Geologist βοΈ looking for some interesting plays within the commodity space π
-
No advice, just stupid thoughts.
-
Passion for cycling, cooking and nature!
πͺ΅πͺ
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).
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 πΏπΆπ΄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).
