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Geologist βš’οΈ looking for some interesting plays within the commodity space πŸ“ˆ - No advice, just stupid thoughts. - Passion for cycling, cooking and nature! πŸͺ΅πŸͺ™
Feb 18, 2021 β€’ 9 tweets β€’ 5 min read
1- Options & Earnings - A new thread!

Every option rises in price in anticipation of earnings. This is related to the increase of anticipated volatility (yo vega, she's back).

#fintwit #mintwit $option $AG #option #optiontrades 2 - But why?

Actually it's simple: earnings are a casino event for the stonk. Nobody knows what will happen, will the stonk crash or rise? Earnings are thus binary, it's a yay or a nay (UK ref. for you @BuyingMyFreedom). Movements post earnings are stronger as well.
Dec 2, 2020 β€’ 13 tweets β€’ 5 min read
(1) So let me try to write something down on #options, more specifically #LEAPs (Long-term options).

Options?

Options give you the π—Ώπ—Άπ—΄π—΅π˜ to buy (call) or sell (put) an underlying asset (= stock/ETF) at a fixed price (= strike price) up to a spec. date (= exp. date). (2) Premium.

Ofc. options aren't free. You'll have to pay a premium for this right. Important to keep in mind is the multiplier, which often equals to 100 (every option covers 100 of the underlying shares).

𝗣𝗿𝗢𝗰𝗲 𝗽𝗲𝗿 π—Όπ—½π˜π—Άπ—Όπ—» = π—½π—Ώπ—²π—Ίπ—Άπ˜‚π—Ί * 𝟭𝟬𝟬 (+ π—°π—Όπ˜€π˜π˜€)