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What Does FD Mean On Wall Street Bets?
So you’re new to Wall Street Bets, you’ve got your free Robinhood stock and you’re ready to start losing money. You see all the cool kids talking about FD’s but you have no idea what they mean. So what do you do next? Ask your new friends at Wall Street Bets of course! They then proceed to give you quality answers like “Nobody tell him”, seemingly real answers like “Fiduciary Duty”, and obvious troll answers like “Fellatio Deliverer”. But you know they’re not telling you the truth. They’re just keeping the Tendies for themselves!
Well the truth is FD stand for “Faggot’s Delight”
crude, I know. But its the truth. If rough language is something that offends you, I recommend staying far away from Wall Street Bets and forgetting you ever found that sub reddit. For you degenerates that couldn’t give two shits, welcome aboard! May your Tendies be crispy and plentiful!
So why do they call it a Faggot’s Delight?
You might think Wall Street Bets is homophobic but in actuality they are extremely pro-gay. In fact, all the mods are gay! The sub even hosts an annual Rainbow Dildo’s for their subreddit art. The reason why they’re called “Faggot’s Delight” is because whenever you trade them they have a tendency to fuck you in the ass so much that you’d have to be a homosexual to enjoy it. That’s the simple reasoning behind it.
What actually are FD’s then
FD’s is Wall Street Bets slang for out of the money options expiring within a week. They are very high risk and have a high chance of failure but the small chance of success can have tremendous upside. Basically options give you the opportunity to buy 100 shares of a stock upon the expiration date. However you don’t need to wait until the expirations date to make money. You can actually buy and sell options based on the current price of it. The price of an option is determined by its intrinsic value plus its time premium. Since FD’s are usually out of the money there’s no intrinsic value to worry about accounting for. So all of the price comes from time premium which in a weekly option should be close to zero. Wall street betters are basically betting that the stock price will go above their strike price plus the cost of the premium before the expiration date. If it does they’ll make a ton of money since FD’s tend to be highly unlikely and if an option somehow does meet the strike price then that wall street better just won the stock market lottery and can hit the fabled 10 bagger (1000% gain).
There you have it, you now know what an FD is. Enjoy your time on Wall Street Bets and make sure to document your impending bankruptcy for the rest of us to enjoy!
