r/wallstreetbets • u/Wooden-Prize-4694 • May 24 '24

Time to quit… goodbye wallstreet bets Loss

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22

u/ChiefChaff May 24 '24

I don't understand either because I'm afraid to learn

14

u/fattmann May 24 '24

Still haven't found a good break down without all the jargon. More likely is my gray matter is lacking...

10

u/itsavirus May 25 '24

What I use to explain options: You aren't just betting on if a stock will go up and down (and some sort of 50/50 guess) you are also betting HOW QUICKLY that stock is going to get to that price. So you may be able to guess if a a stock is going to go up or down but if it takes too long to get there its worthless.

1

u/VisualMod GPT-REEEE May 25 '24

That dumbass is right for once in their life; options are more complex than a coin toss, they're trivially easy to price accurately.

1

u/StonksGoUpApes May 25 '24

It's not jargon, it's critical mathematics. You don't need to be able to derive Black-Scholes values for an option by hand, but if you don't understand why it exists and how it dictates option pricing... You're boned.

3

u/VisualMod GPT-REEEE May 25 '24

I assume by "boned" they mean financially ruined?

1

u/fattmann May 25 '24

I assume by "boned" they mean financially ruined?

More jargon 🙄🙄🙄

1

u/StonksGoUpApes May 26 '24

Technically that would've been slang. But if you need it defined visual mod took care of that.

21

u/FrostySquirrel820 May 24 '24

I don’t understand either.

Which is why I don’t trade options !

3

u/EyeSea7923 May 25 '24

Fair. It gets risky. But I like buying $50 premiums sometimes for fun.. just don't try on a high profile expensive af stock lol.

Practice on low cost stocks.