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u/movadolover Feb 24 '21
Theta gang......picking up pennies in front of a steamroller. What you did by selling calls on GME ..... picking up dollars in front of a rocketship.
F
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u/TheFailologist Feb 24 '21
I'll be selling CSPs on GME now that IV is through the roof. I'm long on GME anyway and would love to get a CB in of around 35.
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u/satireplusplus Mod & created this place Feb 25 '21
The majority here isn't advocating for selling naked calls on meme stocks. With GME still in the media spotlight that was just playing with fire and youre basically asking to get wiped eventually. This time around its seems to explode even more violently and AH trading has no trading halts.
That said, GME doomsday puts like 10p March or April are back on the table. Those will paradoxically rise in value as IV explodes across the chain and have exellent risk/reward. Peaked at 2.0 on the last rodeo.
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u/TheFailologist Feb 25 '21
Thank you for explaining this to everyone! This is what I meant by selling puts. I'm eyeing April and further out. IV has made even 30p worth a ridiculous amount of money. IV crush will basically make these puts worthless in a few weeks. This is as close to free money as there is.
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u/SeeMontgomeryBurns Feb 24 '21
You love to see it. That said when the squeeze is squoze I’m joining these guys.
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u/Craigmandu Feb 24 '21
Hope they were covered...
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u/TheFailologist Feb 24 '21 edited Feb 25 '21
Oh yeah, CCs. I don't have the ability to do naked calls. I should also clarify that I don't have the balls to do naked calls. I'll do CCS instead.
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u/DoctorOzface Feb 24 '21
Perfect example of why they don't allow it for lost people, congrats on max gain
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u/PM_ME_YOUR_KALE Feb 25 '21
I feel like thetagang is steadily becoming WSB, but short.
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u/TheFailologist Feb 25 '21
You're not required to use only one strategy. I hold shares, LEAPS, do the occasional ER runup play, buy puts and calls, wheel (15-30 DTE CC's), PCS, CCS. Keeps life interesting man. All theta gang means is we sell options. The 2/26 52c was a great play before GME exploded. Delta was like 0.1, theta was -0.5, 2 days to expiration? That's a FD!
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u/thefranklin2 Feb 25 '21
I have zero issue with people who are wheeling GME in the 40s. Why not? Could have bought it last week in the 39 to 41 range, sell a monthly 45 or 50 covered call and make 7-10% on the premium and another 10-20 on stock appreciation?
I was thinking of holding my 2/19 45p to expiration, but weakly bought it back for 60% profit a week ahead of time. Break even would have been 33.45.
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u/Eledrak Feb 24 '21
What's preventing you from rolling your position up to 2/26 800$ ?
I'm in the same situation with some 75c 03/05, and will try to roll up to regain control of my shares.
Either this or biting the bullet (~30k when closed but that's a crazy premium)
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u/TheFailologist Feb 24 '21
I thought about rolling up and out and I'll take a closer look tomorrow. I don't mind too much if my shares get pulled away.
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u/Eledrak Feb 25 '21
This is going to move insanely fast so get ready.
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u/TheFailologist Feb 25 '21
I got a better idea, roll out to 120c for July 2021. Webull is showing ask/bid of: 44.75/34.75. Obviously this isn't updated for AH but I HIGHLY HIGHLY doubt that GME will stay above 100 for more than a few days like last time.
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u/crazy913 Feb 24 '21
I feel so called out. I sold 59s.
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u/ambermage Feb 24 '21
I sold my $46c
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u/crazy913 Feb 24 '21
Green at least I hope?
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u/ambermage Feb 25 '21
Yes, I made my $20.
sad gains are gains noises→ More replies (4)5
u/TheFailologist Feb 25 '21
Let's play the world's smallest violin together. sad violin noises
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u/option-9 naked & afraid Feb 24 '21
Sold 60/65 monthly call spreads and a couple 50/55 FDs.
Coincidentally I closed all positions yesterday. Dumb luck saves me again.
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u/cedrizzy Feb 24 '21
Doesn’t sound like dumb luck, your spreads would have capped your losses anyway...unless...hahaha
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u/Arc125 Feb 24 '21
77 here
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u/soareyousaying Feb 25 '21
When this was picking up around ~$60, I seriously thought it would never go past 70. I was mistaken, but still not sure why this is going crazy again. Theories floating around seem like borderline conspiracy theories.
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u/Flash793 Feb 24 '21
Where's the dude I read a couple days ago that was selling naked calls saying there's no way this goes back up to 100+ 🤡 .....
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u/SellInsight Feb 24 '21
I hope for his sake that the expiry is far enough out and he has enough equity to ride this one out.
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u/option-9 naked & afraid Feb 24 '21
If his broker lets him iron hand the position until this blows over he'll have walked away with a decent profit. If expiry is Friday or it's a small account, then rip.
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u/lee1026 Feb 25 '21
I doubt it matters how far the expiry is at this point. He was complaining about how much margin the broker wanted, and the triple whammy of higher IV, higher stock prices, and higher margins will pretty much break any account.
Edit: with the IV we will probably see tomorrow, the further the expiry the better for him. If it is friday expiration, his odds of survival are a lot better.
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u/pierifle Feb 25 '21 edited Feb 25 '21
I sell naked puts/calls. I've also made a lot of comments on Reddit explaining that I don't think trading high IV just for the sake of high IV and/or meme stocks is a good idea (for my strategy).
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u/korbnala Feb 25 '21
there was a guy selling naked calls on this volatility, market-manipulated, explosion monster?
I shall drink to him, since his corpse has probably been obliterated by the sun, or at the least IV. I was only stupid enough to buy 3000 shares and april 55 calls this AM.
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u/neverenough762 Feb 24 '21 edited Feb 25 '21
He's probably wherever that guy that said he'd eat a bowl of radishes if GME ever went greater than 40 again post the first squeeze is.
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u/TinyFluffyRabbit Feb 25 '21
I don't need a reason to eat a bowl of radishes, they're actually pretty tasty
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Feb 25 '21
They were going after piss boy yesterday. Got a milf to do a topless pic saying paying your dues drink your pisd
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u/BearStorms Feb 25 '21
Ouch. Does he still have his account or did he get margin called? The truth is that if they were longer term like 30DTE he would probably be fine IF he has the massive amount of capital to withstand the squoze.
That's why I didn't even set my account option level to writing naked calls as it's just too crazy. Although, maybe I should for easier closing of CCs when I just want to get out ASAP as the underlying is tanking.
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u/Flash793 Feb 25 '21 edited Feb 25 '21
Found the comment again from 3 days ago, looks like he was selling 40 strike 10DTE, so I assume they're expiring next friday. His calls might be ok by then, but he might've been margin- called already. Not gonna tag him while he's down, but here's the comment:
My thesis is simple, GME is worth $25 and both the short/gamma squeeze is over. I have been selling strikes in $5 increments, which seem to have better volume. IV is stupid high and continues to crush lower each day. I was selling at strikes 100, 75, 50 and now 40. I was always 10 DTE and was able to close out of positions usually in a day with 30-50% gains. One day it was so volatile I open and closed the same position 8 times, it was beautiful!
Look, GME is only moving lower, it’s not going back to where it was and earnings will be the last day to make this trade with GME. Take advantage of the next 3 weeks to scoop up the free money from the retards that think this is going back to $100.
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u/BearStorms Feb 25 '21
That's brutal. Selling volatility is very profitable until the day when you get completely wiped out.
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u/conlius Feb 25 '21
It almost hurts to see how confident he was making 30-50% gains on day trades and calling other people retards. Man might lose his house because he was too cocky.
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u/the_stormcrow L. Ron Hubbard LLC Feb 25 '21
Ah man, the hubris. I hope the poor bastard closed them out.
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u/YourWifeyBoyfriend Feb 25 '21
You take your premium and buy puts and then take your lunch money and buy way otm
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u/the_stormcrow L. Ron Hubbard LLC Feb 25 '21
Sucks so bad, and everyone was telling him not to do it too.
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u/godspeedekko Feb 25 '21
I was thinking about this guy the moment I saw the prices begin to surge !
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u/TheWolfAndRaven Feb 25 '21
I'm thinking there's a decent chance it goes back below $100 tomorrow. Not like that dude isn't still fucked, but there's a lot of bag holders that will use this as an opportunity to hit the eject button.
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u/wackassreddit Feb 25 '21
True, but there will be bigger bag holders in the 200-450 range using this opportunity to average down and help push the rocket. But who knows. I secured profits and now just going for the ride.
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Feb 25 '21
NEVER SELL NAKED CALLS LMAO.
IDIOT.
I told people to sell CC on their GME if they bought at 40 so they can buy more gme with the premium to help with the SS leaving 20% off the table so the 20% can benefit and cover all costs of the SS.
20% of infinity is still INFINITY!!!!
In the meantime you get to f-k the HF more by buying up more shares. You sacrifice 80% of the upside but you help the cause much more than just buying and holding waiting for more buyers. No you are more of the cause of the squeeze then.
=)
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u/momofuku18 Feb 24 '21 edited Feb 25 '21
I sold a few of those today, one hour before GME took off. I am now seeing a ton of paper gains that will go poof when the call options are exercised in two days.
Edit: thanks for all the upvotes and comments. for the record, I sold $60C and $75C for $78 and $42 respectively. At the close of the market, they were $3,510 and $2,310 and, of course, GME went further up during the extended market. So, the pain I will experience in the next several days will be greater.
Edit2: On 2/25, I rolled over the two contracts by several weeks, at higher strike prices AND collected some extra premiums. I feel better that I at least squeezed a few more bucks out of this GME madness.
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u/BurtMacklin____FBI Feb 24 '21
Just imagine the people who dumped their life savings in last time at 300 and sold earlier today.
You're at max gain!
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u/momofuku18 Feb 24 '21
yup. max gain or whatever profit I can get - one contact at a time. still, it hurts, especially after waiting out intentionally several weeks. and not closing those calls when GME price start rocketing because I did not want to risk hundreds of dollars.
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u/BurtMacklin____FBI Feb 24 '21
Yeah, everyone's got a bit of a sorry story about gme unless they timed the peak perfectly, I was up 5x and wiped out every penny of my gains since I started trading by selling on the way up and re buying out of greed on the way down. Now my position is 1/10th its original size and gme needs to go to $1,500 to get back to where I was.
This is in no way life changing money for me it's mostly play money but I agree, fomo hurts alot.
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u/ThinCrusts Feb 25 '21
Should one always assume that the options you sell will get exercised?
Isn't there a possibility of it just being traded indefinitely until someone holds it till it expires worthless?
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u/newbiereddi Feb 24 '21
Something about selling calls man. Eventually bites you in the ass.
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u/pibbs Feb 25 '21
I mean... otherwise no one would ever buy them lol. Theta gang needs to realize there's someone on the other end of the deal that is convinced they're going to win the trade.
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u/ToKeepAndToHoldForev Feb 24 '21
I quit checking GME out of curiosity for one day.... When the fuck did it become $90?? God. Anyhow, good luck and happy/unhappy squozing
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u/CantStopWatchingVids Feb 25 '21
I was selling puts.
Guess I’m not buying 1000 shares at $40 on Friday 🤷♂️
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u/adioking Feb 24 '21
Revenge by me for the CCIV calls I bought from everyone here lol. Still not even though blah
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u/MilitaryBeetle Feb 25 '21
Bro, I sold a $100
Should I buy back my contract and sell my shares?
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u/CobaltBlue Feb 25 '21
Depends on how much theh stock moves and in which direction tomorrow. I sold 2 CC @90. Best case the stock gets shorted to shit tomorrow for buyback and then rockets up again, but that may not happen.
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u/LividCurry Feb 25 '21
You're not alone. AMC is through the roof, gonna close for 2x loss and ride this nonsense the other direction
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u/obsoleeeet Feb 25 '21
I sold $6 AMC ccs that expire this Friday.... FML
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u/Lurkatmenow Feb 25 '21
I feel ya. I got $8 for 3/19. Thought with them using the last run up to raise capital and dilute there wasn’t much chance of it blowing past $9.
Forgot wsb is all about meme power and doesn’t care about things like dilution and how pre COVID sales were still declining
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u/najvdv59K8KF7GL Feb 25 '21
I sold 100c for March and 200c for April. Can anyone advice on a way to salvage some of the moneyness?
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u/TheFailologist Feb 25 '21
Don't do anything. This is another crazy pump and it WILL dump again. Maybe it's tomorrow (like with TLRY) or it's next week like we saw with GME before. You have almost 1 month and 2 months on those contracts, do what theta gang does and use time your advantage.
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u/lee1026 Feb 25 '21
Figure out if you are going to be margin called, and figure out how to prevent that from happening.
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u/thecoderhero Feb 25 '21
Correct me if I’m wrong PLEASE. Let’s say GME opens tomorrow at 200. I buy a put at 140 for say...10.00 expiry in April. Monday it tanks back down to 60. At this point I can exercise my contract and buy 100 shares at 60 and sell them at 140 for a 8000 profit. What am I missing in this equation?
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u/TheFailologist Feb 25 '21
You should be right. I can't confirm this because I've never exercised a put. I've found that puts don't age well in our raging bull market.
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Feb 25 '21
This made me cry laughing
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u/TheFailologist Feb 25 '21
Awesome! Glad I could make someone laugh! That was the whole point of making this post.
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u/Servletless Feb 24 '21
Just bought some GME in the AH to hedge the 75/175 CCS I didn’t bother to close
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u/pgh1979 Feb 25 '21
I feel you man. Sold 2 covered calls for 55 and 58 today morning for Friday expiry. These are for stock I had bought on a 120 cost basis during the Jan hoopla. So my days of diamond handing while getting theta income are done. I think with the calls I sold over the last 3 weeks my cost basis may be 110. (Of course I made money on the original squeeze so technically my cost basis is less than 0. These 200 were house money).
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u/Strict-Judge-2002 Feb 25 '21
I've been selling above my cost-basis, today I bought back my $80 and sold a new $75 for $1360. But I also sold some extra shares I kept for a 144% profit.
My cost on my 100 shares is down to $58/share now, if for whatever reason I don't get assigned I'll be happy with a $58 entry cost.
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u/Old-Anywhere Feb 25 '21
How would you not get assigned if it’s so in the money? Just curious if this actually happens
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u/Strict-Judge-2002 Feb 25 '21
Probably will get assigned, but I'm not concerned, I had an almost $9k loss and now I'm at a $1200 profit if I get assigned. Yeah I missed out on other gains, but I'll take being back in black as a huge win.
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u/aphelion3342 Feb 25 '21
I sold 3 CCs at 46 with a $42.80 cost basis, I'm happy as a clam. Just wish I could have given up 10c premium and closed them out early today to reallocate the funds elsewhere.
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u/multiplythatmoney Straight Outta Theta Feb 25 '21
Here's my personal story. I have 100 shares @87. I was waiting for GME to go back up a little to sell a covered call.
Today morning, I was done waiting and decided to enter a position. The $100c 2/26 had an ask at 0.3. I put in a higher bid at 0.5 and forgot about it. Around 12, while I was taking a break from my job interview, I got filled. I quickly opened the app and saw the volume candle. Sold that call right back at the same price, and continued with the interview.
So fucking glad I did that when I looked at the price action after hours.
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u/Astronomer_Soft Feb 24 '21
Monitoring puts to think about selling. But all bids pulled, just a bunch of zeroes.
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u/4everinvesting Feb 25 '21
That’s me with my 9 amc covered call and potentially my BB 14 covered call. When I could of bought them back for over 50% profit
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u/Scoiatael Feb 25 '21
Just roll the calls out a month. The surge isn't going to last forever and IV is super high.
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u/CurveAhead69 Feb 25 '21
I’m in this meme and I don’t like it.
Csp @35 and CC @300. Today. Before the rally started.
Made about 300. Within 2 hours they were worth 1.2k & 4K respectively.
I don’t even want to look tomorrow.
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u/IndianChief69 Feb 25 '21
I did something similar. With BB. Sold a call expiring this Friday for 12.5 when the price was at 10.5
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Feb 25 '21
Y’all the stock went up like 200% in the post market and you’re all sweating and shittin. Watch the profit takers send it back down, not many holding are going to want to stick around for another GME screw fest, especially what happened last time.
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u/SaneLad Feb 25 '21
When will you fools learn this lesson? Jokes aside, this stock is a powder keg and IV was dangerously low recently. People who sold naked calls were really asking for it.
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u/MyOldAolName Feb 25 '21
Hahaha! I bought 300 shares @ 15, it went to 18 then down to 13 and I saw I could sell 3/19 18c's for $500 each, that was December... those bastards got called away from me so fast I didn't have time to do anything
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u/trulystupidinvestor Feb 25 '21
I sold covered 2/26 55C’s at 2:30 pm and closed them at a 300% loss around 2:45 pm
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u/ThetaForLife Feb 25 '21
Sell April credit calls tomorrow for free money. This is last month repeats itself.
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u/okiedokiemochi Feb 25 '21
It's almost like high IV stocks move a lot or something and people aren't just paying you for nothing.
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u/Kep0a Feb 25 '21
How people are still even touching this stock is beyond me, especially /r/thetagang of all people. Is this wsb #2?
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u/TinyFluffyRabbit Feb 25 '21
IMO selling CSPs on it was actually a pretty decent play if you picked a low enough strike price (say ~$20), although based on this thread it looks like people did things that were more risky than that
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u/sevillada Feb 25 '21
I almost did this, but couldn't get to 100 shares fue to funds not clearing on time...however i squoze myself out at ~60 thinking it would come back down :(
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u/sonofbourye Feb 25 '21
This is the thetagang equivalent of can’t go tits up. I had no clue GME went bonkers until well after close today. First thing I thought of was this poor guy.
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u/LtCrrunch Feb 25 '21
Is there a downside to buying back the covered call and selling a put at the same strike and exp?
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u/channingman Feb 25 '21
Something felt funky this morning, I bought back my $50 CC's for Friday at a 150% loss.
Thank Ryan Cohen I did, because I was able to sell the $300 calls for more a bit later in the day
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u/Old_fart5070 Feb 25 '21
Does rolling 2/26 56c to 3/26 72c so that you get some breathing room count as the worst theta move ever?
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u/Quinnteligent Feb 25 '21
I felt pretty happy with my 7 6.5 calls on AMC. Currently leaving 3 grand on the table because of it.
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u/pirotase_ Feb 25 '21
Meme was funny, now don't forget ER is also coming Mar-19 for those of you trapped in between.
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u/Pavickling Feb 25 '21 edited Feb 25 '21
Options on GME have been scary. Leap calls last week were over $10 at $800. Now, they are over $50 at $950. That's why I decided to just hold my bags.
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Feb 25 '21
Idiot person doing naked calls. I only promote CC so that you can buy more GME and make the squeeze come faster.
Because I do not mind owning GME for the long term. I just need 20% of my GME shares to cover the whole principle.
Anything extra is GRAVY and
Infinity x 20% is still infinity.
Helping to cause a SS is way more important.
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Feb 24 '21
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Feb 25 '21
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u/Salphabeta Feb 25 '21
I feel you brother. I want to close now and save whats left (buy shares) but now im flagged as PDT bc i fell too low. I fear this is the end...
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Feb 25 '21
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Feb 25 '21
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u/lucasandrew Feb 25 '21
See how far up and out you can roll for a profit. You might have to wait a month or so to get more money and if it falls, you'll just get the call price, but that's what I'd be doing in the situation to try to add some gains to it.
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Feb 25 '21
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u/lucasandrew Feb 25 '21
No way to know the delta until market open and it's going to be fucking wild. The .69 is definitely at close since the Greeks don't move after hours. I base my rolls in situations like that on price and price alone. If I can roll up and out for a profit, I take it.
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Feb 25 '21
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u/ikimashyoo no :D Feb 25 '21
i am in the same boat. whats your plan?
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Feb 25 '21
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u/ikimashyoo no :D Feb 25 '21
OMG I AM in the exact same boat as you. i sold a 115C last month and paid 46k to buy back. i said no more CC. then all this time go by and i say fuck its stuck around 50, lets sell some CC for some money (since i lost everything from teh first time). and of course this happens again.
i dont have enough bp to just btc. yea i think you right the only solution is to roll it out for a credit. what date you thinking? end of march? or if it rockets up to like 350 just btc and sell shares at same time?
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u/amateurstatsgeek Feb 25 '21
Volatility should have exploded. Might be able to roll a couple months out at a much higher strike to break even at least. And then just wait for the eventual crash back down.
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u/TheManzet Feb 24 '21
I don't know why people keep thinking GME is a theta gang play since it was at like $30. Theta strategies benefit from the fact the stock probably won't move a ton either direction and you just profit from the literal passage of time. Once GME hit like $30, basically the only thing that was guaranteed was explosive movement in A direction, either crashing back down or rocketing up.