Submitted by Paradox68 t3_125ui0d in wallstreetbets
Paradox68 OP t1_je7b9w7 wrote
Reply to comment by milkman_z in Anyone else think AMZN is going to pop off tomorrow? by Paradox68
Just buy Amazon shares dude. As soon as you start trading Futures (Options) you have entered “total gambling”
There’s investing, then there’s high risk investing (basically gambling), and then there are Options (total gambling). You’re trying to time the market which is usually not going to work out, unless you have some good information.
Buying shares there is no time limit. If you believe they’ll go up in the mid-long term, just buy shares. Going too far out, you’ll pay too much of a premium on the Options and increase your chances of losing it all. Just buy AMZN shares.
SherkPentagram t1_je81e1v wrote
He’s telling you to sell them, not buy them though. Basically, if you wanted to sell 100 shares when it hits $140 again, you could just sell a covered call at a strike price of $140 with months until expiration, and get paid while you wait for it to hit the price you were gonna sell at anyways. Or it doesn’t hit $140 by then and you keep your shares and the money you got for selling the call.
Paradox68 OP t1_je8apyf wrote
Something doesn’t add up there. Where’s the part where I lose all my money? When does that happen?
EDIT: nevermind, I had ChatGPT explain in more detail, and then give me a dumbed down version of both sides. I understand everything now.
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