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How do options work? I never got them

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You are betting that a stock will be above or below a certain price in a certain number of days. If it hits the price you break even, and you profit for every penny beyond it. If it doesn't hit you lose everything.

They are on a timer with the potential to lose everything, so it is much riskier than just buying stocks. But they are much cheaper, meaning you can buy way more, so the reward is much higher.


:chad!black2: :marseybear::marseyrefrigerator:

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Call= I think the price will go up

Put= I think the price will go down

It’s alot more complicated than that but I’m at work and don’t wanna type that much.

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Ok, but do you have to actually own shares of that stock to option it?

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You can sell options without owning the underlying stock, these are called naked options and are far more risky than sell options on stocks you own.

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