Techuwear

With this Option/Put I predicted the price of the stock to go down. I bought 20 contracts for $15/piece for a total of $300. Those contracts are now worth $17/piece because the stock price went down as I projected. Giving me a profit of $40 the equivalent to 13% earned. I’ll sell the contracts when they’re worth $20. Giving me a profit of $100

On this post I’m going to try my best to explain what a option call/put is. U will need to “enable options” on robinhood settings. You have to apply for this. They’ll ask how much you make and what’s your experience. I lied 🤭
Income over $100k and very experienced. Also Youll be using money from your job to fund your account for long term investments. Then…

First you’ll pick a stock.
Click on trade.
Click on trade options.
Then choose a date. (I’ll explain how to choose to date below)

Now you have figured out how to get to the options trading, let’s explain what that is…

Now let’s say there’s a house is for sale. The house is $100k. But you know the house will be worth $150k or more by 2/25. So you tell the owner that you will buy the house for $100k. And you’ll pay him on or before 2/25. You don’t have $100k to buy it but you have $1000 for him to lock you in on that $100k price. He takes the $1000 and he writes up a contract promising you’ll have rights to buy the house for $100k by 2/25. Now here’s the cool part…2 days later the house is worth $170k because of inflation. 😱😱
So here’s what you do, sell that contract for $1500 to a person that has $100k to buy the home. Now they have the right to buy the home for $100k instead of $170k. And why wouldn’t they.

🚨Look at this last pic

A “Call” is betting price goes up.
A “Put” is betting price goes down.

White -Contract expiration date.

Red -The option contract

Green -The cost you think the stock price will go to before the expiration date.

Blue -The current cost of the stock

Yellow -The current cost of the option contract. (Multiply by 100)

“The house” = 100 shares
“The contract” = Options
Buy/sell contracts instead of the shares 💡

Target hit!! TSLA Option Puts
$475 PROFIT in 1 hr on 2/17/22

Netflix is extremely cheap right now. The green line is the previous high cost. And the red line is the current cost. I can 100% guarantee that price WILL go back to the all time high price. When? Idk. But it will. So if you’re looking for a long term stock, I’d go with this one.