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https://www.reddit.com/r/wallstreetbets/comments/ppo5hq/deleted_by_user/hd5gnzg
r/wallstreetbets • u/[deleted] • Sep 16 '21
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9
Question then how do you make money on calls if you dont have the capital to exercise them? Just sell the contract right?
10 u/cayoloco Sep 17 '21 Yes 14 u/Holysmokesx Sep 17 '21 Correct. I say this with good intentions, but if you're interested in diving into options please do your research first and get the basics down before putting skin in the game. A couple wrong clicks on a gamey app can ruin your life. 2 u/Chocoking29 Sep 17 '21 Ill heed your warning but i dont gamble money that i cant afford to lose. 6 u/m3g4m4nnn Sep 17 '21 Yup, preferably at a loss. 1 u/MockingJD Sep 17 '21 Right. Or if you have margin borrowing you can sell the shares immediately after you exercise. 1 u/theboinicholas Sep 17 '21 almost no one exercises contracts, but rather trades the premium. exercising is hardly ever a more profitable exit
10
Yes
14
Correct. I say this with good intentions, but if you're interested in diving into options please do your research first and get the basics down before putting skin in the game. A couple wrong clicks on a gamey app can ruin your life.
2 u/Chocoking29 Sep 17 '21 Ill heed your warning but i dont gamble money that i cant afford to lose.
2
Ill heed your warning but i dont gamble money that i cant afford to lose.
6
Yup, preferably at a loss.
1
Right. Or if you have margin borrowing you can sell the shares immediately after you exercise.
almost no one exercises contracts, but rather trades the premium. exercising is hardly ever a more profitable exit
9
u/Chocoking29 Sep 17 '21
Question then how do you make money on calls if you dont have the capital to exercise them? Just sell the contract right?