This... doesn't fully belong on a developer's blog, but is more on personal finance. In this series I try to study concepts related to investing, so that hopefully I make better investment decisions in 2025!
There are a couple of things that interest me:
- 0DTE SPY -- purported to be the best way to earn quick cash
- Day trading -- looks lucrative from Reddit, but also a lot of black boxes I don't understand
- Fundamental analysis -- why US stocks plunge after DeepSeek announcement, and why they surged back up after their announcements
- Technical indicators -- Stochastic something something...
- $TRUMP -- cryptocurrency and all the hype about it being quick cash
1. 0DTE SPY
This video confirms that indeed there tends to be mistakes in the first year that causes huge losses, but could lead to gain over time.
In essence, it seems these are options that expire by the end of the day, and to win, you're hoping that the stock price will end higher than at the start of the day. This way, the purchase price you locked in at start of the day is sold for a higher price at the end, and thus you profit.
0DTE with examples: This video lists some examples of how it works. Key takeaways are that stock options have a "strike price", of which is a target price of the stock you're buying. The closer the actual price is to the strike price, the higher value your option (and thus profit, when you sell it). But... what determines the direction? Let's save that for the next session. I've already spent 1.5 hours on this instead of the intended 0.5 hours 😂
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