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Thanks but then what's the difference with "call" and "put" derivatives

Posted by: kruger on Oct 25, 21:43 in response to Chefbobcat's post Also, the terminology might be confusing you...

Hi ok I get it guys ! Well almost all of it !

Flash and Chelbobcat i understood the concept from your explanations, lapuckfan I got the first part of yours but the whole part with "Really, when you "short" a stock, you are selling shares that you don't own yet, and when you "cover" you are buying the shares you previously shorted" just f***ed with my brain lol, it's completely the opposite of the other explanations to me lol !

About your explanation Flash : i'm still confused on one point. If you originally buy it at 100$ a share and then HSX drops the price at 75$ a share but gives you a 25$ per share, then it's still 75$+25$=100$ so your portfolia value hasn't changed, you didn't make money you just got reimbursed on what you payed in the first place. Or is the profit coming from the fact that between the 100$ price and the 75$ price from HSX the stock might have gone up?

Now that I get it, I'm a bit more curious as to what's the difference between betting on the marker (based on the success of the movie) by buying long or short and the buying of puts and calls (derivatives if I'm correct). These also let you bet on the success or failure of a movie if I got it correctly.

Thanks again for the help guys !

What's the difference between selling and short selling ? (i read the help section :s) kruger Oct 25, 12:10

answer... RazorHawk Oct 25, 13:27

Thanks but still lost ! kruger Oct 25, 16:58

addition on last reply kruger Oct 25, 17:02

Here's some additional thoughts on Shorting.... Flash Oct 25, 17:26

adding more... lapuckfan Oct 25, 17:53

Also, the terminology might be confusing you... Chefbobcat Oct 25, 19:46

Thanks but then what's the difference with "call" and "put" derivatives kruger Oct 25, 21:43

My previous post contains more than just the title (sorry can't edit) {nm} kruger Oct 25, 21:44

Let me try to use simple terminology...if possible. mrbinns A DECADE AT HSX Oct 25, 22:28

Calls and Puts are Derivatives. They are based on opening weekend grosses... Chefbobcat Oct 25, 22:35