Submitted by Paradox68 t3_125ui0d in wallstreetbets
SherkPentagram t1_je81e1v wrote
Reply to comment by Paradox68 in Anyone else think AMZN is going to pop off tomorrow? by Paradox68
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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