With casinos down, are problem gamblers moving to the stock market??

[systematictrader]

thanks to both you guys, you got me on this one - my maths suck really bad, it was just me believing Hertz would not go to zero.

let me know if my maths calculation below is incorrect.

buy stock at $4, sell $1 covered call get $3.45, $0.55 money at risk if stock goes to zero

sell $1 put get $0.60, $0.40 risk if stock goes to zero

total risk to zero $0.95

is this a small risk or huge risk (yes it's still a risk) for this trade on a company such as Hertz - could they bankrupt, will the stock be sub $1 on option expiry date- if so (all unknown, zero guarantees) then my previous post was stupid to say it's not low risk?

stock above $1 on expiry net $0.45 on the call + $0.60 on the put = $1.05 profit

time stamp, see what happened

For your information the short put and covered call are identical positions so your just doubling up

they bot really connected or related

 

[systematictrader]

Here is a better trade
Buy 3.5 call at 1.10 may
Sell 3.5 call 1.45 July

if stock bankrupts you make .35

if stock flyes up you also make .35

your worse case scenario is stock sits at 3.5 and the may call expires and then your short only one call/leg

you can do the same with selling puts
Same outcome

 

[systematictrader]

With a stock in bk news most likely wont sit where its at

 

[ironchef]

Here is a better trade
Buy 3.5 call at 1.10 may
Sell 3.5 call 1.45 July

if stock bankrupts you make .35

if stock flyes up you also make .35

your worse case scenario is stock sits at 3.5 and the may call expires and then your short only one call/leg

you can do the same with selling puts
Same outcome

I am impressed.

 

[wrbtrader]

That is all I'm saying. Much of the money that went to things like sports betting has now gone into the market. HOPE PEOPLE KNOW ABOUT STOP LOSSES AND WHAT HAPPENS WHEN A BID/ASK DISAPPEARS!!

Maybe the money went to hoarding meat, can foods, hand sanitizers, alcohol, cash and guns/ammo.

wrbtrader

 

[kalvinbrown]

I think that trading is the same as bets, not like a casino, but many gamblers will move in online gambling and this will be the worst thing which they will do. I have a brother who was addicted to gambling and I spent many months and money to help him with his dependence and I can't tell you how hard that was. Thanks to my friends who helped me and gave me gamstopgambling and with its help, now I am calm because my brother is in the blacklist in all the gambling sites and he cannot register in them.