OT: Investing/Stocks/Bonds/Mutual Funds/Crypto

[glenn]

I've been a part of a few collecting communities over the years and there is always a spectrum. On on end you have people that genuinely like the thing they are collecting (toy, limited art, shoes, whatever). In the middle you have those that still collect for fun but have enough knowledge of the system so they can sometimes make money or break even. On the far end you have people that are only in it to speculate and profit. NFTs seem like some tech bro said, "hey, what if we just skip the fun parts and go straight to gaming the system for profit."

[hege53190]

I've been a part of a few collecting communities over the years and there is always a spectrum. On on end you have people that genuinely like the thing they are collecting (toy, limited art, shoes, whatever). In the middle you have those that still collect for fun but have enough knowledge of the system so they can sometimes make money or break even. On the far end you have people that are only in it to speculate and profit. NFTs seem like some tech bro said, "hey, what if we just skip the fun parts and go straight to gaming the system for profit."

I don't understand a lot of things that people pay money for. This is one of them. I completely don't understand it.

You "OWN" a digital photo that looks exactly like something you can get that is readily available for free.

I understood sports cards when they came out. With the internet I don't really understand sports cards either but at least you get a physical piece of property. To each their own though. Things that I don't understand have made people a lot of money. So more power to them.

[midranger]

My whole thing is this.

You buy a Giannis Dunk for 10k. He has 5 dunks just like it tonight. And tomorrow. And the next game. And so on.

Who’s buying that dunk from you for 11k when they can get one of the new ones just like it for 9k? Or just view it on YouTube for free?

Short term novelty speculation. If you have real money tied up in this, I’d dump immediately.

[humanrefutation]

I'm not touching TopShot, mostly because I think the buy in is way too high and way too exclusive. But I don't see much a difference between that and sports cards. Sure, anyone can find a gif of Giannis dunking, just like anyone can find a photo of Honus Wagner in a Google search. The value is in owning an item that has a limited number and is extremely valuable to a specific community of collectors.

The question is whether that community will be maintained over time and whether the value of these items will increase correspondingly as you see with sports cards. That remains to be seen. I think the one major distinction is that TopShot cards won't need to be authenticated or rated for quality like sports cards are - you won't have to worry about corners being bent or creases in the middle or other signs of aging. I'm not sure if that'll help their longterm value, as you won't be able to generate the increased value of having a rare card in pristine condition 50 years from now.

[WeekapaugGroove]

If we're being real most collectables are stupid and worthless to some degree. A physical sports card is just a piece of cardboard, a painting is just canvas and paint. I can buy plate at target for cheap and it's probably better quality than an antique. An old car will be less reliable and efficient than a new one. Hell a diamond is just a hard stone. (Not a perfect analogy because there are some practical uses for a diamond). Value is only there if someone finds value in it, but with billions of people in this world it only takes a small percentage to see value for something to have value.

Then look at crypto, Bitcoin is basically a large pyramid scheme. The only real value is the belief someone later will pay more for it and that person is only buying it because they hope a future person finds value. If everyone at once decided Bitcoin was worthless it would be. It's just made up digital money. The funny thing about pyramid schemes is they actually work and continue to work as long as you continue to expand.

Now personally I'd caution people who actually want to 'invest' real money in any NTF because it's so new no one really knows if it will last. Now if you want to **** around with it can be fun. I threw a couple hundred down on Top Shot a few weeks ago and now have $1000 in my account and a collection of some moments of dudes I like that have a current resale 'value' of like $800. It's been fun buying and selling but more in a game way than investing.

As far as collectables, I get what you are saying. But physical collectables have that touch and feel that can't be copied. NFTs can easily be copied. I think this NFT movement is more about principle in trying to get digital artist a way to make money. If it stays like this, I think it'll be worthless. Eventually they will have to add some rights or encryption so people can't copy or screenshot & share. But what do I know.

As far as Bitcoin, you were probably right when Bitcoin first started. Now there are so many alt coins that actually have meaningful projects and programs. And they tend to prefer Bitcoin as a payment.

EDIT:

Since Jack Dorsey is "tokenizing" his tweets and selling them. It has a 2.5m bid. My question, what does the owner actually get? Jack's first tweet is still going to be on twitter and viewable.

In this case, a screenshot of a tweet isn't exactly the same as an actual tweet.

So maybe if Jack deletes the tweet, the Tokenized version will be more valuable and might actually have a use?

I got no freaking idea...

The buyers of that NTF tweet or any of the ultra expensive NTFs get to show off to their other rich buddies. That's it, that's litterally the only purpose. It's dumb but rich people spending money on **** simply because they can has been going forever.

Sent from my SM-G986U using RealGM mobile app

[jschligs]

Does anyone wanna come over and see my Bucks pennants I bought off Amazon for $8/each? I actually lined the drop down of the HVAC in my basement with them and it looks pretty cool. I don’t have rich friends and I’m not rich.

[M-C-G]

Ok, can someone explain it to me like I am 4? Looking at Call Options.

As far as I can understand, you pay a price to have an option in the future that reserves 100 shares (I think). If the stock price exceeds your strike price, you get those shares? Or you get paid out like you own the shares at the strike price?

And if so, does it transact automatically once the strike price is met or is there an action to close your Call Option?

Lastly, does a lot of Call Action on a stock typically mean people expect upward movement? I get the idea of Volume, but Option Interest seems to significantly higher but I haven't quite figured out what it all means.

I have read a lot and I have watched a few videos and I think I get the gist but just want someone to clear it up if they have dabbled in options before.

[midranger]

I'm not touching TopShot, mostly because I think the buy in is way too high and way too exclusive. But I don't see much a difference between that and sports cards. Sure, anyone can find a gif of Giannis dunking, just like anyone can find a photo of Honus Wagner in a Google search. The value is in owning an item that has a limited number and is extremely valuable to a specific community of collectors.

The question is whether that community will be maintained over time and whether the value of these items will increase correspondingly as you see with sports cards. That remains to be seen. I think the one major distinction is that TopShot cards won't need to be authenticated or rated for quality like sports cards are - you won't have to worry about corners being bent or creases in the middle or other signs of aging. I'm not sure if that'll help their longterm value, as you won't be able to generate the increased value of having a rare card in pristine condition 50 years from now.

The issue is, yes you can find a picture of Honus Wagner on your phone that looks like the card. But a card and phone are two very different things, with different feel, smell, nostalgia, etc... just a different experience all around.

I’m really not sure what difference is between watching a clip as an NFT on your phone vs watching the same clip as a non-nft on the same phone. It’s literally the same experience.

It doesn’t make sense to me.

[jschligs]

Ok, can someone explain it to me like I am 4? Looking at Call Options.

As far as I can understand, you pay a price to have an option in the future that reserves 100 shares (I think). If the stock price exceeds your strike price, you get those shares? Or you get paid out like you own the shares at the strike price?

And if so, does it transact automatically once the strike price is met or is there an action to close your Call Option?

Lastly, does a lot of Call Action on a stock typically mean people expect upward movement? I get the idea of Volume, but Option Interest seems to significantly higher but I haven't quite figured out what it all means.

I have read a lot and I have watched a few videos and I think I get the gist but just want someone to clear it up if they have dabbled in options before.

You are correct. You pay a premium for the right to buy 100 shares at X price. That premium fluctuates based on current price, volatility, and time to expiration.

You choose whether or not to sell the premium at any time before expiration OR execute the option. If you execute the option you have to buy all 100 shares at that strike price you set. If you see a lot of call action on a stock, typically yes, that means people expect upward volume. However, like I said earlier, current share price, volatility and trajectory and time all factor in on the price of that premium.

It's important to learn what affects the premium on an option. Learn the greeks, theta, gamma, delta, etc. And that will help. I sent this explanation to a friend the other day in a ELI5 way.

"Let’s say you like Ford. For is at $10.50ish right now. You think it’s going to hit $15 and more before the summer. So you look up what that would cost for that contract. The premium on that call contract, a $15 call expiring June 8th, costs you $150.

As the price of Ford continues to rise, the premium on that contract rises as well. So if it goes to $12, you could in theory sell that contract for $180 and you make $30.

Or you could hold that contract. Let’s say it’s June 3rd, 5 days before expiration and the price is at $18/share. You can exercise the contract and buy 100 shares at $15, which would cost $1500. So you paid $1500 PLUS the premium of $150 for 100 shares. You then could sell those 100 shares instantly for $1800 (100x$18 share price). Which would be a profit of $150. "

Options are incredibly volatile and it's important to start small. Also, if you play options during earnings, prepare for even more volatility.

[M-C-G]

Ok, can someone explain it to me like I am 4? Looking at Call Options.

As far as I can understand, you pay a price to have an option in the future that reserves 100 shares (I think). If the stock price exceeds your strike price, you get those shares? Or you get paid out like you own the shares at the strike price?

And if so, does it transact automatically once the strike price is met or is there an action to close your Call Option?

Lastly, does a lot of Call Action on a stock typically mean people expect upward movement? I get the idea of Volume, but Option Interest seems to significantly higher but I haven't quite figured out what it all means.

I have read a lot and I have watched a few videos and I think I get the gist but just want someone to clear it up if they have dabbled in options before.

You are correct. You pay a premium for the right to buy 100 shares at X price. That premium fluctuates based on current price, volatility, and time to expiration.

You choose whether or not to sell the premium at any time before expiration OR execute the option. If you execute the option you have to buy all 100 shares at that strike price you set. If you see a lot of call action on a stock, typically yes, that means people expect upward volume. However, like I said earlier, current share price, volatility and trajectory and time all factor in on the price of that premium.

It's important to learn what affects the premium on an option. Learn the greeks, theta, gamma, delta, etc. And that will help. I sent this explanation to a friend the other day in a ELI5 way.

"Let’s say you like Ford. For is at $10.50ish right now. You think it’s going to hit $15 and more before the summer. So you look up what that would cost for that contract. The premium on that call contract, a $15 call expiring June 8th, costs you $150.

As the price of Ford continues to rise, the premium on that contract rises as well. So if it goes to $12, you could in theory sell that contract for $180 and you make $30.

Or you could hold that contract. Let’s say it’s June 3rd, 5 days before expiration and the price is at $18/share. You can exercise the contract and buy 100 shares at $15, which would cost $1500. So you paid $1500 PLUS the premium of $150 for 100 shares. You then could sell those 100 shares instantly for $1800 (100x$18 share price). Which would be a profit of $150. "

Options are incredibly volatile and it's important to start small. Also, if you play options during earnings, prepare for even more volatility.

That is helpful, thank you. So in theory, let's say I think Tesla is going to explode when there Thingamabob4000 comes out in fall, I could buy a call option now for lets say $150, 'locking me in' to a 1000 strike price. Along the way, the share goes from 700 to 1100.

I can then exercise my call option, which would be my 100 shares at $1000 dollars. I would need to come up with $100,000 to purchase the shares and if I am in the money, I could either hold those shares or turn around and close out my position and sell them at $1100. Thus making 10k less my $150 call option price.

Assuming it is not in the money or for whatever reason I couldn't cover the purchase of the shares, I could just let my call expire and I am just out the $150 when it expires?

Also just want to point out, whatever I do here will be very small and not actually TSLA. But I would like to dip my toe in the water with an amount I have no problem walking away from or covering if it is in the money.

[jschligs]

You pretty much hit the nail on the head. If you can't exercise the option due to lack of funds, you can sell it at any time for whatever the premium is worth, either profit or loss depending on the movement of the share price (and other factors).

The best experience is just hoping in and doing it, or sign up for ToS' paper money and do it with fake money for a bit. I think I actually started with Ford because you can get options pretty cheap.

[SupremeHustle]

Ford and VW stocks looking pretty good. I think VW will be hit $100 in two years. I have no data on that. Just a gut feeling.

And I'll be forever thankful for the FCEL tip. I can retire now.

[M-C-G]

You pretty much hit the nail on the head. If you can't exercise the option due to lack of funds, you can sell it at any time for whatever the premium is worth, either profit or loss depending on the movement of the share price (and other factors).

.

Ok, so this explains the Volume vs Option Interest as well.

I'm going to think through this, but if there is a ton of call interest, makes me think people are optimistic about the stock. I'm fairly certain funds are using calls and puts to hedge their positions, so now how do we use this to help us make monies.

[DavidDunn21]

Does anyone wanna come over and see my Bucks pennants I bought off Amazon for $8/each? I actually lined the drop down of the HVAC in my basement with them and it looks pretty cool. I don’t have rich friends and I’m not rich.

Post a pic of them jawns

[humanrefutation]

I'm pretty much in a holding pattern right now. Haven't sold anything and have bought anything in a couple months. Just sort of seeing how the market shakes out as we approach the end of the pandemic. I imagine that you'll see a lot of boosts to tourism and hospitality sectors, especially. Everyone I know is just dying to travel.

[SupremeHustle]

I bought AMC before it became a meme stock and I'm holding it. It'll get back up to between 25-30 bucks before it's all said and done. I got in at 4 bucks.

[MickeyDavis]

I averaged down on NSPR last Wednesday at .68 and it shot up to .91 today. It's about time I had a profitable day. My other 3 were all green today too. Still down overall since I re-entered picking.

[M-C-G]

After thinking about it, these NFTs would be great for money laundering. Put that in your back pocket for a rainy day.

[WeekapaugGroove]

After thinking about it, these NFTs would be great for money laundering. Put that in your back pocket for a rainy day.

Crypto Punks

Sent from my SM-G986U using RealGM mobile app

[vital_signs]

Hopped on the GHVI bus the other day, hoping the Matterport merger results in a nice runup when finalized in Q2 and aftewards.