|
|
Google Inc. |
You don't need a huge account. My brokerage firm lets me deal with
naked puts and calls.
The reason why you could have had such a huge return is because those
options have essentially no time value left (they expire tomorrow) 0
intrinsic value (they were expected to expire worthless). The only
thing they had was .10 implied volatility. However, nobody could have
forecasted GOOG would have popped 20% today.
For the most part, I don't suspect people lost their shirt on this,
just whoever was at the opposite end of those calls missed out on the
20% move that their stock had today. However they were recouped with
the $10 premium they got per contract hahaha. Typically when you write
covered calls, I buy them back before earnings if I'm hoping to get in
on the price movement.
> So the person most likely owned the stock and when he wrote the call
> was selling it and getting the extra 15 bucks for the call he wrote.
> To him it was a small small gain but a gain non the less.
> To the gambler who bought it he made the difference in price from .10
> cents (10 bucks cus that is really 100 shares per contract) and the
> 17.50 x 100 = $1750
> Welcome to the world of options trading.
> Once you understand its basics you will most likely spend a great deal
> of time in this market vs buying and selling the actual stocks.
> $10000 into $1000000 happened many many times today.
> Also 10k into 0 happened a tons as well lol