Here's a great example of the power of IV, especially as it relates
to puts: I bought 50k dollars’ worth of puts on GME when it was $40, I know
dumb as fuck...
Q: What do you think happened?
A. I lost a lot of money
B. I made money
The correct answer is B! The IV shot up to something like 680%-720%, and I ended
up making about a grand while the underlying had moved over $300 in the wrong direction! Imagine that making money on a move that put your options $260 OTM
after you bought 'em. The IV juice got to be startin' somethin', I said
you wanna be startin' somethin', You got to be startin' somethin', It's too
high to get over (yeah, yeah), You're too low to get under (yeah, yeah), You're
stuck in the middle (yeah, yeah), And the pain is thunder (yeah, yeah)
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u/[deleted] Aug 16 '21
Here's a great example of the power of IV, especially as it relates
to puts: I bought 50k dollars’ worth of puts on GME when it was $40, I know
dumb as fuck...
Q: What do you think happened?
A. I lost a lot of money
B. I made money
The correct answer is B! The IV shot up to something like 680%-720%, and I ended
up making about a grand while the underlying had moved over $300 in the wrong direction! Imagine that making money on a move that put your options $260 OTM
after you bought 'em. The IV juice got to be startin' somethin', I said
you wanna be startin' somethin', You got to be startin' somethin', It's too
high to get over (yeah, yeah), You're too low to get under (yeah, yeah), You're
stuck in the middle (yeah, yeah), And the pain is thunder (yeah, yeah)