably gonna lose it. $65 lesson (no biggie). Saw what was gonna happen with Sketchers. No idea it was going down that far. We'll see what happens.", "post_id": "5b547b0822e8d60013717ead", "reply_count": 16, "vote_count": 0, "bowl_id": "5acc42208c6b52001375e11e", "bowl_name": "Option Traders & Investing" }

Hey OP, bought my 1st contract this past Fri. Probably gonna lose it. $65 lesson (no biggie). Saw what was gonna happen with Sketchers. No idea it was going down that far. We'll see what happens.

Post Photo
Posting as :
works at
You are currently posting as works at

Thanks. Using Robinhood. No transaction costs.

like

I would say hitting 100x+ returns aren’t all that common, but entirely possible if you guess right. Just much bigger risk typically involved with getting that type of return (e.g - buying a put or call way out of the money and hoping it surpasses your strike price by significant amount by expiration). Generally, for that type of return, you’d be buying options worth $0.01 - $0.10 and hoping they go $1-$10 above your strike price, and in most cases, they’d probably expire worthless.

like

I usually aim for 0.5x - 3x returns, but if I get more than that it’s a plus. The hardest decisions always come when I’m trying to decide whether to bail on a trade or invest more to dollar cost average so that the stock doesn’t need to rebound as much to break even or turn a profit. Dollar cost averaging has backfired on me a few times (see other post with my NFLX trades, but still up 150k for the year).

like

^ that return of $1534 would be if AMD’s stock price went to $0 by July 27th. Not a likely scenario at all; however, if the stock went to say $14 by July 27th, you’d turn $66 into more than $132. Just wanted to put some context around that. Also, I’m sure you’ve noted options pricing varies greatly by stock due to volatility of the shares, etc. so you want to be sure you’re buying a contract which has a likelihood of turning you a profit based on the avg daily move. Contracts are generally more expensive around earnings announcements too and if there are dividend events on the horizon. The long shot bets and shorter term expirations can be likened to gambling, especially if buying out of the money strikes. Shorter term (1 week - 3 months), I like to by at or near in the money strikes so that the contract value moves more in line with the stock price movement.

like

^ np - call options on the other hand have “infinite” upside (same as stocks) but in all likelihood, you won’t hit a home run right out the gate. I take my .5-3x returns and then reinvest a very small portion of my profits into longer shot potential.

like

Anything can happen before expiration, but at this point just ride it out. Little at risk and it’s a learning experience.

like

My contract

Post Photo

I just jumped on it. Missed out on buying a contract last week for $35. Would be made $4,358 off that $35. Ugh. So I jumped on this one. At least, I'll see how to execute these.

Post Photo

I was eyeing sketchers for a rebound after the earnings release (similar to Netflix), but didn’t pull the trigger. I wouldn’t say the investment is lost just yet. Still have a week, and Netflix continued its decline after its rebound. Just remember to factor in transaction costs into your breakeven point or when you close the trade. Also be certain to close the trade if it’s in the money, unless you have the cash in your account to cover the purchase of 100 shares for that 1 contract. Brokers will automatically exercise the contract upon expiration if it’s in the money, meaning you’ll buy the 100 shares and they’ll immediately sell them for your strike price, $25.

I thought $25 was in the money. What is in the money for this contract?

If the stock is at or below $25 it is “in the money” for a put contract, but your breakeven point will be less than $24.35 ($25 strike - contract cost ($0.65) - transaction costs to buy and sell) so likely around $24.20 assuming $8 to buy and $8 to sell. All I was trying to say was if the stock is at $24.99 at expiration, your broker will exercise the option, and you’ll be buying 100 shares at $24.99 and selling them for $25 each and paying the transaction costs for the purchase and sale of the actual shares. It could technically reduce your loss if the stock is between your breakeven and strike price and the spread would cover your transaction costs on exercise. You’d just need the cash in your account to cover the purchase if that were to happen. Alternatively, you may want to close the trade before expiration or you may also be able to notify your broker that you don’t want them to exercise the option, in which case it’ll just expire worthless with no addt’l transaction costs.

$4,358 potential upside? I need to get started on options...

PWC, this is what I'm talking about. This particular contract, which expires this coming Friday, only coats $66, but you can make $1500+. I see why Options can wipe people out quickly. They'll treat it like gambling.

Post Photo

Crap. You just messed up my world, OP. I've been watching videos and reading books, but it's little details like that I've been missing. Thanks for the education.

So much for my brilliant plan. LOL!

Post Photo

That's the plan.

Related Posts

Dear friends Help me finding a job in development sector. I'm interested in Consulting space. Going through a rough phase and empty pockets have taught me a great lesson. Being unemployed wasn't a choice but mandatory to look after my family. Since, everything has reached to it's pace, I'm ready to pull up my socks for new assignments. Happy to have a quick conversation on career guidance and also shaping my career ahead. I could see people from prestigious organisations are here. Pls help.

likeuplifting

Are you finding it easy or challenging to translate your "in person" lessons to an online format?

like

Any tennis players here? Where do you go for your tennis lessons/matches and how much does it cost?

like

I am99% sure that I am going to take flying lessons. Become a pilot. As a hobby. Tell me it’s a good hobby and that I can do it. And it would be manageable on the weekends. It’s around 25k in total but yeah life is short who cares!

like

Happy new year!! Off to the races again - but not before you acknowledge the lessons learned from 2018!

likesmart

My Canvas account glitched. 4 years of classes disappeared today, including all modules (units & lessons) I created. On top of that, my planning copies I work on during the summer. 😭😱🤢😡

like

How can I create compelling essential questions for my lessons?

like

General poll: Agency with weak rep for $$$$$... or agency with good rep/creative for $$? Anyone choose $ over ❤️ with lessons learned?

like

What are the tactics used by HR while hiring an employee? He mentioned to me that I would receive the particular amount in hand. In reality, I am receiving less and the notice period he mentioned 2 months. I said that it's only one month in this role and said I would change it later to 1 month but didn't Being new at corporate and this is the first lesson I learned never to trust HR Any advice for the future?

like

That moment when you start using consultant speak in your real life e.g. "lessons learned" or "add value" 😳

like

Hot take: resumes don’t need to be perfect—they just have to be “good enough.” 🔗 in comments for the resume I used to get out of consulting to join a start-up, in addition to the resume tips and tricks (and lessons learned) I found to be most helpful.

likehelpfulsmart

Wife and I have been talking about learning to golf together. Want to get started with lessons / clubs as a Christmas gift. (Weather warms here by March). Any suggestions? Start with lessons? Clubs?

like

Quick advice on financing a used car? Any recommendations/lessons learned? Thanks! Happy to provide additional info

like

We have scripted programs for everything. Do I really need much of a lesson plan?

like

I am teaching as an adjunct at my alma mater. I am focusing a class on life as an attorney and the different roles your substantive background can bring you to and tips/tricks/antidotes for survival. What are the things you wish someone told you as a 2L or 3L about life and law and your practice? Things to focus on or ignore? Lessons learned the hard way? Would love to crowd source bullets on this outside of my own experience (and my guest speakers who are unfortunately all male except for 1).

like

I teach Economics and Personal Finance at a specialty school. I use NGPF for personal finance but I am seeking Economics lessons for G&T

I want to brush up my design skills. Especially illustrator and photoshop. Any tips for great tutorials, lessons, online universities etc. Thank you!

like

How many teachers set their own curriculum, meaning that you come up with everything you teach and assess? Beyond that, how many teachers are expected to change up their content almost every year? As a high school English teacher, I develop everything myself or collaborate with my (frankly amazing) coworkers. We are asked constantly to find new, modern books to buy and to develop curriculum around them (because our subject is more skill based). Wondering if other districts/subjects do the same.

like

WE ARE BACK!!!: Come see a LIVE FREE chemistry lesson on making ELEPHANT TOOTHPASTE !! Day: 11/12/2020; Time: 5:00 pm EST; Place: Facebook Live (Jonte Lee). For more information, please see the flyer above.

Post Photo
like

Additional Posts

I’m selling my 2 extra Ali Wong stand up tickets for $125 each. It’s going to be at the Warner Theater on Saturday Aug 28 at 10pm. DM me if you’re interested. Per requirements of the Event Operator, to enter this event all attendees must show proof of full COVID-19 vaccination OR proof of a negative COVID-19 test taken within 48 hours.

Post Photo
like

When you are the only female in a big meeting and you literally have to raise your hand to say something because you don't want to talk over others.

like

Do you take your zoom job interviews in your office? Hard to schedule video interviews when you’re going into work.

like

Any word on work/life balance at Ropes & Gray NYC? Looking at a position in the funds group specifically.

like

McKinsey & Company Client Delivery Lead HCOL TC?

like

Looking to move from D.C. to Tampa to work for another consulting firm and have an interview for a position. Given the lower COL, how should I go about salary negotiations?

like

Need some advice. I’ve been working with my current employer for 10 months. I have a bachelors in business management and 4.5 years of experience in different functions of HR & have worked for large organizations such as Blue Cross Blue Shield. Someone was hired in my team recently and I found out that this person makes $27K more than me. This new team member has 3-4 years of experience in HR and a BS in Psychology. They are the Sr HR Specialist and I am HR Specialist. Continue in comments

like

Can a company rescind an offer you have signed due to coronavirus slowdown without any legal repercussions?

like

With new considerations for full-time remote work given the pandemic, has anyone heard of hires internationally at agencies? For example, if an agency office in London has a remote option, do they even consider candidates from the U.S. or will the time difference be too great to make it work?

like

Does anyone know if law firms are closed/WFH in Chicago?

like

First lateral interview tomorrow 🙏 Any tips are appreciated!!!

like

Have an interview in an hour. Leaving my firm after 3 months bc the role is far less challenging and fulfilling than I anticipated, and the role’s responsibilities are way off from the job description. Should I voluntarily explain why I’m leaving so soon or should I only bring it up if asked?

likefunny

Avg salary for senior cw in Chicago?

like

28/M solo trip ideas during Thanksgiving please ... Gotta use those spg and Marriott points ;)

For those at firms other than PwC, do you guys feel ready to be promoted to senior after only 2 years? I’m a third year at PwC up for promotion but I still don’t know if I feel ready. Just curious

like

Any recommendations for a good professional case interviewer/coach either through Casecoach or independently? Have an upcoming MBB interview

like

Anyone have a Goldman Sachs Marcus high yield savings account referral? I opened one but afterwards realized there are referral bonuses I left on the table. If anyone has a referral, I may be able to finesse applying it retroactively (benefitting both of us). Conversely, if anyone is thinking of opening one, I’m happy to refer you. Feel free to DM! Just wanted to keep the inside baseball for US.

like

I know someone who is on medical leave but they’re not really sick. Should I report them or mind my business?

likefunny

Since the thanksgiving holiday I have zero motivation to work. I’ve just been watching Netflix 🥲

likefunny

Rate my offer Tech consulting with 10 YoE $210k base $90k salary (guaranteed yr 1 with upside) $50k signing bonus Currently at $179K base, expecting ~25% bonus (~$45k), one time $15k spot bonus and they’d likely throw in retention bonus of $20-25k. Base salary would be $200k beginning July if I stay where I am.

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
Download Fishbowl to see what others are saying
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the Fishbowl app

Get realtime notifications and see
what's happening in your industry
from the palm of your hand.

For account settings, visit Fishbowl on Desktop Browser or

General

Legal