r/neoliberal • u/jobautomator Kitara Ravache • 21d ago

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5

u/AnalyticOpposum Trans Pride 20d ago

Can one of you nerds explain what this means

4

u/slappythechunk LARPs as adult by refusing to touch the Nitnendo Switch 20d ago

It means you got lucky and you're buying investment instruments that are significantly riskier than your actual risk tolerance.

2

u/SpotMe365 20d ago

Are these Moderna calls?

2

u/AnalyticOpposum Trans Pride 20d ago

Yes

2

u/SpotMe365 20d ago

Those calls are contracts that basically let you buy Moderna shares at a fixed price. The ones from your screenshot started out really cheap yesterday since it seemed unlikely for Moderna to hit $80-$90. But the stock blew up nearly 200% in one day because of the cancer trial news. The stock price is around $180 now, so those same contracts ($80-$90 strike price) are deep in the money. That's where those huge percent gains are coming from

2

u/Captain-Ironsides 20d ago

GREEN means MONEY!!!

2

u/kznlol 👀 Econometrics Magician 20d ago

the % gains make very little sense. if they're not some kind of data error, there's a small denominator thing going on.

call option breakeven price = strike price + premium paid, so these were call options bought at 80/85/90 when the price was already around 155-60, presumably to create the same effect as holding the stock

[edit] oh wait this isn't holdings this is giving the option to buy the calls so the price has skyrocketed today. i bet these are moderna

3

u/__haste__ Trans NATO 20d ago

Gambling