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submitted 3 days ago by plinky@hexbear.net to c/news@hexbear.net
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[-] Acute_Engles@hexbear.net 49 points 3 days ago

So i should have bought the dip

[-] MizuTama@hexbear.net 42 points 3 days ago

Puts on the US. Massive bull trap ahead 🫡

[-] Acute_Engles@hexbear.net 15 points 3 days ago

I don't think I've ever had the money to invest anything but what's a 'put' in contrast to a 'short'?

[-] MizuTama@hexbear.net 14 points 3 days ago

A short is based on borrowed stock, basically you borrow a bunch of shares from someone for and sell them for money, with a promise to return them later. If it goes down, that means when you rebuy it to return it's much cheaper and you can pocket the difference.

A put is a contract that you make with someone that says someone will buy a stock from you at a certain price if you decide to sell. The contract comes with an expiration date and a fee for you based off of calculated likelihood. The idea is, if the stock drops below that amount and then drops enough to cover the fee (the breakeven point), you invoke the contract and make a profit.

There is a lot more to it including reselling the contract etc. but frankly it's a glorified gambling hall for the most part unless you're in the know or have enough influence to move it yourself for specific tipping points.

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this post was submitted on 09 Apr 2025
207 points (100.0% liked)

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