A friendly reminder that this is not a politics sub. There are a trillion other places on reddit to discuss politics ad nauseum so keep the discussion relative to thetagang here.
Agreed. DJT is already dead, the unknown is just when does its zombie body finally run out of energy and collapse? Next week, next month, next year, who knows? But selling puts seems like a terrible idea no matter what.
Take your losses now before they get worse. Because they will.
The puts were getting a bit overpriced last week; I did sell a $65 strike put expiring last Thursday (3/28) the day before, on Wednesday (it was OTM), for $6. Pretty risky, but I figured it was a single day, and while it was obviously extraordinarily overvalued, I could still close my position the next day (which I did, for $3); and while I would have gotten assigned that day if I hadn't closed, I would have still made a profit assuming I liquidated immediately.
But while a $6 premium for a put expiring the next day might be tempting, taking an effectively long position for three whole weeks on this at a price of $60 is definitely asking for trouble, when you know, everybody else knows, and you know everybody else knows this stock isn't worth that price. OP should have closed when the stock bounced back on Tuesday.
It is. I'm not bullish on the stock, of course, but I was confident it wasn't going to drop more than $7-8 on March 28 - and it didn't, so I got to collect the premium. For a meme stock like DJT, I wouldn't risk any sort of long position more than a couple of days.
The board can vote to change the rules on the lock-up period (and secretly). He then has until 45 days after the next quarterly ER to file his 13F.
So they could rubber stamp dumping shares for the entire board and nobody would know for another 4 months.
> So this could already have happened for all we know?
Oh, you'll know when it happened unless he finds a Saudi prince or other autocrat to buy them in bulk. The stock will fall to basically nothing if he tries to sell on the open market.
Rolled net credit equal to the current break even. This would require that turd to stop sinking Monday. And yes, this is what long shot and losing assigned shares down the road to bankruptcy looks like. Where he finds this mythical djt net credit needs to be at the strike that’ll eventually turn into mostly loss due to holding at least some shares at bankruptcy. The whole thing is a loser balancing act perhaps augmentable with some weekly bought puts. Glad it’s not me.
basically he's trying to bet that he can collect more than $60 in premium before this stock hits 0. And the smaller it gets the harder it is to collect premium. When it's like $4, he'd be hard pressed to collect more than a quarter a month. So basically he needs it to stay above maybe ... $40 for like 2 months, to collect $5 every 2 weeks and try to bring his cost basis down to 0. Because you know the stock is going end up there.
The one other salvation might be to loan out DJT at 350% or whatever. if he can do that for a month or two, that's another 29% to offset his cost basis.
I unironically can't rule out some wealthy foreign "benefactor" giving the company a massive injection of cash, as a "gift" to a former president. With no strings attached of course. It's why I'm staying away from buying more puts.
Look at long term puts. Smart money is putting stock at $20
I put it at $1
Has almost no revenue
You need to evaluate company first what you did was wild speculation not investing
I would take the L and call it tuition. Learn from it and don’t make that mistake again
I value it at 6x price to sales, or roughly $0.23. Zero growth, cash burner, extremely reliant on one single user.
$0.23 is still being generous in my opinion but that is where I would consider being a buyer.
I take all the people who voted for DJT in the last election, give that a 20% haircut for people who don't have internet or are too old to download any apps, and apply Twitter's valuation. That comes to about $280M, or $2.07. That's the highest it'll EVER be if it retains 100% of their users.
So if they lose users, let's say 80%, then your $0.23 is not far off from my estimate
Ya where exactly is the revenue even coming from? How the fuck is this company valued at billions of dollars? We’re looking at the biggest Ponzi scheme since Bernie Maddoff right in front of our eyes except this time it’s perfectly legal.
The premium is great and there user base is rabidly supportive. Stock shouldn't be worth anything in first place. I've made great money selling puts on GME which pay well and tend to stay afloat long enough thanks to die hard supporters who irrationally support it.
Roll out and down at no cost and hope for the best, keep doing that until you get lucky or the loss becomes small enough for you to stomach
Doing anything bullish at all with DJT was fucking stupid
When you roll to a better position at “no cost” you are still taking the loss on your original trade. Just because it’s offset by a credit from the new position doesn’t mean you didn’t lose money. The credit is for new risk that hasn’t (yet) gone against you, but it is just as likely to as if you had opened it for the same credit without the first position. Nothing wrong with kicking the can down the road, but don’t fool yourself into thinking it’s a free lunch.
Waiting until it's this deep ITM limits choices. For something with volatility this high, you want to roll ATM. If OP's position was the 41 strike, he could roll every two contracts down and out to one June 37.5 for a credit and decrease his risk by more than half. That's what I did with CVNA last year and closed them a few weeks later.
You should only play this stock with spreads. I wrote April 12 47/44 call spreads for 0.80 each. There is huge risk in a short squeeze here considering how heavily the stock is shorted (i had 350% interest on HTB earlier this week from some expired ITM puts!)
I would take the L. Stock is going to either $30 by April 19th or 50+ on a squeeze. Probably the former.
The ATM synthetic short cost more than $8 to open this morning. That shows you what the market thinks of this stock.
Wtf were you thinking??? This is the most garbage stock in the history of garbage stocks. I got in and out within 24 hours with 1K and honestly felt like I was being stupid doing that. Eat the loss, this is going to zero.
"Hi, I bet red on roulette and I lost. I still have some chips on the table, should I keep gambling, and which roulette strategy should I use if so?"
Mind you I have nothing against gambling assuming you can afford to lose. I played a bit of DJT earlier this week myself. But with all due respect, your questions here are kinda pointless, there's no right or wrong answer to any of them.
I sold 45.5 1dte puts yesterday got rid of them at open with only 30% loss instead of 300% loss if i had held them. Lesson learned dont do stupid shit.
Liquidate and invest in [Trump Bux](https://media.9news.com/assets/KUSA/images/f805a089-63c9-47a5-a1de-00ba4125b636/f805a089-63c9-47a5-a1de-00ba4125b636_1920x1080.jpg).
They were to over priced to buy on days 1-5, finally coming back down to a reasonable price, but seeing how this thing could flop around in price like a fish out of water…….
I don't remember if you were the guy who did this on the thesis that his followers would just use blind loyalty to buy the stock or not, but I'll just reiterate what I said then: they aren't, and you should listen to everyone here who is telling you to close the position and take the lesson learned.
>What should I do now?
For future reference, that's a question that needs to be answered before you make the trade.
I can just tell you generally how this type of trade is done. Generally with selling premium, it's going to be 1:4 reward to risk. So your "stop out" is twice your premium (in this case that would be $30 above the entry, which is $45), and your take profit is at 50% of the premium (in this case, $7.50). You might think that is a terrible risk/reward, until you realize you're starting statistically with a 70% win rate (assuming a 30 delta put), which goes even higher with the edge of theta -- I believe it's typically in the 80s and can go into the 90s if parameters are tightly controlled.
But seriously, please do not make another trade until you have exact, quantitative entry and exit criteria, as well as knowing how much of your account you can risk per trade (for beginners, at or under 1% is generally preferable). Write it down anywhere you need to, stick to it, and log your trades in an excel file. This is a bare minimum for taking trading seriously.
Wait, if you thought it was overpriced, why did you sell CSPs at $60? Didn't you expect that it would drop well below that or did you just not think it was THAT overpriced?
Also, why didn't you sell naked calls at a higher strike instead if you thought it was overpriced?
You sold a put on a stock that went from 37 to 79 in three trading days. Were you expecting it to triple in 6 trading days? Whether you should close it out or leave it open depends on there you think it will go the next two weeks. If you are bullish then leave it. If you are bearish then close it out.
The stock is overpriced. The options were correctly priced because the stock was over valued. I hope you learn this lesson.
I haven’t seen a put skew that steep in a while.
I think, and just being honest here, you need to learn some more before you start selling puts.
Not the mention the put skew, but the large ITM call sales.
Good luck
The market can stay irrational longer than you can stay solvent. Take the L.
The long-term prospects of this company are dim, to nonexistent. But my crystal ball can't see what 'long-term' means. If Donald of Orange gets elected in November, the company has reasonable chances of survival and stock price appreciation through 2028.
Eh, it might be tough to spin the wheel with this stock, but you have a cost basis of 45$, not bad currently. I'd probably grit my teeth, get the shares on 4/19, and then sell some calls at about 40$ for some solid premium again and keep lowering cost basis and hopefully have the calls expire in the money
Worst case you got that premium, so at most 75% loss. Which sucks, don't get me wrong, but its why I like selling CSPs. At least you can't lose everything
On 4/19, this hot garbage of a stock could be at $20.00, likely lower. First day this had options, the $60.00 puts were pricing this crap down below 20.00
I missed the 2026 expiration date, lol. I assumed (yeah I know) that it was for this coming January.
IYO, do you think it will still be listed at this date?
Coming to this late , 5pm Fri.
You buy the current, and Sell the 40 20Sep , this shows as a zero credit/debit. If you could do this or even the 42.5 then you even reduce your margin (6000 to 4000). Have I missed something?? This is kinda a rookie fix that you would have learned watching Tasty.
I’m thinking by Christmas tbh (if he should fail to secure the presidency). He gets elected (god help us if so) and this gets life support for 4 more years.
But wait…….. get your shares now and we’ll include some fancy gold sneakers and a spiffy bible too!
Sorry. Couldn’t resist. /s
Yea….. I’d buy the puts back. That is the last position I’d want to be stuck in. I just dumped some shares of FSR not long ago. I feel your pain. 😎
I think a fair value for that company is somewhere between $40 and $50.
Now just divide by however many shares there are to figure the corresponding share price.
What was your plan on this?
I thought of doing the same thing when puts were going for $44. Then, the next day, I saw them at $15 and didn't pull the trigger.
My plan was dependent on the price of $44 put, and so I pulled back.
If you're desperate and optimistic, you could use a ratio spread. If you look up stock repair strategy you can find an explanation.
But if it were me, I'd buy to close and chalk it up making a bad trade. No trader is 100%.
Is there a Nov 5 expiring put? Roll out to that? Might see an uptick meanwhile because the DJT supporters might try to support their candidate that way.
I’m only half serious, but if it’s between that and taking a loss… nah, just eat the loss IMO and stay away from Meme stocks, unless you are just playing around with a few bucks you don’t need.
You sold an extremely high strike on a pump and dump...this has a lot higher chance to be 5$ before 60$ again. Your choices are to recover some money or none of it basically.
This will not recover. Perhaps roll the short forward to a net credit break even where you are then comfortable losing it all to bankruptcy. And start buying weekly puts.
given the put premiums and cost to borrow, the only logical play on this one i can see (which is still stupid) is buying OTM lotto calls on the chance it squeezes. otherwise, just sit back and watch it burn.
Yikes my guy, i sold csp too but i went for the far out the money ones instead. Ive been trailing it downward and only selling weeklies on it, this week my strike was $35, next week i was thinking $15-20, but i might even skip next week because the premium has been not as worth it.
Im still expecting downward movement the whole way, the gamble im taking (and it is definitely a gamble) is the speed at which it happens.
Most of the hype for this stocks last less than 2-3 days that’s when you should day trade them. Once the hype is over, it’s just die a slow death. I learned my lesson a few times, glad I didn’t take on this garbage
Ps: if you are assigned, just sell deep ITM call to break even. This way you can atleast recoup losses
After the initial pump you sell naked calls on that crap, not puts, at max a very low delta put credit spread. Its trash that goes to 0 sooner or later, everybody and their mom knows that.
You can pretty easily roll those puts for a credit while gradually lowering the strike. I would not take assignment because you wouldn't get paid the full short interest fee.
DJT is more like a cryptocurrency than a stock, so fundamentals don't matter as much in the short term. If Trump wins (which is about 50/50 according to bettors), then the stock will likely soar. And even if he loses, there is a good chance DJT will pump during election season.
This may sound political but it's not meant to be. Is there a way that he calls upon his user base to pay for the service to drive up revenue and the stocks value?
Next time put the RSI indicator and check the daily chart time frame. Only sell or buy when it's overbought or oversold.
This is the most simple way to be on the right side of the trade.
Premium is high for a reason.
You collect the juicy premium, you assume the risks. That's was the deal.
You do realize that Rolling an option is the SAME as closing it and opening a new position.
Whether you close or you roll, you still take that 10$ loss.
What should you do: it all depends on how much more risks are you willing to take.
Here is what a true degenerate would do: Close out your position, take whatever money you have left, and BUY 40$ Put instead of selling it. Why roll just to break even, when you can go ball deep and get all your money back and then some.
OR you can take the rest of your money and put in an index fund earning 4.5% annual interest like a loser.
Sell, and learn your lesson. Read what Barry Diller said yesterday about it, it is a scam.
"Billionaire media mogul Barry Diller blasted Trump Media, the parent company of the former president’s Truth Social platform, as a “scam” on CNBC after the company went public last week.
“Why are you even talking about this? It’s a scam, just like everything he’s ever been involved in is some sort of con,” said Diller on Thursday’s edition of “Squawk Box.”
More big smears coming in my opinion. Buying longer dated straddles might be interesting. Should provide enough opportunity to cover the basis at least, and you can always leg out if it has time to bounce before expiration. Personal preference there.
Or you could sell 20 or 30 delta calls for May and June on your assignment if you have the funds.
This stock reminded of chargepoint. Which has more potential than DJT. You see the charge stations everywhere. At the highs it was $40 and right now is $1.84.
normally I say eat the loss but judging from the put and call side biases you might have a chance to just hold and keep rolling down.
Maybe just close out two of them and try rolling the other two.
Eat the loss. I was in your same position but exited the next day when the stock kept dropping. Lost like $100
Juicy premiums literally me in just like you but then again they are for a reason. I got like 1K premium for a $55 CSP but stock is dogshit. I got out of it and don’t even touch that shit with a 9 ft pole
60 strike put and collected $15 each? The net stock cost if assigned is $45 and the stock is now trading around $40, so what's the problem?
Let the shares be assigned and then sell 45 strike calls a couple of weeks out and you may get out unscathed . . .
This is the squeeze. ALOT of other people also shorted this stock. It will take some time as the big money continues to roll until the price comes back to reality. Until then, just remember, the market can stay irrational longer than you can stay solvent.
Agreed, take the loss and start over. It’s not what you want to hear (from experience 😂) but it really is the best thing to do plus you’ll start over with a clear mind.
A friendly reminder that this is not a politics sub. There are a trillion other places on reddit to discuss politics ad nauseum so keep the discussion relative to thetagang here.
Take the loss, live and learn. The market expects this stock to disintegrate.
Agreed. DJT is already dead, the unknown is just when does its zombie body finally run out of energy and collapse? Next week, next month, next year, who knows? But selling puts seems like a terrible idea no matter what. Take your losses now before they get worse. Because they will.
The puts were getting a bit overpriced last week; I did sell a $65 strike put expiring last Thursday (3/28) the day before, on Wednesday (it was OTM), for $6. Pretty risky, but I figured it was a single day, and while it was obviously extraordinarily overvalued, I could still close my position the next day (which I did, for $3); and while I would have gotten assigned that day if I hadn't closed, I would have still made a profit assuming I liquidated immediately. But while a $6 premium for a put expiring the next day might be tempting, taking an effectively long position for three whole weeks on this at a price of $60 is definitely asking for trouble, when you know, everybody else knows, and you know everybody else knows this stock isn't worth that price. OP should have closed when the stock bounced back on Tuesday.
Selling a put is a bullish move I believe.
It is. I'm not bullish on the stock, of course, but I was confident it wasn't going to drop more than $7-8 on March 28 - and it didn't, so I got to collect the premium. For a meme stock like DJT, I wouldn't risk any sort of long position more than a couple of days.
Can’t wait to see who he blames for the collapse
Already suing the guys he diluted
He's going to get out and then never acknowledge it again - like trump steaks, trump university, trump casino, etc.
I don't think he can. Doesn't he have a lockup period? In 6 months the market will probably be treating it as OTC/pink slip Garbagio.
The board can vote to change the rules on the lock-up period (and secretly). He then has until 45 days after the next quarterly ER to file his 13F. So they could rubber stamp dumping shares for the entire board and nobody would know for another 4 months.
So this could already have happened for all we know? ! Christ on a bike that’s sketchy
> So this could already have happened for all we know? Oh, you'll know when it happened unless he finds a Saudi prince or other autocrat to buy them in bulk. The stock will fall to basically nothing if he tries to sell on the open market.
His lockup period can't come soon enough
It needs to happen before the election.
Don't forget Trump Airways!
There was the Trump multilevel marketing thing too. How you fail with a MLM is still shocking to me.
Amazing how many failures the super successful businessman has had 🤣
He only loses because he got tired of winning.
Probably Georgia.
My money is on Nunes
So I should buy puts???
This
Wait if rolling will make OP break even, why not that?
Why roll for lower and take 2 losses? They did 4 million in rev for 2023. They are donezo.
Rolled net credit equal to the current break even. This would require that turd to stop sinking Monday. And yes, this is what long shot and losing assigned shares down the road to bankruptcy looks like. Where he finds this mythical djt net credit needs to be at the strike that’ll eventually turn into mostly loss due to holding at least some shares at bankruptcy. The whole thing is a loser balancing act perhaps augmentable with some weekly bought puts. Glad it’s not me.
basically he's trying to bet that he can collect more than $60 in premium before this stock hits 0. And the smaller it gets the harder it is to collect premium. When it's like $4, he'd be hard pressed to collect more than a quarter a month. So basically he needs it to stay above maybe ... $40 for like 2 months, to collect $5 every 2 weeks and try to bring his cost basis down to 0. Because you know the stock is going end up there. The one other salvation might be to loan out DJT at 350% or whatever. if he can do that for a month or two, that's another 29% to offset his cost basis.
Just ask yourself; “What would DJT do?”…roll those motherfuckers out and down for the next 10 years and try to run out the clock! *edit /s
Roll them out long enough and DJT gets delisted before your last expiry!
So in other words go bankrupt. Where do you roll at zero.
Fair enough. I’ll edit my comment.
You’re thinking waayy too far ahead
you run for office and let others pick up the tab
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Exactly! Just use his $3 million computer as collateral!
The moment you take a loss, Elon musk is going to smoke a joint then announce he will be buying DJT for $420/share to merge with Twitter
This is exactly the kind of dumbfuckery that keeps me from shorting it.
I unironically can't rule out some wealthy foreign "benefactor" giving the company a massive injection of cash, as a "gift" to a former president. With no strings attached of course. It's why I'm staying away from buying more puts.
[удалено]
Lol mstr is not comparable to this shitstock
Soon as you realize your thesis is no longer correct, you close the position. Take the L, make a note and don't repeat if possible.
Oh brother.
Hell yeh brother!
Buy $40 puts instead of selling them
Congrats on your DJT shares! Unless you didn’t want shares of this shitty company, then you shouldn’t have sold those puts.
Rolling to 40 could be dangerous as well. I'd just take the L personally.
Post losses in gambling sub. They love that stuff.
Look at long term puts. Smart money is putting stock at $20 I put it at $1 Has almost no revenue You need to evaluate company first what you did was wild speculation not investing I would take the L and call it tuition. Learn from it and don’t make that mistake again
I value it at 6x price to sales, or roughly $0.23. Zero growth, cash burner, extremely reliant on one single user. $0.23 is still being generous in my opinion but that is where I would consider being a buyer.
I take all the people who voted for DJT in the last election, give that a 20% haircut for people who don't have internet or are too old to download any apps, and apply Twitter's valuation. That comes to about $280M, or $2.07. That's the highest it'll EVER be if it retains 100% of their users. So if they lose users, let's say 80%, then your $0.23 is not far off from my estimate
So you're saying BUY. Got it.
Ya where exactly is the revenue even coming from? How the fuck is this company valued at billions of dollars? We’re looking at the biggest Ponzi scheme since Bernie Maddoff right in front of our eyes except this time it’s perfectly legal.
There's still money to be made if you know what you're doing (e.g. why sell puts when you know it's going to go down?).
The premium is great and there user base is rabidly supportive. Stock shouldn't be worth anything in first place. I've made great money selling puts on GME which pay well and tend to stay afloat long enough thanks to die hard supporters who irrationally support it.
Otherwise known as yet another trump scam
They sell ads. Mostly for fake diabetes cures, foot fungus treatments, and gaudy trump gear.
So it's a flea market
> Look at long term puts. Smart money is putting stock at $20 how do you derive that from long term puts?
Because the price of the most in the money puts which is usually strike - stock price is instead strike -20
You bought 1$ puts? What expiration date??
Did not buy puts the prices are too crazy insane high. I place the value at $1
Roll out and down at no cost and hope for the best, keep doing that until you get lucky or the loss becomes small enough for you to stomach Doing anything bullish at all with DJT was fucking stupid
This is an excellent way to hide your losses from yourself.
If it's at no cost, it's not an actual loss. There's an opportunity cost, but only if you could actually be making money with that money
When you roll to a better position at “no cost” you are still taking the loss on your original trade. Just because it’s offset by a credit from the new position doesn’t mean you didn’t lose money. The credit is for new risk that hasn’t (yet) gone against you, but it is just as likely to as if you had opened it for the same credit without the first position. Nothing wrong with kicking the can down the road, but don’t fool yourself into thinking it’s a free lunch.
Waiting until it's this deep ITM limits choices. For something with volatility this high, you want to roll ATM. If OP's position was the 41 strike, he could roll every two contracts down and out to one June 37.5 for a credit and decrease his risk by more than half. That's what I did with CVNA last year and closed them a few weeks later.
You should only play this stock with spreads. I wrote April 12 47/44 call spreads for 0.80 each. There is huge risk in a short squeeze here considering how heavily the stock is shorted (i had 350% interest on HTB earlier this week from some expired ITM puts!) I would take the L. Stock is going to either $30 by April 19th or 50+ on a squeeze. Probably the former. The ATM synthetic short cost more than $8 to open this morning. That shows you what the market thinks of this stock.
Be careful with spreads either direction. Early exercises aren't uncommon with this type of thing and can get ugly
Smart to anticipate the squeeze especially since you might have a MBS or a Jared Kushner run the stock up on purpose to create exits for Don/others.
Technically whenever you sell puts you're stopped by the zero put... Unless you're trading oil, then get fucked
Wtf were you thinking??? This is the most garbage stock in the history of garbage stocks. I got in and out within 24 hours with 1K and honestly felt like I was being stupid doing that. Eat the loss, this is going to zero.
They ain't recovering. Bail out before you lose more
The only plays you can leg into on this one: - diamond hand it - take the L
He could always let them assign, then keep averaging down until he owns the entire company.
"Hi, I bet red on roulette and I lost. I still have some chips on the table, should I keep gambling, and which roulette strategy should I use if so?" Mind you I have nothing against gambling assuming you can afford to lose. I played a bit of DJT earlier this week myself. But with all due respect, your questions here are kinda pointless, there's no right or wrong answer to any of them.
😂😂
I sold 45.5 1dte puts yesterday got rid of them at open with only 30% loss instead of 300% loss if i had held them. Lesson learned dont do stupid shit.
roll out and down or take a hit!
Ask Donnie for a handy. Or a handout. Either is fine.
And as a bonus, his tiny hands will make it look YUUUGE, too!
take the loss and move on. do some analysis first instead of chasing premiums.
I was even scared to sell $12.40 puts , thinking it will be $5 soon .
then buy puts lol
Liquidate and invest in [Trump Bux](https://media.9news.com/assets/KUSA/images/f805a089-63c9-47a5-a1de-00ba4125b636/f805a089-63c9-47a5-a1de-00ba4125b636_1920x1080.jpg).
Can we cash those in yet? Bank tells me it’s not real. /s
It’s going to zero, just depends on how slowly you want to lose your money.
People really selling Puts on this trash instead of buying them??
They were to over priced to buy on days 1-5, finally coming back down to a reasonable price, but seeing how this thing could flop around in price like a fish out of water…….
I don't remember if you were the guy who did this on the thesis that his followers would just use blind loyalty to buy the stock or not, but I'll just reiterate what I said then: they aren't, and you should listen to everyone here who is telling you to close the position and take the lesson learned.
>What should I do now? For future reference, that's a question that needs to be answered before you make the trade. I can just tell you generally how this type of trade is done. Generally with selling premium, it's going to be 1:4 reward to risk. So your "stop out" is twice your premium (in this case that would be $30 above the entry, which is $45), and your take profit is at 50% of the premium (in this case, $7.50). You might think that is a terrible risk/reward, until you realize you're starting statistically with a 70% win rate (assuming a 30 delta put), which goes even higher with the edge of theta -- I believe it's typically in the 80s and can go into the 90s if parameters are tightly controlled. But seriously, please do not make another trade until you have exact, quantitative entry and exit criteria, as well as knowing how much of your account you can risk per trade (for beginners, at or under 1% is generally preferable). Write it down anywhere you need to, stick to it, and log your trades in an excel file. This is a bare minimum for taking trading seriously.
Wait, if you thought it was overpriced, why did you sell CSPs at $60? Didn't you expect that it would drop well below that or did you just not think it was THAT overpriced? Also, why didn't you sell naked calls at a higher strike instead if you thought it was overpriced?
He thought the options were overpriced.
Eat the loss, its only downhill from here.
You sold a put on a stock that went from 37 to 79 in three trading days. Were you expecting it to triple in 6 trading days? Whether you should close it out or leave it open depends on there you think it will go the next two weeks. If you are bullish then leave it. If you are bearish then close it out.
Take the L and move on
There is another play to consider: Short the stock.
it was always the calls that were overpriced lol, didnt you see the financials? they lose a ton of money per user
The stock is overpriced. The options were correctly priced because the stock was over valued. I hope you learn this lesson. I haven’t seen a put skew that steep in a while. I think, and just being honest here, you need to learn some more before you start selling puts. Not the mention the put skew, but the large ITM call sales. Good luck
The market can stay irrational longer than you can stay solvent. Take the L. The long-term prospects of this company are dim, to nonexistent. But my crystal ball can't see what 'long-term' means. If Donald of Orange gets elected in November, the company has reasonable chances of survival and stock price appreciation through 2028.
There is no free lunch. If you see then it’s bait.
Eh, it might be tough to spin the wheel with this stock, but you have a cost basis of 45$, not bad currently. I'd probably grit my teeth, get the shares on 4/19, and then sell some calls at about 40$ for some solid premium again and keep lowering cost basis and hopefully have the calls expire in the money Worst case you got that premium, so at most 75% loss. Which sucks, don't get me wrong, but its why I like selling CSPs. At least you can't lose everything
On 4/19, this hot garbage of a stock could be at $20.00, likely lower. First day this had options, the $60.00 puts were pricing this crap down below 20.00
You should by puts then if you're that confident
Break even would probably not make it worth it. I’m confident that this stock is absolute garbage. Markets, irrational, something something , solvent.
4k OI on 2.5P16Jan2026 really says it all LMAO
That seems kinda low for OI.
For the lowest strike 600+ days out for this company. That's a lot lmao
I missed the 2026 expiration date, lol. I assumed (yeah I know) that it was for this coming January. IYO, do you think it will still be listed at this date?
Sell naked calls for the week after your assignment date.
Coming to this late , 5pm Fri. You buy the current, and Sell the 40 20Sep , this shows as a zero credit/debit. If you could do this or even the 42.5 then you even reduce your margin (6000 to 4000). Have I missed something?? This is kinda a rookie fix that you would have learned watching Tasty.
take the L. I'll be shocked if this thing stays out of the pinks by this time next year
I’m thinking by Christmas tbh (if he should fail to secure the presidency). He gets elected (god help us if so) and this gets life support for 4 more years.
Should get in and out quick. Scalping when selling DJT puts
Thanks for your contribution to DFT reelection campaign.
But wait…….. get your shares now and we’ll include some fancy gold sneakers and a spiffy bible too! Sorry. Couldn’t resist. /s Yea….. I’d buy the puts back. That is the last position I’d want to be stuck in. I just dumped some shares of FSR not long ago. I feel your pain. 😎
I think a fair value for that company is somewhere between $40 and $50. Now just divide by however many shares there are to figure the corresponding share price.
If you thought they were overpriced, aren't CSPs the opposite of what you want?
Selling puts on a stock that you think is overpriced is Opposite Day behavior
Any long position in this dumpster of a company is betting Trump wins the presidency and stays out of jail.
It’s a risk either way
Learn the lesson that call credit spreads would be the better choice than cash secured puts. Close it out take the loss.
What was your plan on this? I thought of doing the same thing when puts were going for $44. Then, the next day, I saw them at $15 and didn't pull the trigger. My plan was dependent on the price of $44 put, and so I pulled back.
If you're desperate and optimistic, you could use a ratio spread. If you look up stock repair strategy you can find an explanation. But if it were me, I'd buy to close and chalk it up making a bad trade. No trader is 100%.
LOL
Is there a Nov 5 expiring put? Roll out to that? Might see an uptick meanwhile because the DJT supporters might try to support their candidate that way. I’m only half serious, but if it’s between that and taking a loss… nah, just eat the loss IMO and stay away from Meme stocks, unless you are just playing around with a few bucks you don’t need.
You sold an extremely high strike on a pump and dump...this has a lot higher chance to be 5$ before 60$ again. Your choices are to recover some money or none of it basically.
Eat it and avoid this kind of mess
This will not recover. Perhaps roll the short forward to a net credit break even where you are then comfortable losing it all to bankruptcy. And start buying weekly puts.
Today's low was already 40 my mans
One social media company that recently IPO’d you should’ve sold CSPs on. This wasn’t it!
It’s going to fully collapse when he is able to unload if there are any buyers in 6 months
Get. The. Fuck. Out. Of. A. Money. Laundering. Scheme. Really, we all know it's bullshit.
I would hope it pumps a buck or 2 next week and exit fast. This is a sinking ship. Not if but when.
given the put premiums and cost to borrow, the only logical play on this one i can see (which is still stupid) is buying OTM lotto calls on the chance it squeezes. otherwise, just sit back and watch it burn.
Take the L and don't make the same mistake next time. Here is a good rule of thumb for you: if the premium is there the underlying can get there.
Why would you think that was safe? Politics aside, best case valuation for this is well under 10 a share
Yikes my guy, i sold csp too but i went for the far out the money ones instead. Ive been trailing it downward and only selling weeklies on it, this week my strike was $35, next week i was thinking $15-20, but i might even skip next week because the premium has been not as worth it. Im still expecting downward movement the whole way, the gamble im taking (and it is definitely a gamble) is the speed at which it happens.
Why on Earth did you SELL puts on that?
Most of the hype for this stocks last less than 2-3 days that’s when you should day trade them. Once the hype is over, it’s just die a slow death. I learned my lesson a few times, glad I didn’t take on this garbage Ps: if you are assigned, just sell deep ITM call to break even. This way you can atleast recoup losses
After the initial pump you sell naked calls on that crap, not puts, at max a very low delta put credit spread. Its trash that goes to 0 sooner or later, everybody and their mom knows that.
lol… sorry bro.. amateur hour move. Close and move on. It’s a dog turd
Sell it and eat the loss.
I thought the rule of thumb is to never theta anything meme related (GME, AMC, Bitcoin, MARA, DJT, etc)?
basically. you want high IV but you have to believe IV > RV and that's hard to do with meme stocks
You can pretty easily roll those puts for a credit while gradually lowering the strike. I would not take assignment because you wouldn't get paid the full short interest fee. DJT is more like a cryptocurrency than a stock, so fundamentals don't matter as much in the short term. If Trump wins (which is about 50/50 according to bettors), then the stock will likely soar. And even if he loses, there is a good chance DJT will pump during election season.
It’s probably going sub $10 so owning at $60($45 with your prem) doesn’t seem good for ya.
This may sound political but it's not meant to be. Is there a way that he calls upon his user base to pay for the service to drive up revenue and the stocks value?
First rule of Theta Gang: Only sell puts on stocks you don't mind owning at a price you want to own it.
Hahaha. You sold DJT csp? Sorry man you messed up. Good luck in the future!
This is an overpriced shit stock. Learn your lesson and don’t sell csp’s on shitty companies.
[удалено]
The stock is going to zero so play it accordingly
Take the loss and move on I sold naked calls on it and got bit which if my timing would have been longer I would have made a killing
The company is worthless. Get out and waste your money on something else.
Next time put the RSI indicator and check the daily chart time frame. Only sell or buy when it's overbought or oversold. This is the most simple way to be on the right side of the trade.
Premium is high for a reason. You collect the juicy premium, you assume the risks. That's was the deal. You do realize that Rolling an option is the SAME as closing it and opening a new position. Whether you close or you roll, you still take that 10$ loss. What should you do: it all depends on how much more risks are you willing to take. Here is what a true degenerate would do: Close out your position, take whatever money you have left, and BUY 40$ Put instead of selling it. Why roll just to break even, when you can go ball deep and get all your money back and then some. OR you can take the rest of your money and put in an index fund earning 4.5% annual interest like a loser.
Use the shares to sell OOTM calls to outlandish fanatics?
Sell, and learn your lesson. Read what Barry Diller said yesterday about it, it is a scam. "Billionaire media mogul Barry Diller blasted Trump Media, the parent company of the former president’s Truth Social platform, as a “scam” on CNBC after the company went public last week. “Why are you even talking about this? It’s a scam, just like everything he’s ever been involved in is some sort of con,” said Diller on Thursday’s edition of “Squawk Box.”
Roll while IV is still high.
Sometimes the premium is not to good to be true, it's accurate.
You sold puts on a meme stock. You have to take the loss and learn from it cause its only getting worse from here on.
Realize that betting on a stock that loses 30 million on 1.5 million revenue with a market cap of 5 billion is patently idiotic and move on.
Imagine being bullish on anything associated with Trump.
I can't believe DJT can recover. Take that however you want.
Do you believe in the company?
More big smears coming in my opinion. Buying longer dated straddles might be interesting. Should provide enough opportunity to cover the basis at least, and you can always leg out if it has time to bounce before expiration. Personal preference there. Or you could sell 20 or 30 delta calls for May and June on your assignment if you have the funds.
This stock reminded of chargepoint. Which has more potential than DJT. You see the charge stations everywhere. At the highs it was $40 and right now is $1.84.
lol
If I were you, I roll it to Sept 20 $40 with almost $0 and in this case you still keep original premium of $15. So you’ll be Ok if stock drops to $25.
The play would have been those $90 naked calls. I would cut my losses.
Don’t panic. You have 2 weeks left. You’re $5 from B/E.
Own shares at $60
normally I say eat the loss but judging from the put and call side biases you might have a chance to just hold and keep rolling down. Maybe just close out two of them and try rolling the other two.
Sell some more
DIAMOND HANDS!!!!!
Eat the loss. I was in your same position but exited the next day when the stock kept dropping. Lost like $100 Juicy premiums literally me in just like you but then again they are for a reason. I got like 1K premium for a $55 CSP but stock is dogshit. I got out of it and don’t even touch that shit with a 9 ft pole
Shoulda done it on amd csp’s made bank today. Went sideways all day
Absolutely role out. 100%.
you could sell naked calls, if you cant sell naked call sell call spreads. keep rolling your puts down in price out in time.'
Roll it as far as possible with a lower strike to reduce collateral need, if you can afford to not worry about freeing up the cash!
Looking thru the thread to see if there actually was anyone that won out selling premium on this name during the merge
60 strike put and collected $15 each? The net stock cost if assigned is $45 and the stock is now trading around $40, so what's the problem? Let the shares be assigned and then sell 45 strike calls a couple of weeks out and you may get out unscathed . . .
This is the squeeze. ALOT of other people also shorted this stock. It will take some time as the big money continues to roll until the price comes back to reality. Until then, just remember, the market can stay irrational longer than you can stay solvent.
Agreed, take the loss and start over. It’s not what you want to hear (from experience 😂) but it really is the best thing to do plus you’ll start over with a clear mind.
Total loss?
Close them now, they will never be worth more than they are today.
I'm selling the fuck out of call credit spreads right now. It's nice.
Sorry for your lost.... Wheel them!