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Log In to CommentI believe the way options work is it's a contract for "the right to buy/sell stocks" you put down a certain amount of money called a premium to say "at this date or during a certain period I have the option to sell you this stock for what it is worth right now when I'm placing this bet" with the idea being that if you bought the right to sell the stock for 50$ a share and it only cost 25$ a share at some point during the period you can buy up the specified x amount of stock and sell it for the guaranteed price of 50$ despite it only being worth 25$ but if you don't sell that specified amount of stock then the premium is gone so you have to either buy overpriced stock or give up on the premium depending on which amount is higher
So from my understanding MC says;
here’s 13b I’m betting the stock crashes within “x” amount of days so whatever the % dropped at the end of the allotted time will be their earnings so 5000% earnings on their 13b investment and if it went up I guess they’d owe a certain amount but I think it’s capped idk though 🤷♂️
Am I the only one who still doesn't know how they gain profit 😭
Yoshaaa! We dumb but We happy today👾
So…they bet on it falling ? Don’t you have to buy stocks or so versus rival stuff but glad it worked out
500 million usd? Wild.
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