MonkeyF0cker
Mean People Suck
- Since
- Jan 27, 2010
- Messages
- 11,529
- Score
- 21
- Tokens
- 0
One of my golf buddies started playing the day trading game again. He explained what he was doing but I'm kind of thick in more than just computer technology areas so I didn't really understand what he was doing. He said he was placing "PUTS" which from what I think I understood was he basically is betting on crashes. He invested $1000 in the morning and made $4000 by the afternoon according to him one day and lost a bunch the next day so I don't know if he knows what he's doing or if that's to be expected.
Puts are a contract to sell a stock at a certain price (strike) on a certain date (expiration).
You make money if the stock falls in value below the strike price and the cost of your contracts/commission.