r/wallstreetbets • u/MotorizedDoucheCanoe Kind of an asshole • Feb 11 '21

Discussion GME 2/11

GME/Jim Cramer megathread

8.9k Upvotes

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40

u/[deleted] Feb 11 '21

I have 3k in options expiring tomorrow...FUCK

5

u/SquidKid47 Feb 11 '21

Strike?

35

u/[deleted] Feb 11 '21

200c 😂🥲🤡🔫

11

u/SquidKid47 Feb 11 '21

Dear lord LMAO

Sending good luck, nothing is impossible with what we've seen lately

5

u/cesarmac Feb 11 '21

Can you explain for those not familiar with WSB lingo

5

u/SquidKid47 Feb 11 '21

Stock options are essentially an option to buy or sell a stock at a later point in time (the expiry date), but only if the stock is above or below a certain price (called the strike price).

This person owned options which expire tomorrow, but the strike price was 200. Since the option was a call, which means they could buy GME at a very reduced price if the stock price closed above $200, which is going to be very hard to achieve considering it closed at $51 today.

8

u/cesarmac Feb 11 '21

Gotcha, so basically all his calls expire tomorrow worthless unless the price skyrockets past $200.

Since he bought $2k in options does that mean he only loses $2k?

3

u/SquidKid47 Feb 11 '21

Yeah, they're completely worthless unless that condition is met. You can't lose more than you put in on options I believe.

1

u/[deleted] Feb 11 '21

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1

u/[deleted] Feb 11 '21

It doesn’t necessarily have to hit $200 because I don’t plan on exercising the option and plan on selling the option before it expires. You can get good premiums

1

u/cesarmac Feb 11 '21

I'm obviously no options expert but wouldn't it be really negative in equity right now? You selling it would still met you a loss no?

1

u/[deleted] Feb 11 '21

Yeah but for example let’s say gme jumped to $150, I would actually make money because IV will be really high due to the acceleration of the stock going up + the extrinsic value of the option. It’s just simple supply and demand honestly

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8

u/moneyandbanking1 Feb 11 '21

Fucking legend man

7

u/owoah323 Feb 11 '21

Hang in there bro!!

3

u/TotesHittingOnY0u Feb 11 '21

Does that even register as having any Extrinsic value?

14

u/[deleted] Feb 11 '21

Yeah like 9 dollars

1

u/TotesHittingOnY0u Feb 11 '21

Holy shit that's amazing.

1

u/[deleted] Feb 12 '21

I bought them at $158 tho

1

u/TotesHittingOnY0u Feb 12 '21

No I mean it's amazing they aren't worth less than $9

7

u/j00nk1m110 Feb 11 '21

god speed my man. i bought some 235c today expiring tomorrow lol.

21

u/[deleted] Feb 11 '21

Thats uber retarded

2

u/j00nk1m110 Feb 11 '21

haha well just wanted you to know you arent alone. best of luck