UAW President, Shawn Fain, Agrees that People don't want to work

[Marener]

/------/ It's investing and lending out my shares of stock. Apparently, you know nothing about trading derivatives or what gambling is. Not the same.

Yeah, it’s gambling. You can make it sound as fancy as you want, but options trading is just gambling. These are merely bets on whether the stock goes up or down. That’s it.

 

[Cellblock2429]

Yeah, it’s gambling. You can make it sound as fancy as you want, but options trading is just gambling. These are merely bets on whether the stock goes up or down. That’s it.

/----/ I own the stock. I sell an option out of the money. Regardless of whether I'm assigned or not, I still get the premium. Covered calls also help recoup losses if your stock goes down. What am I gambling on? Please explain.

Yes, there are parts of the market that is gambling. Buying a pharma stock hoping the FDA will approve a new drug and it shoots up, is gambling. Because, if it doesn't, then the stock tanks despite the fundamentals. Buying PUTs on a stock, hoping it will tank if they don't report good numbers is gambling. Commodity trading is gambling on forces like the weather that determine if the orange crop is profitable or destroyed by a freak ice storm. Shortselling is 100% gambling, and I do none of that.
But writing covered calls on stock you own is no different than buying rental property and collecting rent each month. Eventually, the renters pay off the mortgage and all of the taxes, while the property increases in value. No different at all.

 

[Marener]

I own the stock. I sell an option out of the money. Regardless of whether I'm assigned or not, I still get the premium. Covered calls also help recoup losses if your stock goes down. What am I gambling on? Please explain.

If the stock goes up and the option is exercised, you lose the stock at a lower price than it’s worth.

You are gambling on whether the stock goes up or not. If the stock goes up, you lose money. If the stock goes down, you make money. The premium is the amount wagered by the person buying the option.

It’s a bet. That’s all. Just gambling.

 

[struth]

If the stock goes up and the option is exercised, you lose the stock at a lower price than it’s worth.

You are gambling on whether the stock goes up or not. If the stock goes up, you lose money. If the stock goes down, you make money. The premium is the amount wagered by the person buying the option.

It’s a bet. That’s all. Just gambling.

why would anyone exercise their option if it was going to lose them money?

When one purchases an option they know right off how much they COULD lose, but they aren't required at all to exercise their option. They know their risk from the start.

You clearly, as usual, have no clue what you are talking about

 

[Marener]

why would anyone exercise their option if it was going to lose them money?

When one purchases an option they know right off how much they COULD lose, but they aren't required at all to exercise their option. They know their risk from the start.

You clearly, as usual, have no clue what you are talking about

The person selling the options loses money when the stock goes up and the option is exercised.

Pay attention and you wouldn’t ask such stupid questions.

 

[struth]

The person selling the options loses money when the stock goes up and the option is exercised.

Pay attention and you wouldn’t ask such stupid questions.

When the option is exercised! Haha in other words he doesn’t have to exercise it

And no rational person would if it was gonna lose them money

 

[Marener]

When the option is exercised! Haha in other words he doesn’t have to exercise it

And no rational person would if it was gonna lose them money

We are talking about the seller, not the buyer. You know for someone to buy an opinion, there has to be someone selling it, right?

Covered calls is a way for people who own stock to make extra money in premiums from selling options.

But it’s still gambling because if you sell an option that is exercised, you (the seller) loses money.

 

[Cellblock2429]

If the stock goes up and the option is exercised, you lose the stock at a lower price than it’s worth.

You are gambling on whether the stock goes up or not. If the stock goes up, you lose money. If the stock goes down, you make money. The premium is the amount wagered by the person buying the option.

It’s a bet. That’s all. Just gambling.

/—-/ I lose the stock at a higher price than I paid, plus I get the premium. I use a delta to place the call at 10% chance of being in the money. If the stock shoots up and I want to hold it without being assigned, I simply buy it back or roll it over to the following expiration date. I can also buy it back earlier for a lower premium. It happens sometimes and I do it. I never write options for the week the company posts earnings. Simple precautions have earned me 6 figures a year in addition to dividends.

 

[Marener]

/—-/ I lose the stock at a higher price than I paid, plus I get the premium. I use a delta to place the call at 10% chance of being in the money. If the stock shoots up and I want to hold it without being assigned, I simply roll it over to the following expiration date. It happens sometimes and I do it. I never write options for the week the company posts earnings. Simple precautions have earned me 6 figures a year in addition to dividends.

You lose the stock at a lower price than its trading for. Which means you lose money as compared to if you hadn’t done anything. Rolling it over just kicks the can down the road and compounds the risk.

There’s no such thing as a free lunch. This is gambling.

 

[Cellblock2429]

You lose the stock at a lower price than its trading for. Which means you lose money as compared to if you hadn’t done anything. Rolling it over just kicks the can down the road and compounds the risk.

There’s no such thing as a free lunch. This is gambling.

/——/ I just explained my options. And you didn’t factor in the premiums. Sure it can go up, but at some point take money off the table to lock in profits. You clearly have made up your mind and no matter what I say you have your biased opinion. I’ve done it successfully for 20 years and will continue. And I would never go into a casino or race track and bet.
Goodbye.

 

[Marener]

/——/ I just explained my options. And you didn’t factor in the premiums. Sure it can go up, but at some point take money off the table to lock in profits. You clearly have made up your mind and no matter what I say you have your biased opinion. I’ve done it successfully for 20 years and will continue. And I would never go into a casino or race track and bet.
Goodbye.

Nothing you explained is risk free. Options are merely bets with other people about whether the stock goes up or down. Stock goes up, you lose money. Stock goes down, you get money.

There are things you can do to cut your losses or reduce your risk, but it’s still just a bet.

That money you’re winning comes from someone else, and that’s someone who made a bet and lost.

 

[struth]

We are talking about the seller, not the buyer. You know for someone to buy an opinion, there has to be someone selling it, right?

Covered calls is a way for people who own stock to make extra money in premiums from selling options.

But it’s still gambling because if you sell an option that is exercised, you (the seller) loses money.

The seller? Haha the seller isn’t gambling his selling.

Wow it’s not his once he sells it.

 

[Marener]

The seller? Haha the seller isn’t gambling his selling.

Wow it’s not his once he sells it.

I tried to explain it to you twice and it went over your head. You aren’t willing to listen so you can’t learn.

 

[struth]

I tried to explain it to you twice and it went over your head. You aren’t willing to listen so you can’t learn.

Haha yes you have tried desperately to try and cover for the fact you are clueless

It’s been unsuccessful

 

[Cellblock2429]

Nothing you explained is risk free. Options are merely bets with other people about whether the stock goes up or down. Stock goes up, you lose money. Stock goes down, you get money.

There are things you can do to cut your losses or reduce your risk, but it’s still just a bet.

That money you’re winning comes from someone else, and that’s someone who made a bet and lost.

/——-/ “Stock goes up, you lose money. Stock goes down, you get money.”
That proves you have no idea what you’re talking about. I trade options in ETFs that trade within a range. I get dividends plus the premiums. So, your mind is closed to new information. You invest your way and I’ll invest my way.

 

[Marener]

/——-/ “Stock goes up, you lose money. Stock goes down, you get money.”
That proves you have no idea what you’re talking about. I trade options in ETFs that trade within a range. I get dividends plus the premiums. So, your mind is closed to new information. You invest your way and I’ll invest my way.

You get the premium for taking the risk of a loss. That’s the bet.

You can try to reduce the risk of your bet all you want, it’s still a bet.

There’s no such thing as a free lunch. No one will ever convince me otherwise.

 

[struth]

You get the premium for taking the risk of a loss. That’s the bet.

You can try to reduce the risk of your bet all you want, it’s still a bet.

There’s no such thing as a free lunch. No one will ever convince me otherwise.

so if there is no such thing as a free lunch, are you now suggesting that everything is a gamble?

 

[struth]

Nothing you explained is risk free. Options are merely bets with other people about whether the stock goes up or down. Stock goes up, you lose money. Stock goes down, you get money.

There are things you can do to cut your losses or reduce your risk, but it’s still just a bet.

That money you’re winning comes from someone else, and that’s someone who made a bet and lost.

nothing in life is risk free....nothing, the fact you think it should be, is rather stupid.

by your logic it's a gamble every day someone gets out of bed.

 

[elektra]

There’s no such thing as a free lunch. No one will ever convince me otherwise.

Biden, the Democrats, all the illegal aliens, green energy corporations and investors, should of convinced you a long time ago that there is a free lunch.

Obama bailing out the auto industry, that was a big free lunch.

 

[elektra]

nothing in life is risk free....nothing, the fact you think it should be, is rather stupid.

by your logic it's a gamble every day someone gets out of bed.

it is a gamble everyday someone as stupid as Marener gets out of bed, it is a gamble and a risk for any of us that may be near