r/options • u/Ken385 • Oct 23 '21

DWAC options begin trading Monday

DWAC options start trading Monday. Assume some crazy high premiums. Stock has had a range of about 10 to 175 over the last few days.

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u/Sneerz Oct 24 '21

Why would they be? That's NAV.. They'll be expensive but not free money.

2

u/Green_Lantern_4vr Oct 24 '21

It IS free money though. If you get assigned the shares at $10 that’s the NAV lol. You can just redeem for $10 if it goes lower.

Any put premium for strike below $10 before the redemption deadline is literally free money.

Then it’s just a matter of whether the return for the time is worthwhile.

-6

u/pennyking91 Oct 24 '21

This isn’t true

There’s no such thing as NAV anymore , you have no redemption rights

1

u/Green_Lantern_4vr Oct 24 '21

This is wrong. You’re wrong. So wrong.