Recent comments in /f/wallstreetbets

grimkhor t1_jae5puv wrote

Reply to Motley fools by MeestarT

Anyone who follows tips of someone with fool in their name deserves everything they get.

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CodeMonkey1 t1_jae5ooy wrote

Delta is how much the option price will change relative to the stock price changes, and gamma is how much the delta will change as the stock price changes.

Imagine a stock is $100 per share. You buy a call option for $1.00 with a delta of 0.10. If the stock goes to $101, your option is worth $1.10.

At the same time, as the underlying price changes, the delta itself will change. So imagining the above option has a gamma of 0.01. After the underlying moves to $101, the option delta is now 0.11. So if the price moves up again to $102, the option is now worth $1.21 and the new delta would be 0.12.

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randompittuser t1_jae4u05 wrote

I'm convinced most people are incapable of comprehending nuanced language. Here's what he said regarding 75bps rate hikes in March 22:

"A 75 basis point increase is not something that the committee is actively considering."

And here's what he said about raising the target inflation rate:

"We're not considering that. We're not going to consider that. Under any circumstances. We're going to keep our inflation target at 2%. We're going to use our tools to get inflation back to 2%."

So, you see how the first statement wasn't a dismissal of 75bps rate hikes? But rather a statement about what's been presently considered? There's a lot less nuance in the second statement.

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Piranha-Pirate t1_jae4du8 wrote

Reply to Motley fools by MeestarT

Haha, yep, I got scammed. Of course, if an individual bought equal positions in every Stock Advisor recommendation since inception, you do have market smashing returns. Yeah, if you bought disruptive tech picks from 2020-2022 you got rekt. They failed to recommend any defensive stocks with the notable exception of Waste Management in 2021.

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