Today’s post involves a story from someone that made money in the stock market. This is an interesting story to read about because it shows that during uncertain times, there will always be people that can take advantage of the situation. These people are the ones investing with calls and puts. This strategy isn’t about buying long term. You’re trying to bet against the stock or for it in hopes of making a profit.
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What Are Call Options?
Call options is when an investor thinks that the price of a stock is going to go up. If the price does go up before the expiration date of the contract, the buyer has the opportunity to buy 100 shares and profit the difference. If they decide to not buy shares then they become the seller and sell their contract for a premium.
The same concept goes for put options in which you are betting for the stock to go up. I know my explanation on calls and puts are very brief, but that is because you are not here to read about all of that. You clicked on the articles to read about how some Reddior Made $566K from Amazon Calls.
The Success Story
A redditor by the name anonrose went from $34,000 in call options to $566,000 in one week. These types of gains you really only hear hedge funds making, but congrats for a single person making the right call. It should be noted that investing like this does involve a lot of risk and in some cases those with deep pockets can see enormous profits.
Below is the original post:
Been lurking the sub for a couple of years, you people are fantastic. I attached an image of my positions and how they changed over the week but I cashed out my initial input on Tues and rode the rest up until this morning.
Look at a video of the gains here
Why am I writing about this? Because I want to show you that investing your money (especially with everything going on) is an opportunity that will benefit you long term.
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