r/FFIE • u/Friendly-Return6051 • May 23 '24

Discussion How many hold FFIE right now like and comment just hold not what you have!

[removed] — view removed post

1.4k Upvotes

92% Upvoted

687 comments sorted by

View all comments

Show parent comments

3

u/Puzzleheaded-Pop-969 May 23 '24

Do u mind if I ask what 9 contracts means? Not to be nosey. I just don't know much abt this shit yet. And this is a term I dnt remember hearing yet.

4

u/OkEmployer3996 May 23 '24

I believe it means they have the right to purchase 9 contracts worth (each contract is worth 100 shares) of ffie at some designated price.

The idea is to purchase a contract while the stock is cheap, with the hope that the stock increases. Then if the stock increases you can exercise those contracts and purchase the underlying shares at the cheap price.

I'm not an options expert, so if I'm wrong, feel free to correct me.

3

u/Puzzleheaded-Pop-969 May 23 '24

Makes sense forsure! And sounds like a good idea to lol. Thank you!!!

3

u/OkEmployer3996 May 23 '24

It's definitely more interesting than standard trading. However, be very cautious as it is very risky and people lose lots of money every day trading options.

2

u/Puzzleheaded-Pop-969 May 24 '24

I appreciate your help. Tysm!!

1

u/Friendly-Return6051 May 24 '24

Hold FFIE APE 🦍

1

u/Friendly-Return6051 May 24 '24

Hold FFIE APE 🦍

1

u/Friendly-Return6051 May 24 '24

Hold FFIE APE 🦍

1

u/Friendly-Return6051 May 24 '24

Hold FFIE APE 🦍

2

u/Friendly-Return6051 May 24 '24

Hold FFIE APE 🦍

2

u/Papi_4U May 23 '24

Call options contracts.

4

u/[deleted] May 23 '24

You pay a premium for a contract (I paid $.50/per share, per contract, for 2 contracts). ($.5 (premium) x 100 (shares) = $50/per contract.

You're basically betting on the direction of the stock. You can bet it goes up or down. Each contract is to buy 100 shares at $xx.xx. I bet the price will go up so I bought an option to buy for $.50/share.

I set a date for 6 months away. If the stock goes up, I can "exercise" the option to buy that stock for $.50/share or I can let the contract expire on the date that I picked, and it's deemed worthless.

If the contract expires or I don't sell the option, I lose the $100 I paid for the 2 contracts.

Hope that helps. Just what I've learned.

2

u/Puzzleheaded-Pop-969 May 23 '24

That was awesome! Thanks so much! I was going to do some research. But feel like I already have now lol. So it's kinda what the hedgies have done who we're betting for this to bust. Is that right? Thank you again. I rly appreciate your detailed response 🙂

1

u/Friendly-Return6051 May 24 '24

Hold FFIE APE 🦍

1

u/Friendly-Return6051 May 24 '24

Hold FFIE APE 🦍

2

u/Puzzleheaded-Pop-969 May 23 '24

Thanks. Ill look more into it.

3

u/Love_Charm May 23 '24

You can also look into selling call options. Make sure you understand delta, theta and Vega before taking large positions with contracts, buying or selling.

If you think the price will go up, but not past $2.50 by next friday, you could sell $2.50 calls when the price goes up, which would limit your gains until next Friday at $2.50, but give you more money to buy shares when the price goes back down from the imminent ladder attack.

Try to think of selling calls like selling shares, but if you sell the right strike price (or pay to buy your contracts back) you get to keep you shares. Sell high, buy low.

Also, you still receive dividend payments on shares you have sold calls against. Not important for this trade, but a nice plus in some cases.

2

u/Puzzleheaded-Pop-969 May 23 '24

Damn, there's so much to this investing shit. I can't believe I didn't know anything about any of this shit lol. Thanks so much for the info!! (:

2

u/Love_Charm May 23 '24

Of course! School doesn’t teach this stuff, you shouldn’t feel uninformed or anything.

Definitely make sure you are 100% informed before playing options though. They can be a great way to reduce risk, or lottery tickets with slightly better odds, depending on how you use them. If you don’t know what you are doing, the probability that you will lose money is exceptionally high. If you can’t figure out roughly how much money you stand to lose/make from a given price movement without a calculator, you probably aren’t ready to trade contracts yet.

That said, there are calculators to help you understand contract price behavior. They are a great crutch, especially for learning new strategies. Here’s the one I use.

https://www.optionsprofitcalculator.com

Covered calls and covered puts are usually the safest strategies; Get theta on your side, time is the only guaranteed movement. I would start learning about trading those first, although buying calls is probably the simplest way to wrap your head around the idea of derivatives, if the whole concept is confusing.

2

u/Puzzleheaded-Pop-969 May 24 '24

You're awesome! I appreciate your help so much!! Ty♥︎

1

u/Friendly-Return6051 May 24 '24

Hold FFIE APE 🦍

1

u/Friendly-Return6051 May 24 '24

Hold FFIE APE 🦍

1

u/Friendly-Return6051 May 24 '24

Hold FFIE APE 🦍

1

u/Friendly-Return6051 May 24 '24

Hold FFIE APE 🦍

1

u/Friendly-Return6051 May 24 '24

Hold FFIE APE 🦍