betting against Facebook

Out of context: Reply #13

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    Options can be dangerous because you get can lose a lot of money.

    Example, you buy an options contract for stock A at future price of $10 in 6 months with quantity of 100 shares. The stock tanks and it is at $2 in 6 months. At the end of 6 months, you have to buy $2 stock at $10.

    The person at the other end of the contract just made $8 off you per share.

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