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caveyh96 t1_iy3ev8d wrote

Dumb question, what's an option?

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digme12 t1_iy3fpt5 wrote

It's a contract to buy stocks at a fixed price forward looking into the future with a certain "guesswork". You make money be prognostication of the stock price to a forward looking date. highly lucrative and highly dangerous for loss potential

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caveyh96 t1_iy3fumb wrote

Oh wow, seems like you could lose a ton but fair play to those that do it.

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MarkVarga t1_iy3o4c5 wrote

Buying options is quite risky as you figured, but selling options (what this dude is doing) is the other side of that trade: lower risk and lower reward, as well.

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