I made $10,000 this morning

[JS80]

So basically I bought jan06 75 calls for 0.05 per contract and sold them at 1.45 each.

Edit: I'd like to add a disclaimer since it seems like everyone is now running to invest in options. Although I am net positive in investing options, these $10,000 gains are far and few. In fact this has to be the largest gain I've ever had (percentage wise) on a trade.

Do you due diligence before you start trading options. Be prepared to lose a couple grand before you truly understand what's going on. You may never make money.

 

[Sheepathon]

 

[tec699]

:Q:thumbsdown:

 

[Leper Messiah]

Originally posted by: Sheepathon

and OP, you want to lend me a few K?

 

[AdamSnow]

Not bad for a Tuesday morning...

 

[acemcmac]

niiiicceee

 

[Finns14]

OP explain what that means!!! I need 10000

 

[JLGatsby]

What lead you to buy them in the first place?

 

[Drakkon]

epenis+=10?

 

[JS80]

Originally posted by: JLGatsby
What lead you to buy them in the first place?

I had a hunch BSX would come over the top with a 76-80 bid. All the articles I was reading said they are do or die right now and if they don't buy GDT they will be taken over themselves.

 

[JS80]

Originally posted by: Drakkon
epenis+=10000

fixed

 

[MasterAndCommander]

Alrighty - a round of :beer:'s - on you of course

 

[gigapet]

10k - capital gains tax = ?

 

[Viper GTS]

Of course the flip side to this is had that stock dropped any significant amount you'd be WAY in the hole.

Viper GTS

 

[Feldenak]

Originally posted by: gigapet
10k - capital gains tax = ?

$0.30

 

[Leper Messiah]

guess the OP doesn't want to lend me a few K.

 

[badmouse]

:wine: <- champagne

congrats!

I got a $5 rebate check in today's mail. You did better

 

[JLGatsby]

Originally posted by: Viper GTS
Of course the flip side to this is had that stock dropped any significant amount you'd be WAY in the hole.

Viper GTS

No he wouldn't. He didn't buy the stock, he bought an options contract.

He bought the contracts at .05, according to my math, he paid a total of about $350 for them. He would only be out his original $350 because the contracts would have expired worthless.

 

[StrangerGuy]

YTMND?

 

[vi edit]

BSX = Boston Scientific?

 

[lozina]

Now go and pose in front of a Viper for the camera ...

 

[gigapet]

Originally posted by: JLGatsby

Originally posted by: Viper GTS
Of course the flip side to this is had that stock dropped any significant amount you'd be WAY in the hole.

Viper GTS

No he wouldn't. He didn't buy the stock, he bought an options contract.

He bought the contracts at .05, according to my math, he paid a total of about $350 for them. He would only be out his original $350 because the contracts would have expired worthless.

why doesnt everyone do this then?

 

[JS80]

Originally posted by: gigapet
10k - capital gains tax = ?

Counts as ordinary income and I'm at 31% tax rate so $3,100

However, brokers are not required to send to the IRS options transactions so theoretically I don't have to pay a penny, but I will pay it bc i'm a good citizen

 

[JS80]

Originally posted by: gigapet

Originally posted by: JLGatsby

Originally posted by: Viper GTS
Of course the flip side to this is had that stock dropped any significant amount you'd be WAY in the hole.

Viper GTS

No he wouldn't. He didn't buy the stock, he bought an options contract.

He bought the contracts at .05, according to my math, he paid a total of about $350 for them. He would only be out his original $350 because the contracts would have expired worthless.

why doesnt everyone do this then?

because it's risky. lose 100% or gain 1000% as opposed to gain/lose 15% each way on an equity trade.

 

[vi edit]

Originally posted by: gigapet

Originally posted by: JLGatsby

Originally posted by: Viper GTS
Of course the flip side to this is had that stock dropped any significant amount you'd be WAY in the hole.

Viper GTS

No he wouldn't. He didn't buy the stock, he bought an options contract.

He bought the contracts at .05, according to my math, he paid a total of about $350 for them. He would only be out his original $350 because the contracts would have expired worthless.

why doesnt everyone do this then?

Because most people wouldn't have a clue in understanding how options work and what a stock needs to do to actually make money off of them. They are very complicated, very high risk(depending on your position) and are riddled with hidden fees and commissions that steal away from your profits(if any).