Yet another fun thread in a fun environment as people are bored at home
Recently, due to the sharp increase in prices, views have been growing stronger and stronger on both sides - one side thinks it’ll go up, other thinks it’ll go down
Has anyone “written” call options for your speculator friends? Or too complicated?
Think it would be interesting if someone with a psa 10 jungle 1st edition holo for example, could sell call options on his set, e.g. collect $1k and guarantee that he would sell his set for $25k anytime over the next six months, beyond which the option expires
This wouldn’t really work because there is no liquidity and no centralized exchange for Pokémon cards. Depending on what items you’re talking about they could end on eBay, a larger auction house, or through a private deal on social media. The latter, obviously, having the least accessibility and verifiability (if that’s a word). I know personally that I bought my Shadowless Charizard 9 for about 10% higher than the previous eBay sale (at the time) through a private deal. This wouldn’t show up unless I told you about it specifically. Essentially there’s too much grey area whereas stocks have a single market price at any point on a single exchange.
Between your friends though? Why not, gambling is fun. As a serious instrument I don’t see it at all.
I think it would actually be possible to do but first you need to create something that is similar to a stock market and then issue “shares” that represent some sort of asset. So maybe you would issue shares to raise capital to acquire a base 1st edition booster box. Maybe 10,000,000 shares would be issued to acquire the asset. After that the shares would be actively traded in some sort of exchange. You could then issue calls and puts based on that security as well as any other form of derivative.
This idea has been done with other forms of collectibles like art but I am not sure if it was a success of failure in the end.
Edit: Also, now that I think of it, this idea might also be possible to do using cryptocurrencies and smart contracts. I do remember in the early days of bitcoin, there was actually bitcoin mining companies that were “publicly traded” and even paid dividends to shareholders in bitcoin. Same technology could be used. The whole thing eventually imploded when the SEC started knocking on doors.
Some would say that is the joy of an unregulated market Some will try to manipulate the market but others can enter the market and call that person’s bluff and take them to the cleaners.
Gary could write a customized call option to sell psa 10 1st edition blastoise to me, anytime over the next six months for $15k, and charge me $500.
Whether blastoise is sold for 10k or 5k or 20k doesn’t matter on ebay, the only thing that matters is within that six months, is there any point i feel like paying $15k to get the blastoise.
Whether the option is priced properly is based on the skill of both sides (:
I think it could be a fun idea for really big collectors to get some side income, especially if call price or option fee is high
This is also true. No matter how much buyouts are memed, the potential is astronomically higher than shares of companies that have millions and millions of shares in the pockets of retail and institutional investors alike. I don’t know exactly what the numbers could potentially look like, but if there was enough incentive it would be pretty easy to manipulate a card that only sells once a month to a favorable price. Again, the pricing of these contracts would likely be inconsequential in comparison to the amount you’d have to actually put up to do this, but it is much more feasible with these once-a-month-sale cards than it could be for stocks.
Really? I never knew about that. I guess it kinda makes sense but my only exposure to options has been basically just equities (through both r/wallstreetbets and what I study in school). Seems interesting, I thought this thread was purely hypothetical. You’re right though, it definitely seems like it has to be person to person only for it to work at all. I personally wouldn’t do it but it would be fun to run on here. It doesn’t really seem much different than just betting on the sale price of an auction. If you really want the option to buy something for a price that is too high now but (in your view) under market in the future, why not just buy it now? That example may not illustrate what I mean too well, but the emotional side of collecting can kinda cloud this in my opinion whereas nobody emotionally loves collecting shares of Waste Management (at least that I’m aware of).
If a contract is written and both parties agree/sign. How legally binding would it be? Especially when dealing with other state/country and continent.
What’s to stop the seller backing out of the deal if the item increases too high in value within the short time period agreed. If there is a fee charged the seller could refund and no fowl done.
I see this having potential although also as a complicating a private deal between friends.
Hypothetically an interesting idea I think. I don´t know though if people would just buy some cards instead, you can gamble in so many different ways already that I don´t see this becoming a big thing. You will have to have a proper agreement, some sort of fine if participants violate rules. I think it´s a LOT of hassle to get something like this properly working, I personally wouldn´t be interested.
USA courts and judges typically enforce contracts to the full extent they were written as long as they follow certain guidelines. As long as the contract is fair and reasonable then it will be enforced. If a breach of contract occurs one of the parties in the contract can sue in court for damages.
Some will try to manipulate the market but others can enter the market and call that person’s bluff and take them to the cleaners.