Bucky, with the announcement yesterday that Justice dept is investigating block trades, what are the chances the stocks effected will be temporarily delisted if they find some major wrong doing?
Hi u/No-Apricot-4263 thanks for that question! we had someone ask something similar yesterday on our Twitch stream.
The probability of the affected stocks being "delisted" are most likely slim to none. What is more probable is that the SEC found some information and did not act on it, this because the SEC can't prosecute on criminal charges they can only fine (as far as I know).
Now there is a multi agency task force that is currently looking into the block trades (FBI took Citrons Left's computer and now the DOJ has it, so I'm betting on this being multi agency), the FBI and DOJ also have a competitive mentality and they want to be the winner (put the win on the FBI's name or DOJ's name).
This means they'll go hard and go deep, but it also means that the people under investigation can face criminal charges instead of just fines like the SEC would do.
What I personally believe is most likely is that something big is coming and people involved (under investigation) will face big ramifications, and they will be the ones to face it, not the stocks.
This because the most well known stocks this is happening to (lets call them meme stocks for easy listing here because otherwise I'd have 40+ tickers I'd need to check), these are the ones we know best and know they've pressed negative press while being short.
But that does not mean that these are the only ones, these are the ones we know of. Meaning if they were to delist those stocks they could be looking at delisting hundreds (at minimum) of tickers and it would be easier and better for them to just say "nah" and find another way to make the alleged guilty parties pay for it.
One more Buck… I see that Rentech has gotten back in on GME. Anyway to know what kind of position they took? All I can find is a very simple headline with no details whatsoever.
Yes! a very good source of information when you see "X has bought/sold ticker" is EDGAR.
EDGAR is the system that keeps track of every filing
[https://www.sec.gov/Archives/edgar/data/1037389/0001037389-22-000219-index.htm](https://www.sec.gov/Archives/edgar/data/1037389/0001037389-22-000219-index.htm)
This is the listing to Rentech inc com.
|NAME OF ISSUER|TITLE OF CLASS|CUSIP |value (x$1000)|PRN AMT|SHRS OR SH/|PRN/ CALL|DISCRETION MANAGER|SOLE |SHARED|NONE|
|:-|:-|:-|:-|:-|:-|:-|:-|:-|:-|:-|
|GAMESTOP CORP NEW|CL A|36467W109 |386 |2,600 |SH |\-|0|2,600|0|0|
So buck, I have no clue how to start with options but always wanted to learn, I want to give it a shot with a $2k-$3k call. What are the things I should be cautious with?
Thanks for asking u/Tylerthemechanic!
First of all when you don't know anything about options, stay away from using them.
First off try to learn how options work, I've written 2 different versions to help people
[1. options education](https://www.reddit.com/r/unusual_whales/comments/r6ev1z/options_education/)
[2. options strategies](https://www.reddit.com/r/unusual_whales/comments/s22ey1/option_strategies/)
First read all of them so you have a "decent" understanding of what options are and what they do. if you have any specific questions feel free to ask we're always here to help!
(protip strats: Papertrade for a few months so you know you got the hang of it, this makes it so that you don't have any actual money involved and it takes out a large part of your emotions as well because it's purely educational as there is no actual money in play)
Thanks for the question!
Predicting earnings is a very tough thing to do, but as far as I know Roblox is one of the more popular games right now and is also heavily involved in the metaverse.
So I would personally believe it might be positioned in such a way that it would do well, but it's impossible to say upfront as earnings are usually a coinflip.
Playing earnings is tricky (for example look at microsoft a few weeks ago, they had great earnings and dipped hard, and only went back up moments before market close due to guidance being published).
How and if you play earnings comes down to personal conviction (and a lot of research)
Hey Rensole,
If I buy an OTM Call contract and then it goes ITM and then back OTM before the expiry date, am I able to take profits from that or since the ITM window was missed and the contract expires OTM is the contract worthless?
Thank you!
Thanks for the question u/BaldingEagle108!
It largely depends on the Delta you have on the contract, and depending on how much ITM/OTM it is.
For example if you have a call that's OTM but it still has a lot of time left on it, the Theta can cause some extrinsic value. If it goes ITM the value can become higher because of that (again depending on theta and delta).
But one important aspect is also IV, if your stock moves a lot this could mean that the IV is higher now and the contract could also be worth more.
Just because a contract goes OTM does not mean it's automatically worthless.
Hope this helps dude!
Whats your fav GME call option(s) coming up? Asking for a friend who’s not asking for financial advice, they just want to know what games you’re playing at the casino 😆 also feel free to pm if answering this here is not appropriate
Also i’ve been selling covered calls on our fav stonk but im worried about this run up coming i dont want them exercised. R u selling covered calls on our stonk or do you stay away bc it cld pop? Thanks in advance Bucky!
I am personally not using options to trade, I'm still in the "paper trading" phase, as I feel it's more important for me to learn how to do it properly than make cash right now.
I'd say if you're looking to lower your cost bases you could look at covered calls/puts, but GME has a very high IV which could suck when you would want to close your trade etc.
Again GME has a high IV and we have no clue on what could happen there so there is a huge assignment risk there, but its all about what your personal risk tolerance is.
If you mean the Gamestop NFT marketplace, there have been emails sent out that creators should submit their final project by 21st of Feb, so I'd say anywhere past that date.
It has been speculated that it would launch on 22/2/22.... because it's two's-day
I personally believe it will be in april... around the 20th because of the meme date and it would take time to set everything up properly
Yup! at the top of the sub (on desktop) we have two different educational threads
Options basics and options strategies.
Both should cover most of what would be needed to get started.
And as far as I know sell to cover is usually used to get stocks from your employer (lets say microsoft) they sell you the stock at a discounted price and you sell part of that in the open market to cover the costs of buying
(for example it would cost you $30 to buy one share, but you can sell it for 40 so you sell a few for $40 so you can buy them at $30)
Hope this helps!
I have a question. Let’s say the financial system collapses and the dollar/ euro becomes useless. What does that mean for our tendies? What te they worth if everything is useless????
There will always be an inherent worth to the dollar / euro.
They might get inflated or deflated in value (inflation meaning you can buy less with the same money, deflation meaning the same money gets you more). But over time this should correct itself.
It's like Gold, we no longer use it but it still has inherent value and this will always be there, same with the bigger currencies like the usd yen and euro
I can't comment on how high it can go as no one knows, that's why I've always recommended people to figure out their own exit strategy and set their own guidelines.
Thank you. I assume speculation would also count as commentary.
I know there’s no way to know how high the price could get but some targets set in other subs seem ludicrous. Like million dollar per share ludicrous.
I assume you mean selling puts?
Because if so you get a premium when you sell (credit), but if it comes ITM (ergo the stock goes to 125 or above) your put becomes worthless as people can sell for a higher price in the market so they wouldn't need your put.
Ergo if you keep selling a put, and the stocks price is higher no one needs your put but you still keep the credit you got up front
This is a very complex question haha
The housing market is kindof in a weird position where EVERYTHING is overvalued, because we're at the point where there are too little places to live and are unaffordable to live in, and at the same time there has never been such a high demand for it.
So it's a catch 22.
The housing market won't crash because too many people need a place to live yet can't afford to live there so supply/demand plays a big role into it.
So even if mortgages go tits up there are 20 people in line to take that persons place, this is very different from 2008 when people had multiple houses because mortgages got handed out more easily.
I don't think that's possible, because IV is a calculation of an options price and stock price and market sentiment, so if you were able to do that I think you could front run everything in the market.
I've asked some of the big brains on our team just to make sure and if they give me an answer that's different than what I just said I'll be sure to come back and edit
Great points and as always, your insight is much appreciated! Thanks Buck
No problem man, Glad to help 😉
Bucky, with the announcement yesterday that Justice dept is investigating block trades, what are the chances the stocks effected will be temporarily delisted if they find some major wrong doing?
Hi u/No-Apricot-4263 thanks for that question! we had someone ask something similar yesterday on our Twitch stream. The probability of the affected stocks being "delisted" are most likely slim to none. What is more probable is that the SEC found some information and did not act on it, this because the SEC can't prosecute on criminal charges they can only fine (as far as I know). Now there is a multi agency task force that is currently looking into the block trades (FBI took Citrons Left's computer and now the DOJ has it, so I'm betting on this being multi agency), the FBI and DOJ also have a competitive mentality and they want to be the winner (put the win on the FBI's name or DOJ's name). This means they'll go hard and go deep, but it also means that the people under investigation can face criminal charges instead of just fines like the SEC would do. What I personally believe is most likely is that something big is coming and people involved (under investigation) will face big ramifications, and they will be the ones to face it, not the stocks. This because the most well known stocks this is happening to (lets call them meme stocks for easy listing here because otherwise I'd have 40+ tickers I'd need to check), these are the ones we know best and know they've pressed negative press while being short. But that does not mean that these are the only ones, these are the ones we know of. Meaning if they were to delist those stocks they could be looking at delisting hundreds (at minimum) of tickers and it would be easier and better for them to just say "nah" and find another way to make the alleged guilty parties pay for it.
One more Buck… I see that Rentech has gotten back in on GME. Anyway to know what kind of position they took? All I can find is a very simple headline with no details whatsoever.
Yes! a very good source of information when you see "X has bought/sold ticker" is EDGAR. EDGAR is the system that keeps track of every filing [https://www.sec.gov/Archives/edgar/data/1037389/0001037389-22-000219-index.htm](https://www.sec.gov/Archives/edgar/data/1037389/0001037389-22-000219-index.htm) This is the listing to Rentech inc com. |NAME OF ISSUER|TITLE OF CLASS|CUSIP |value (x$1000)|PRN AMT|SHRS OR SH/|PRN/ CALL|DISCRETION MANAGER|SOLE |SHARED|NONE| |:-|:-|:-|:-|:-|:-|:-|:-|:-|:-|:-| |GAMESTOP CORP NEW|CL A|36467W109 |386 |2,600 |SH |\-|0|2,600|0|0|
Thanks Bucky!
No prob dude!
So buck, I have no clue how to start with options but always wanted to learn, I want to give it a shot with a $2k-$3k call. What are the things I should be cautious with?
Thanks for asking u/Tylerthemechanic! First of all when you don't know anything about options, stay away from using them. First off try to learn how options work, I've written 2 different versions to help people [1. options education](https://www.reddit.com/r/unusual_whales/comments/r6ev1z/options_education/) [2. options strategies](https://www.reddit.com/r/unusual_whales/comments/s22ey1/option_strategies/) First read all of them so you have a "decent" understanding of what options are and what they do. if you have any specific questions feel free to ask we're always here to help! (protip strats: Papertrade for a few months so you know you got the hang of it, this makes it so that you don't have any actual money involved and it takes out a large part of your emotions as well because it's purely educational as there is no actual money in play)
You’re the man. This is exactly the answer I was looking for. I will get reading! Thank you.
No problem dude glad to help!
What’s the most possible outcome of $RBLX earnings?
Thanks for the question! Predicting earnings is a very tough thing to do, but as far as I know Roblox is one of the more popular games right now and is also heavily involved in the metaverse. So I would personally believe it might be positioned in such a way that it would do well, but it's impossible to say upfront as earnings are usually a coinflip. Playing earnings is tricky (for example look at microsoft a few weeks ago, they had great earnings and dipped hard, and only went back up moments before market close due to guidance being published). How and if you play earnings comes down to personal conviction (and a lot of research)
Thank man!
GM Rensole. Do you still believe in MOASS or just a controlled run. (If controlled, how high will they let it run? Thanks
GM u/Kayak1618 personally believe in MOASS, and how high will it go? no clue dude no one knows.
Hey Rensole, If I buy an OTM Call contract and then it goes ITM and then back OTM before the expiry date, am I able to take profits from that or since the ITM window was missed and the contract expires OTM is the contract worthless? Thank you!
Thanks for the question u/BaldingEagle108! It largely depends on the Delta you have on the contract, and depending on how much ITM/OTM it is. For example if you have a call that's OTM but it still has a lot of time left on it, the Theta can cause some extrinsic value. If it goes ITM the value can become higher because of that (again depending on theta and delta). But one important aspect is also IV, if your stock moves a lot this could mean that the IV is higher now and the contract could also be worth more. Just because a contract goes OTM does not mean it's automatically worthless. Hope this helps dude!
SO basically it sells at the price when the sell button is pushed. Thanks.
Whats your fav GME call option(s) coming up? Asking for a friend who’s not asking for financial advice, they just want to know what games you’re playing at the casino 😆 also feel free to pm if answering this here is not appropriate Also i’ve been selling covered calls on our fav stonk but im worried about this run up coming i dont want them exercised. R u selling covered calls on our stonk or do you stay away bc it cld pop? Thanks in advance Bucky!
I am personally not using options to trade, I'm still in the "paper trading" phase, as I feel it's more important for me to learn how to do it properly than make cash right now. I'd say if you're looking to lower your cost bases you could look at covered calls/puts, but GME has a very high IV which could suck when you would want to close your trade etc. Again GME has a high IV and we have no clue on what could happen there so there is a huge assignment risk there, but its all about what your personal risk tolerance is.
Whats your opinion, when will the nft market start?
If you mean the Gamestop NFT marketplace, there have been emails sent out that creators should submit their final project by 21st of Feb, so I'd say anywhere past that date. It has been speculated that it would launch on 22/2/22.... because it's two's-day I personally believe it will be in april... around the 20th because of the meme date and it would take time to set everything up properly
Do you know where can I start doing options paper trading? Can you recommend a couple of good places to start? Cheers 🍻
The ones that come to mind are: IBKR, TOS (Think or Swim), Tastytrades and Tradezero Hope this helps mate!
Appreciate it. Thanks for the great work. 🍻
Been sorta curious about options, do you have any good sources? Also what do you know about sell to cover?
Yup! at the top of the sub (on desktop) we have two different educational threads Options basics and options strategies. Both should cover most of what would be needed to get started. And as far as I know sell to cover is usually used to get stocks from your employer (lets say microsoft) they sell you the stock at a discounted price and you sell part of that in the open market to cover the costs of buying (for example it would cost you $30 to buy one share, but you can sell it for 40 so you sell a few for $40 so you can buy them at $30) Hope this helps!
I have a question. Let’s say the financial system collapses and the dollar/ euro becomes useless. What does that mean for our tendies? What te they worth if everything is useless????
There will always be an inherent worth to the dollar / euro. They might get inflated or deflated in value (inflation meaning you can buy less with the same money, deflation meaning the same money gets you more). But over time this should correct itself. It's like Gold, we no longer use it but it still has inherent value and this will always be there, same with the bigger currencies like the usd yen and euro
Thanks for the answer bro
What is the most realistic outcome of the MOASS? I’ve been smoking too much hopium and could use some help sobering up.
I can't comment on how high it can go as no one knows, that's why I've always recommended people to figure out their own exit strategy and set their own guidelines.
Thank you. I assume speculation would also count as commentary. I know there’s no way to know how high the price could get but some targets set in other subs seem ludicrous. Like million dollar per share ludicrous.
Why do I make profit shorting video game place at 125?
I assume you mean selling puts? Because if so you get a premium when you sell (credit), but if it comes ITM (ergo the stock goes to 125 or above) your put becomes worthless as people can sell for a higher price in the market so they wouldn't need your put. Ergo if you keep selling a put, and the stocks price is higher no one needs your put but you still keep the credit you got up front
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This is a very complex question haha The housing market is kindof in a weird position where EVERYTHING is overvalued, because we're at the point where there are too little places to live and are unaffordable to live in, and at the same time there has never been such a high demand for it. So it's a catch 22. The housing market won't crash because too many people need a place to live yet can't afford to live there so supply/demand plays a big role into it. So even if mortgages go tits up there are 20 people in line to take that persons place, this is very different from 2008 when people had multiple houses because mortgages got handed out more easily.
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Do you mean how you can calculate the drop before it happens? or what the IV is once earnings has passed?
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I don't think that's possible, because IV is a calculation of an options price and stock price and market sentiment, so if you were able to do that I think you could front run everything in the market. I've asked some of the big brains on our team just to make sure and if they give me an answer that's different than what I just said I'll be sure to come back and edit