To The Moon

 The Black-Scholes model was devised in 1973 by Fisher Black and Myron Scholes. Robert Merton helped edit the original paper written by Black and Scholes, and wrote his own paper about their model.The Black Scholes model made a few assumptions. Options can not be exercised before expiration (European Style). There is normal distribution, meaning we wouldn’t see a “Volatility Skew”. There is no dividend. They also didn’t figure in transaction costs (commissions). Commissions in US markets have gone to zero in the past few years, and institutional traders do not pay commissions for their proprietary trading, so that assumption is now true,There are a few models that tweak the Black-Scholes model. William Sharpe had tweaked Black Scholes in 1978. The Cox-Rubinstein (Cox-Ross-Rubinstein)

 Bill Gates is making a woke statement. Bill Gates and Elon have not had great things to say about each other in the past.It is impossible to know if the position Bill Gates said he had on, short $500,000 of Tesla$Tesla Motors(TSLA)$ stock, is still on.Hedge funds over a certain size have to report their long positions every quarter. It is on a form called 13-F. It is outdated, but it’s at least something. For example Hedge Fund A files a 13-F at the end of Q2 2022, June 30th. They must file the Q2 13-F by August 15th. They said they owned 250,000 shares of Tesla on June 30th. It’s now September 9th. Did they add to their Tesla position in the 3rd Quarter, sell their position? We will find out on November 15th, 45 days after the end of Q3. They

Almost all investors will never short a stock, it’s mostly professionals.If you buy 100 shares of XYZ at $50 per share, you pay $5,000 (let’s forget buying on margin, borrowing money from your broker to pay for the shares). Your risk is $5,000 if the stock goes to zero (unlikely, but that’s the risk). Let’s ignore that you are entitled to voting rights as a shareholder, you could receive a dividend if one is paid. Your outlook is the stock price will go higher, hopefully considerably higher.Someone shorting those shares (Trader A) has the opposite outlook. The stock is at $50, they think the shares will go down 40% to $30 per share,They do not own any shares. They sell 100 shares of XYZ at $50. Their broker has to go out andborrow100 shares from someone who owns 100 shares. The person who

A Butterfly Spread is a debit vertical spread AND a credit vertical spread, same stock, all calls or all puts, same expiry.Example. XYZ is trading at $48. You think it may go up 15% (~$55).Trade: Buy one 50 strike call at $3, sell TWO 55 strike calls at $1.50 each, buy one 60 strike call at $0.50. Total outlay and risk is $0.50. Expiry for all is 60-days.Look at is as owning one 50–55 call debit spread, and short one 55–60 call credit spread.Breakeven points are $50.50 and $59.50. Everything in-between is a profit. Max gain, if the stock lands at $55 is $4.50 (50 strike call you own is $5 In-The-Money, 55 calls and 60 call expire worthless, position cost you $0.50 to initiate).AnIron Condoris a call vertical spread AND a put vertical spread, same stock, same expiry.XYZ is trading

Most countries and most brokerage firms around the world have a minimum age requirement of 18 years old. There are exceptions. In the US some states allow a parent or guardian to co-sign on the account. A few states have a minimum age of 21 years old.If you qualify, most brokerage firms have a very low minimum balance requirement, maybe $100, $500 or $1,000.The best age for you to learn about investing is now! Find a very basic book on stock investing or go to your brokers educational web-site for free education.Start following stocks you know. Do all your friends use a particular App, use a streaming service, have a similar hobby (computer gaming, reading about EV’s. etc.)? Look at the companies in that industry. If you are convinced a particular stock will do well, invest in only a few s

If you sell a Call option and it expires, your obligation to deliver stock expires. If you sold it short the margin held by your broker was just released. If you owned the underlying shares, they are not encumbered (you assumed an obligation to deliver them), those shares are (in a margin account) fully marginable.Selling a Call and having it expire is good. If you were hoping to have it assigned you can now sell the shares or sell a new Call option against those shares. Good luck. mkhttps://www.quora.com/profile/Marty-Kearney-5

It depends! The last 100 years, the last 50, the most recent 10 years?Most studies point to roughly a 10% average return. This includes dividends. 10% sounds pretty good, but remember to factor in the rate of inflation, as well as knowing what the risk-free rate of return has been. The risk-free rate of return is usually measured by looking at the T-Bill (U.S. Treasuries) Rate. The 10-year is currently ~3.10%. Rates are inverted (a bearish sign), the 5-year is above 3.25% So stocks returning anything over whichever rate you use is considered good.Most measurements of inflation in the US are notoriously low. Inflation now measured at ~9%, would be closer to 11.5% if the government didn’t change the weight of components as they did many years ago.So over the long term, stocks outperform putt