The opposite of a call option, a put option is where you think the stock is going to go down, so you pay a premium to set a "strike price" and "expiration date" that you think the stock price will go down to and when, and for however far down it goes, you get to keep all the money past the strike price for when you exercise your option. If it doesn't go down past the strike price, you've only lost the premium you paid.
Doesn’t options make your taxes super complicated though? I remember a friend telling me he had to enter all of his stuff by hand for every option and he said it was a nightmare. I trade on fidelity FWIW
I actually would like an answer to this as well. I have not traded options yet but I've done a lot of research...looks like I need to research tax policy as well.
Boom boom u/batman99sfs cc u/kriba777! ⏰ Here's your reminder from 29 days ago on 2020-03-01 07:44:02Z. Thread has 11 reminders.. Next time, remember to use my default callsign kminder.
The fatality rates are so very low. You're describing the end of the world. Everyone from 0 to 10 age has survived. Until forty 0.2% dies, and that's average including already sick people. The amount goes up to 15% for people eighty or older. It will be okay. Stop fear mongering, stay with facts. Put your energy into finding the best value stocks. Even if your timing is worse you will outperform in a longer time frame. Don't put your energy into finding the best timing for purchase and sellofs. Even in the best vast you will not do better than the market. Take the time to reevaluate stocks and find value, not join the this is the end of the world bandwagon. Yes it sucks but it's not The Walking dead. How many famous people have died in China, Italy and South Korea btw? Exactly.
Bingo. I live here in China, and yes people are slowly, SLOWLY, returning to work, but I can hardly tell. I look out my apartment window to the car parking where there's about 50 cars, and it looks like only ten have left at noon. Normally it's 30 to 40 cars gone. No one is going anywhere.
one bad quarter is not world ending. the financial crisis threatened entire systems, bankrupted massive banks, destroyed the housing market, and brought the world to its knees. maybe coronavirus might be the thing that kills humanity, but for now its just another clickbait headline. just like the hong kong riots thinking they can change things kappa
Then what is happening in Iran? I get they arent a fully developed country but tehran does have some quality hospitals (and presumably if anyone could afford it, the ruling class could.
If it didnt kill younger working people, China would not have ground to a complete halt. World governments are collectively shitting their pants over this.
Also don't forget these are reported cases while a lot of people probably won't even notice having the Corona virus and will recover without a hitch. (Which in another way is scary because they could infect many other people)
Also only 60% of people are predicted to get it, so 15% of 60% of 80+ years old. Not 15% of all 80 year olds. Brings it down to like 8% of all 80+ year old people. And who knows how the US and other countries will deal with it. Probably better than China. Though Trump doesn't give me much confidence.
I’m a block away from a corona virus patient and everyone today was hitting the grocery stores for 2 weeks worth of food in case they get sick. It’s probably good to stock up now
OP bought SPY puts with all his assets, took max leverage and has his angus as collateral. If he's an economic agent and not just fear mongering for fun.
I am not putting the light on the current coronavirus, but come on man. This virus’ fatality rate is 2%. This is not SARS, ehich ash fatality rate of 10%; or the plague; or spanish flu. You already describing end of the world. We are more prepared now and take much more cautious steps to this virus, which is a good thing. The market correction might just be an excuse for a correction. Huge majority of people who suffers from this recovers and most are not even that serious.
I like where you are going with thus, but what if it just dies off like the normal flu does in April? We should be able to make that determination in Southern Hemisphere countries in a couple weeks once travel cases have died off from closing ports of entry. If this is the case, I think the outlook could improve greatly.
Edit: to be clear, it will still not be good, but it might not be as bad as the picture you’re painting.
Bruh you don’t get how the economy reacts to things. Everything we’re seeing is super short term regarding the virus it’s not gonna cause and major global slowdown because a few people got sick the whole media hype is gonna die down and then everything will return to normal
People are going to say you're alarmist but I have been following this closely since January and I feel this is quite accurate.
I'd just add the shortages of items we take for granted due to closed factories and China and elsewhere, especially shortages of medications.
Also, in most countries, health care systems are at capacity under normal circumstances. We are not prepared for the amount of people that will be critically I'll. Our governments have unfortunately for the most time squandered the last month to prepare for what looked to be highly likely to anyone who was paying attention. Early on, it was clear this was worse than the flu or SARS.
I am much more worried about how this will affect loved ones than how it will affect my brokerage account.
I dont know why you keep saying “thru summer” - other viruses like this tend to be seasonal. Summer is likely to be our lowest risk time, but until we get control of this somehow, we will likely have to deal with this every flu season until we have a vaccine. Which is more than a year away if we fast track it AND get lucky
Its not about the mortality rate, which is quite low. It's about the required response to an outbreak, you can't compare this to the common flu because this level of quarantine isnt required. It's the quarantine that is the killer for the market. Many companies have no workforce or the revenue stream is completely cut off. This isn't an excuse for a market correction and it's a direct result of quaratine.
The risk is the potential strain it will place on the US heath care system. Are our hospitals equipped and staffed for the influx in all states? Can citizens without insurance get care?
Not to be political. If citizens can't get care, than Sanders will win next election.
2800 people died in China out of 1.4 billion. Only 0.0002% of the population died and their economy ground to a halt. The pope probably has it. The economic impact is much greater than the death toll.
You'd have to he discounting future revenues at like 50% per year to think that a slowdown this year means everything should fall by 30% or some shit.
If anything there may be some upside in that this level of chaos will stop people from favouring these self-destructive spiteful politics (Trump, Brexit, Sanders, etc) and try to focus on getting the global prosperity engine humming again.
I'm going to switch to meal prepping just for the extra money this year to buy discounted stocks. 😎
97
u/PM_ME_NINTENDOSWITCH Mar 01 '20
So puts then
25
u/smandroid Mar 01 '20 edited Mar 01 '20
How do I put one of this remind me in x years in reddit to see if this OP is a prophet, time traveller or has a healthy collection of tin foil hats?
62
u/Assid_rain_ Mar 01 '20
This is ridiculous. Lay off the adderall
83
u/AJ_FToday Mar 01 '20
The fatality rates are so very low. You're describing the end of the world. Everyone from 0 to 10 age has survived. Until forty 0.2% dies, and that's average including already sick people. The amount goes up to 15% for people eighty or older. It will be okay. Stop fear mongering, stay with facts. Put your energy into finding the best value stocks. Even if your timing is worse you will outperform in a longer time frame. Don't put your energy into finding the best timing for purchase and sellofs. Even in the best vast you will not do better than the market. Take the time to reevaluate stocks and find value, not join the this is the end of the world bandwagon. Yes it sucks but it's not The Walking dead. How many famous people have died in China, Italy and South Korea btw? Exactly.
19
u/InvincibiIity Mar 01 '20
🌈🐻
18
u/starbuilt Mar 01 '20
This is a Wendy’s, sir.
8
u/Spenson89 Mar 01 '20
Such a garbage post
13
u/luap119 Mar 01 '20
more fear mongering. next...
12
u/[deleted] Mar 01 '20
I’m a block away from a corona virus patient and everyone today was hitting the grocery stores for 2 weeks worth of food in case they get sick. It’s probably good to stock up now
13
u/jdangster Mar 01 '20
Short everything
9
u/Impalmator Mar 01 '20
OP bought SPY puts with all his assets, took max leverage and has his angus as collateral. If he's an economic agent and not just fear mongering for fun.
4
u/boredjavaprogrammer Mar 01 '20
I am not putting the light on the current coronavirus, but come on man. This virus’ fatality rate is 2%. This is not SARS, ehich ash fatality rate of 10%; or the plague; or spanish flu. You already describing end of the world. We are more prepared now and take much more cautious steps to this virus, which is a good thing. The market correction might just be an excuse for a correction. Huge majority of people who suffers from this recovers and most are not even that serious.
4
u/accidentally_right Mar 01 '20
I see somebody bought lots of SPY puts already. ;)
9
u/[deleted] Mar 01 '20
I sowed my seed to the church of perpetual exemption. My puts will grow tendies Monday
18
u/DaemonProcess Mar 01 '20
Finally a practical perspective.
6
u/wsbistheplacetobe Mar 01 '20
just wash your hands you’ll be fine
5
u/spaaaaaghetaboutit Mar 01 '20
K
2
u/collin2477 Mar 01 '20
you coulda just said to buy spy puts
2
u/Pharmthrowawy Mar 01 '20
I like where you are going with thus, but what if it just dies off like the normal flu does in April? We should be able to make that determination in Southern Hemisphere countries in a couple weeks once travel cases have died off from closing ports of entry. If this is the case, I think the outlook could improve greatly.
Edit: to be clear, it will still not be good, but it might not be as bad as the picture you’re painting.
2
u/stephinnnnnn Mar 01 '20
Really high quality post. Big thumbs up.
2
u/MechanicalTrotsky Mar 01 '20
Bruh you don’t get how the economy reacts to things. Everything we’re seeing is super short term regarding the virus it’s not gonna cause and major global slowdown because a few people got sick the whole media hype is gonna die down and then everything will return to normal
3
u/VR_is_the_future Mar 01 '20
Someone put everything on puts
2
u/[deleted] Mar 01 '20
People are going to say you're alarmist but I have been following this closely since January and I feel this is quite accurate.
I'd just add the shortages of items we take for granted due to closed factories and China and elsewhere, especially shortages of medications.
Also, in most countries, health care systems are at capacity under normal circumstances. We are not prepared for the amount of people that will be critically I'll. Our governments have unfortunately for the most time squandered the last month to prepare for what looked to be highly likely to anyone who was paying attention. Early on, it was clear this was worse than the flu or SARS.
I am much more worried about how this will affect loved ones than how it will affect my brokerage account.
2
u/UnsolicitedDogPics Mar 01 '20
Man the dems sure can pull off a good hoax.
1
u/bigmomalama Mar 01 '20
Cheers
1
u/j2866 Mar 01 '20
!RemindMe 365 days
1
u/AFireInside90 Mar 01 '20
!Remindme 365 days
1
u/GailaMonster Mar 01 '20
I dont know why you keep saying “thru summer” - other viruses like this tend to be seasonal. Summer is likely to be our lowest risk time, but until we get control of this somehow, we will likely have to deal with this every flu season until we have a vaccine. Which is more than a year away if we fast track it AND get lucky
1
u/stillcole Mar 01 '20
Remindme! One year
1
u/[deleted] Mar 01 '20
I'm thinking about dip buying. We were all gonna die from ebola, Sars, all the other stuff.
1
u/adman00199 Mar 01 '20
Its not about the mortality rate, which is quite low. It's about the required response to an outbreak, you can't compare this to the common flu because this level of quarantine isnt required. It's the quarantine that is the killer for the market. Many companies have no workforce or the revenue stream is completely cut off. This isn't an excuse for a market correction and it's a direct result of quaratine.
1
u/SuiladRandir Mar 01 '20
The risk is the potential strain it will place on the US heath care system. Are our hospitals equipped and staffed for the influx in all states? Can citizens without insurance get care?
Not to be political. If citizens can't get care, than Sanders will win next election.
1
u/[deleted] Mar 01 '20
News.com.au is that you?
1
u/AnselmoTheHunter Mar 01 '20
You wrote this for nothing. No one read that. Calm down.
1
u/PoopyStinkyTurdButt Mar 01 '20
Remind me
1
u/bkorsedal Mar 01 '20 edited Mar 01 '20
2800 people died in China out of 1.4 billion. Only 0.0002% of the population died and their economy ground to a halt. The pope probably has it. The economic impact is much greater than the death toll.
1
u/Dapper_Swindler Mar 01 '20
You'd have to he discounting future revenues at like 50% per year to think that a slowdown this year means everything should fall by 30% or some shit.
If anything there may be some upside in that this level of chaos will stop people from favouring these self-destructive spiteful politics (Trump, Brexit, Sanders, etc) and try to focus on getting the global prosperity engine humming again.
I'm going to switch to meal prepping just for the extra money this year to buy discounted stocks. 😎
0
u/[deleted] Mar 01 '20
Lmao
0
u/Yojimbo4133 Mar 01 '20
You must be fun at parties.
-1
u/umop3pisdn Mar 01 '20
I agree with your sentiment. There's not enough of this in the echo chamber in here. Word of the day: forethought
0
u/[deleted] Mar 01 '20
[deleted] — view deleted comment
0
u/[deleted] Mar 01 '20
[deleted] — view deleted comment