I can't imagine someone involved in that kind of conversation made 3.5 mil on a conservative options strategy.
On Wed, Jul 1, 2020 at 2:30 PM Ken Hohhof <af...@kwisp.com> wrote: > There are many option strategies, some are actually pretty conservative. > When I was much younger, I used to sell covered calls to generate extra > income on stocks I was long that had appreciated. Worst outcome was the > stock got called away at a price I was willing to accept. Most of the time > the options expired worthless and I pocketed a few bucks and did it again. > > > > There are also strategies like straddles and spreads that are not high > risk. > > > > You can also buy options, and should be prepared to lose what you spent on > them if you guess wrong. But you can’t lose more than you spent. If you > guess right, you can make a lot. It’s like Vegas, if you buy $500 of > chips, that’s the most you can lose. > > > > Really risky is buying on margin, or short sales, or selling naked > options. Yes, I don’t have the guts for those. > > > > > > *From:* AF <af-boun...@af.afmug.com> *On Behalf Of *ch...@wbmfg.com > *Sent:* Wednesday, July 1, 2020 2:05 PM > *To:* AnimalFarm Microwave Users Group <af@af.afmug.com> > *Subject:* Re: [AFMUG] OT - stock market > > > > I don’t have the guts for options. But I did make a nice pile off of > Tesla over the past few months. > > > > *From:* Tushar Patel > > *Sent:* Wednesday, July 1, 2020 12:49 PM > > *To:* AnimalFarm Microwave Users Group > > *Subject:* Re: [AFMUG] OT - stock market > > > > Interesting, yesterday I ran into someone and she started talking about > how people are making a lot of money in options. She went on to say her > friend made $3.5M in Tesla options. > > > > Tushar > > > > > > On Jul 1, 2020, at 1:12 PM, Ken Hohhof <af...@kwisp.com> wrote: > > > > I spent about an hour on the phone yesterday with my guy at Morgan > Stanley, basically cutting my exposure to equities in my IRA in half. Went > from 60/40 to 30/70. Also got rid of one real estate ETF. > > > > But the interesting factoid I wanted to pass along was he said a lot of > individual small investors are currently speculating in the market > including in options basically as a form of entertainment. And that is > helping to boost some irrational exuberance. Even some big name stocks > that have done well during the pandemic have been bid up to some pretty > crazy PE ratios. > > > > I guess if you can’t go to a movie, concert, bar, or casino, there’s Wall > Street. But people at a casino aren’t necessarily looking to make a > profit, just have a good time while losing their money. > > > > It also turns out he knows the family of the kid who committed suicide > because he thought erroneously that he lost almost a million dollars on > some millennial focused stock trading app. > > > https://www.cnn.com/2020/06/19/business/robinhood-suicide-alex-kearns/index.html > > > > -- > AF mailing list > AF@af.afmug.com > http://af.afmug.com/mailman/listinfo/af_af.afmug.com > > ------------------------------ > > -- > AF mailing list > AF@af.afmug.com > http://af.afmug.com/mailman/listinfo/af_af.afmug.com > -- > AF mailing list > AF@af.afmug.com > http://af.afmug.com/mailman/listinfo/af_af.afmug.com > -- Lewis Bergman 325-439-0533 Cell
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