Beginner’s Guide to Call Buying

The popular misconception that 90% of all options expire worthless frightens investors into mistakenly believing that if they buy options, they’ll lose money 90% of the time. But in actuality, the Chicago Board Options Exchange (CBOE) estimates that only about 30% of options expire worthless, while 10% are exercised, and the remaining 60% are traded out…

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How r/WallStreetBets took down a hedge fund and rode GameStop

Bets against GameStop’s stock, followed by a campaign to juice the video-game chain’s shares, sent its stock price soaring before it tumbled Thursday when trading app Robinhood banned purchases. © Janet Loehrke illustration on Gamestop stock The phenomenon involves two trends championed by individual investors in recent months — options trading and momentum investing — that…

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