ilmscore | Prediction Details
"so scenario number one the share price of Intel goes down so you bought Intel at $32 a share and let's say that in two months Intel Falls in price by $2 it goes from $32 to30 so in this scenario I'm not going to use the call option that you sold me because why would I buy Intel from you at $34 four when I could just buy it on the open market for 30 so in this scenario you sold me a contract that turned out to be worthless for me okay so for you Intel Falls from 32 to 30 you lose $2 on the stock right but you made $150 by selling me the call option so you hedged and you're only down 50 instead of $2 so it's a good thing that well in this scenario that you sold me the call option"
By ClearValue Tax | October 15, 2023 | Pending
From video
Options Trading For Beginners: Complete Guide with Examples 00:16:37 - 00:17:26
Interpreted Prediction
If Intel stock falls from $32 to $30 in two months, selling the call option for $150 hedges the $2 stock loss, resulting in a net loss of only $50.

Prediction Details

Ticker
INTC

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