Tricks of the successful trade : entry, exit, price, position size, risk , upside and strategies

[pandeyathotmail]

@hanera

When a trader buys a call, the dealer who sells it will typically buy a certain amount of stock in the underlying to offset their exposure. If the shares continue to rise, dynamically managing that hedge can entail increasing purchases.

@pandeyathotmail Something for you. You may want to search the web to get more details how the market maker hedges their position when somebody trade an option. It has impact on share price. This option thingy is a complex mechanism and full of info, you may need to go to school to learn, ToS offers courses on option free for account holders. If you are good at maths and derivatives, it plays with those If you understand it well, can make huge fortune with a small initial capital. I use to know a blogger who make $30-$50M with only few thousand dollars trading AAPL calls during the heyday of AAPL (from iPod launch till around 2013, after that he quitted to do other stuffs, didn’t hear from him again). Is not a BS, he showed me his trading records. Btw, I knew more people went broke trading options though.

Long call = Long underlying + Short put is the most important formula

@manch

I have long concluded I don’t understand Tesla, and likely will never do. Kudos to people who understand it and have the conviction to put their money on the line.

The problem with you, you think like an academic. You should behave like a cultist. Just believe in Elon Musk! Elon is a genius. Nobody is as godly and well liked as him after SJ is not around.

Thanks. I am cross-posting in the tricks thread