Investment BS Thread - Stocks/Futures/Mutual Funds/Bonds/Commodities/Options/ETFs/401ks/Etc

Well now I see a reason for stock splits (or at least a significant effect). With fractional shares becoming available, there seemed to be no reason for a split. A high share price doesn't prevent anyone from investing if they have access to fractional shares. But with options being contracts for 100 shares, only a fairly wealthy investor could sell covered calls of a $5000 stock ($500,000)

 

It's a contract. They can't be traded. Imagine the possibilities if you could trade them? I've got a pretty good understanding of option but it would take me another 10 years of figuring out strategies if they allowed trading them. lol

 

YOu're all set...there are 4 choices with options...Buy to open, Sell to open, Buy to close, Sell to close...You are buying to open CALLS...You buy the right to sell shares at $xx someone SOLD TO OPEN that right for the fee. They believe it's going to go down....When that option reaches it's expiration it will be exercised if it's in the money... So that person who SOLD to OPEN now owes 100 shares at that $xx price to whoever holds that contract.
If it's you and you don't SELL to close the option it means you want to exercise it and get the shares...
It's nearly always better to sell to close your open contracts and take the $$ because of time value...
The only ones that are sometimes just barely not equal to the actual value are PUTS at expiration...off by a few cents

 

End of the day got crazy today...Look at the VXX...

 

If I had known all these basketball teams were going to strike would have bought DKNG puts...
$39 28AUG20 DKNG puts $1.00....

 

I could be wrong but I believe options do F all for the company. Ford doesn’t make any money off it so who gives a tip if there’s options or not. Maybe it will incentivize people to own shares so that they do coveted calls like this but I don’t think the company makes any money directly.

 

Lots of shit happening tomorrow is why. So the GOP just released a little cure all.

https://www.cnbc.com/2020/08/26/gop-set-to-propose-smaller-coronavirus-stimulus-bill.html

 

my gun stocks are going up again. Bring on the collapse.

 

The NBA has the legitimacy of the XFL at this point and they seem to be going downhill quickly.

 

My beloved Clippers are doing well this year but.. I just can't. I can't do it.

 

I respect Kawhi more than I already did. No message on his jersey, and a “Clippers” shirt on the bench. Much respect to him.

 

Yeah, I don't see how it benefits the company either. That's why I clarified "reason" with "significant effect".
Although, there must be some reason for doing a stock split... Why would they bother otherwise?

 

I still can’t buy fractional shares with a major broker (Merrill). Maybe for people like me to afford a share or two.

 

Join the fidelity team

 

Merrill is connected to Bank of America so I have everything there. It’s so easy to transfer money that way.

 

Mine is too.. once I connect my accounts it's just a couple of clicks. Also, BOOOO BAC

 

Haha I know we’ve discussed B of A on here before. I’ve been happy with Merrill though, no complaints at all. I don’t care about fractional shares but was pointing out that not everyone can buy them.

 

Sticking with

 

sin stocks, cruises, and... sheep?

 

Ho-boat-ewe?
(How about you?)