Stocks chance I missed on

[Ez Money 77]

So I am at work on Tuesday Morning , a casino for those who don't already know. I over hear one dealer talking to another dealer about the stock market. Now let me tell u this, I don't know a fuking thing about stocks at all. Nothing at all that u don't learn from like the movie "Boiler Room". Okay so anyways This dude Terry tells my friend Stephen that there is a big chance to make big money in the next two days. So now I start listening a little. I get in on their conversation as we are leaving work. Now I am gonna explain this how I understand it in the terms that I feel I can explain this. Okay Terry says he watches closely for companies that are about to turn their quarterly reports in and has some kinda info if the stock is gonna jump high or hit low. Goes on to say how 6 months ago some tea company lost a lot in one day after turning in their quarterly reports and he made like $10,000 off $500 in 1 day. Obviously I didn't believe it but just went on with it. He now talks about how NetFlix is about to make public there quarters reports and that they are going to nose tail to the ground. He said there is a way to I guess bet that this happens but not like betting. Its like saying u are making someone agree to buy the stocks at the current price even if the stock drops to from 80 to 40 a share. I dunno how the shit works exactly, I only talked to him for 5 minutes. To end this long story short, I was walking out with Stephen and now just him and I were talking about it and Steve says fuk it I'm gonna give Terry $200 to just put him in on it. He waits for Terry to catch up to us (he was cashing out behind us) I say okay bro well good luck if it hits I'm gonna jump in on the next one.

This all happened on Tuesday morning okay. Well something on the news reminded me about stocks and I remembered about this netflix thing. I think shit I'm gonna just look this stock up to see how it did. I went to this page https://www.google.com/finance?client=ob&q=NASDAQ:NFLX sure as shit, the damn stock has dropped 20 points from 80 points Tuesday to 60 points starting Wednesday . 25% drop. Now this seems unheard of to me but like I said I don't follow stocks.

Now I don't know how much money I could have made on this but it is a ton. It's not like normal buying stocks and going up. From what I heard is u only make money doing this if the stock drops or rises 10% if not u lose everything. My friend Stephen only invested $200 for one fuking day and I think he is going to make over $5000. Now I might be off on that I won't know for sure till Friday night when I go back to work but that was the number I thought he said he was hoping to make. I feel so pissed right now that I didn't just give $200 or $500 or anything. He said there was another one coming up soon again too.

Any of u know about these kinda things? This really possible to make that much money in ONE day?

[Boner_18]

He's talking about put options. You purchase the right to force a counter party to buy the shares at a given price on or by a given date.

Say a stock is at $80, you buy 1 of the August puts with a strike of $70 for $.30. On or by the expiration (generally the third friday of the month) if the stock falls below $69.70 it will be profitable for you to exerices. You simultaniously buy a share for 69.70 and force your counterparty to buy it at 70.

These options work for lots of 100 shares, so a single put option that costs .30 is really $30 but covers 100 shares at a time. Setting up an options account can't be done over-night. And without inside info this guy couldn't have known which way to make a 50/50 directional bet on earnings.

[CaliSwag818]

thx for the info EZ.
let us know how much you're friend made with that $200 when you see him friday.
also lets us know

when the next big "one drop" hits

[Ez Money 77]

I will let you know and I know for sure that he did hit this I saw him Tuesday Morning when he talked about this and then I saw him Wednesday morning at work when it already was about to go down he said after hours or something. I don't know if he had inside info or what but I know for a fact he knew when the price still showed 80 per share on Tuesday. I will let ya know what my buddy made on the 200 bucks. All the words u just talked about in your post Bone were the exact foreign language he was speaking to me. I remember those words.

[Ez Money 77]

I just checked again and the stock is down another 3.44 pts right now since when I posted this. So now down over 30% I don't know if he already got paid out on this or not though, I think he has. Ill update when I know more.

[Sledge187]

[thellama]

You can do this over and over again with a few stocks. This happened with facebook a few months ago, bought calls at 106 strike before earnings, after earnings stock went to about 118. It was low risk, the stock was already priced for a good earnings report. It's a safe bet, if the earnings come on target and the stock stays the same, however if the earnings come in higher the stock will jump. It was a profitable move, especially if you buy 5-10 calls at a time. Obviously im not dropping that much coin to call away 1000 shares of FB at 106 a share, so I'm flipping those calls onto someone else. I did keep 100 as it's a good one for the IRA.

QCOM was another one that just shot up. NFLX having a poor quarter was no huge surprise... Im actually surprised it moved as much as it did. It will just creep back up to where it was over the next few weeks. Stock market is fun, especially right now. That brexit scare was a great chance to make money. Stocks that had no reason to drop dropped. Great way to start is get a roth ira, and if you havent been dumping 5500 a year into it, you should start... get some good div stocks from some solid companies and look into div reinvestment strategy.. an easy 'set it and forget it' way to set up your retirement. Options trading can be risky if you dont know what you're doing, and confusing... lots of great videos out there. I read a lot and watched a lot before getting started.

[eidolon]

I have a family friend who did this for a few months last year and lost $300,000

[Ralphie Halves]

Warning: Square-ass thread

[kidcudi92]

Warning: Square-ass thread

[DrunkHorseplayer]

I don't know where you saw NFLX stock at $60 because it dropped from $98.81 to $85.84 in one day. I trade stocks quite a bit and this stock is a good buy; right now it's at $91.72.

[jjgold]

eventually you lose it all

It looks easy but just a sucker game

[Bostongambler]

Take a look at OPTT .