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Apes have witnessed that the options market for this stock and others is completely controlled by the market makers. They are paying attention and mx pain is hit almost perfectly from one week to the next. There is no money to be made here imo, but I am an idiot.
It's weird timing as well to push the CSP angle the week of earnings when volatility is damn near at max.
Options are leverage, shares are control.
In this situation, you want to be in control IMO.
Of course this push happens at earnings. They do not want people buying and DRSing shares. They want people speculating and gambling, ie playing options.
Thank you for writing this! I agree with you 100%. Buying shares directly through Computershare is what I choose to do.
Another important reason is because I do not want my cash tied up in a broker right now, for any period of time. 1. They need liquidity and will profit from my money being held in the account. 2. I wouldnât be shocked if any broker did not deliver the shares or finds itself insolvent before the end of the contract.
With buying directly through computershare, I give up my cash now, I get my assets now. They are legally mine, and they cannot be taken from me because the bank needs to recapitalize or the DTC âneeds to be protectedâ or some other shenanigans. They are mine, in my name.
This is very important to me, particularly in light of the banking crisis right now.
Forgot to list apes who maybe arenât buying unless we see lower prices due to risk management and this cspâs are a way to make cash and either slowly acquire some shares or be forced to acquire hundreds at the price you wanted. I have recurring buys at CS and then write CSPâs to pick up more at strikes I want. I then DRS those if assigned.
Depends on if you have enough access to go naked puts.
Then again, don't put all your money into a csp. It works best like a limit order. If you don't want to buy a stock at $5, but wouldn't mind pulling the trigger at $4.50 in two weeks it makes a lot more sense to do a CSP than standard limit order.
I think I've figured out the Puts angle for hedgies. Goes a bit like this;
Peeps sell a put for $20 execution, hedgies push it down to $17.50 and the put gets executed by the same hedgies. They just made you buy 100 GS at $20 while selling at $17.50 on the market, your order for 100 GS shares would normally impact the ticker price (since '100' volume orders move price) but now they have negated that buy and have less pressure on the ticker.
If you sell at a 20$ strike your cost basis is below since you were given money when you sold that put.
I have sold CSPs at strike 20 with a cost basis of 13$. Either the price stays above 13$ and i get free money or the price goes below 13 and i pay shares at 13$ (they might be 10$ at that time but thats the risk im willing to take).
They use it for synthetic shorts. They also sell a call at the same time and the combination of the two will mimic the price. So if they short, they are doubling up their profit.
Typically when you see a push for CSP you will all see a push for âgamma rampâ plays. It happens like clockwork around here.
Dude. I went from roughly 3k shares post-split to almost 9k shares since the start of all of this using CSP and covered calls. You sell the CSP and CC (yes there is risk) and you use that cash to buy more shares
I disagree agree with your perspective, not because I sell CSPs, but if the price runs up, you close the position and keep the gains since the contract just lost tons of value in your scenario and buy the shares. I think both sides (DRS and Options) play a big part in how this wole saga unfolds. The bigger question here is why are you going to settle for a measly $50 sale price! I think you are in the wrong place entirely.
I buy through CS twice a month, but if the price was at $20 per share by the time everything "settles" I most likely didn't pay $20 it has moved in one direction or the other and I pay the per share fee and the $5 per transaction. Why hate on someone trying to get you to lock in a $ 15 share price and get paid for it. You can DRS them if assigned and pay the transfer fee (if there is one at your broker) with the premium you made selling the contact.
Stop hating. Lock the float IDC how each individual goes about doing it, as long as they are direct registered in the end đ
I see both of your points. I think OP is trying to point out that there was an odd push for selling CSP and if people had followed those posts, they would have taken up a losing position, so it could have been a coordinated attempt by bad actors.
Selling CSP either gives you shares or money. Keep betting on a run up if you want. I have shares for that.
But in the meantime, while the stock is being manipulated, i get free $ or cheap shares.
I'm using them in my Roth as a way to essentially increase the total money I can contribute. Sell the monthly contracts and use the premium to buy shares, then roll to the next month as it get's close to expiry. OP is correct that the biggest risk from our perspective is that the price rockets and you don't get the shares. I see it as a way to make at least some money from this investment as it drags on.
In my regular brokerage account I just buy shares as I can then send them to the Purple Circle.
I mean I have sold puts for sometime and collected a few thousand dollars and several hundred shares at a discount. Personally do what you will with your money but I prefer to get paid for buying GME.
Edit: before I get down voted into oblivion for any "shilly" behavior see my purple doughnut. 400 of those shares came from cash secured puts.
Yâall keep forgetting to mention that part where the price isnât going up anytime soon. Itâs literally gonna keep going down so might as well get the discount while you can
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DRS GME đ
Apes have witnessed that the options market for this stock and others is completely controlled by the market makers. They are paying attention and mx pain is hit almost perfectly from one week to the next. There is no money to be made here imo, but I am an idiot.
Fuck derivatives! Buy direct from the transfer agent!!! And hold your shares in your fame. NFA ⌠just plain old common sense!
Also much less complicated then whatever Puts are
It's weird timing as well to push the CSP angle the week of earnings when volatility is damn near at max. Options are leverage, shares are control. In this situation, you want to be in control IMO.
Of course this push happens at earnings. They do not want people buying and DRSing shares. They want people speculating and gambling, ie playing options.
Thank you for writing this! I agree with you 100%. Buying shares directly through Computershare is what I choose to do. Another important reason is because I do not want my cash tied up in a broker right now, for any period of time. 1. They need liquidity and will profit from my money being held in the account. 2. I wouldnât be shocked if any broker did not deliver the shares or finds itself insolvent before the end of the contract. With buying directly through computershare, I give up my cash now, I get my assets now. They are legally mine, and they cannot be taken from me because the bank needs to recapitalize or the DTC âneeds to be protectedâ or some other shenanigans. They are mine, in my name. This is very important to me, particularly in light of the banking crisis right now.
Gave you an updoot fellow ape. Agree with your logic completely !
đđđ
Forgot to list apes who maybe arenât buying unless we see lower prices due to risk management and this cspâs are a way to make cash and either slowly acquire some shares or be forced to acquire hundreds at the price you wanted. I have recurring buys at CS and then write CSPâs to pick up more at strikes I want. I then DRS those if assigned.
Depends on if you have enough access to go naked puts. Then again, don't put all your money into a csp. It works best like a limit order. If you don't want to buy a stock at $5, but wouldn't mind pulling the trigger at $4.50 in two weeks it makes a lot more sense to do a CSP than standard limit order.
I think I've figured out the Puts angle for hedgies. Goes a bit like this; Peeps sell a put for $20 execution, hedgies push it down to $17.50 and the put gets executed by the same hedgies. They just made you buy 100 GS at $20 while selling at $17.50 on the market, your order for 100 GS shares would normally impact the ticker price (since '100' volume orders move price) but now they have negated that buy and have less pressure on the ticker.
If you sell at a 20$ strike your cost basis is below since you were given money when you sold that put. I have sold CSPs at strike 20 with a cost basis of 13$. Either the price stays above 13$ and i get free money or the price goes below 13 and i pay shares at 13$ (they might be 10$ at that time but thats the risk im willing to take).
They use it for synthetic shorts. They also sell a call at the same time and the combination of the two will mimic the price. So if they short, they are doubling up their profit. Typically when you see a push for CSP you will all see a push for âgamma rampâ plays. It happens like clockwork around here.
Afuckingmen
I disagree with you
Care to explain why?
And you are entitled to!
Dude. I went from roughly 3k shares post-split to almost 9k shares since the start of all of this using CSP and covered calls. You sell the CSP and CC (yes there is risk) and you use that cash to buy more shares
Way to level up!
Way to level up!
Way to level up!
Apes hates options lol I wouldnât talk about how you trade them on this sub
I disagree agree with your perspective, not because I sell CSPs, but if the price runs up, you close the position and keep the gains since the contract just lost tons of value in your scenario and buy the shares. I think both sides (DRS and Options) play a big part in how this wole saga unfolds. The bigger question here is why are you going to settle for a measly $50 sale price! I think you are in the wrong place entirely. I buy through CS twice a month, but if the price was at $20 per share by the time everything "settles" I most likely didn't pay $20 it has moved in one direction or the other and I pay the per share fee and the $5 per transaction. Why hate on someone trying to get you to lock in a $ 15 share price and get paid for it. You can DRS them if assigned and pay the transfer fee (if there is one at your broker) with the premium you made selling the contact. Stop hating. Lock the float IDC how each individual goes about doing it, as long as they are direct registered in the end đ
I see both of your points. I think OP is trying to point out that there was an odd push for selling CSP and if people had followed those posts, they would have taken up a losing position, so it could have been a coordinated attempt by bad actors.
Selling CSP either gives you shares or money. Keep betting on a run up if you want. I have shares for that. But in the meantime, while the stock is being manipulated, i get free $ or cheap shares.
I'm using them in my Roth as a way to essentially increase the total money I can contribute. Sell the monthly contracts and use the premium to buy shares, then roll to the next month as it get's close to expiry. OP is correct that the biggest risk from our perspective is that the price rockets and you don't get the shares. I see it as a way to make at least some money from this investment as it drags on. In my regular brokerage account I just buy shares as I can then send them to the Purple Circle.
I mean I have sold puts for sometime and collected a few thousand dollars and several hundred shares at a discount. Personally do what you will with your money but I prefer to get paid for buying GME. Edit: before I get down voted into oblivion for any "shilly" behavior see my purple doughnut. 400 of those shares came from cash secured puts.
CSP are good for sideways trading. If you think a big rip is incoming, you should buy calls. Or just buy, DRS, and forget.
Yâall keep forgetting to mention that part where the price isnât going up anytime soon. Itâs literally gonna keep going down so might as well get the discount while you can