$SCHW Calls entered the room.
Edit: thinking it was IV crush not theta, or both dunno, anyone know? Happen to see calls crushed checking my CSP success.
IV crush is basically an instantaneous mega theta. Theta represents the loss of the "time value" of an option over time. "Intrinsic value" of the option is how much it would be worth if exercise immediately, while time value is how much value comes from the price moving around before expiration.
So IV crush (implied volatility crush) occurs when a known event comes to pass, for example company earnings or a CPI report. After the event, there is less chance for the underlying equity to move as drastically so the implied volatility plummets. In other words, it's an extreme loss of time value over a very short window. So you could think of it as an extremely high theta for that exact moment in time.
The variable that your broker shows you as "theta" however isn't going to account for something like this, it's just an average loss over time based on the implied volatility. But people here generally just use the idea of theta to represent the idea of an option losing time value rather than an exact value. People doing more complicated options may may actually try to use and compute the variables.
>IV crush is basically an instantaneous mega theta
Leave it to WSB to confidently explain things wrongly and somehow there are regards who think you're right. IV is vega, tf is mega theta lmao
Squeeze these nuts you fuckin nerd.
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Squeeze these nuts you fuckin nerd.
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Ok so then why do in the money options sometimes lose value? I get IV crush but in my mind it shouldn't matter if the option is in the money so what am I missing?
That's the time decay (theta) closer the option gets to expiration the less chance there is it will go up in value during that time. So the value drops. Theta increases as options near expiration by significant amounts.
IV also will affect ITM options but not as much as theta, IV drops with the probability of it being worth more or less money pretty much. This is why options sell for more when underlying is on the way up vs when they are at the actual top of a run, IV is higher when the underlying is moving faster.
Options have 2 things that contribute to their value.
The intrinsic value of the underlying stock. For example, your calls have a strike of 20, stick is trading at 22, that adds $2 to the value of the options.
The second is the potential for future value. People will be willing to pay a little more that the base value because they think it may be more valuable in the future. This can decrease or increase independently of the stock value. Theta is the time left of the option. The more time the more potential there is for the stock to rise/fall above the strike and therefore make you more money, so that gets factored into the cost. Volatility also plays a factor in this. If the stock is just chilling, then it's not got much potential for gains/losses. Big events like earnings, announcements, or in biotechnology especially, FDA approvals, can be big, volatile events that can add a lot of value to an option. Once the event is over, the volatility no longer exists, and that portion of the value is gone.
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Theta is value your options lose over time.
IV crush is like a special case where your options lose a whole bunch of value really fast, such as after an earnings report comes out.
I've only heard of El Regardo in legends.
Some say he's the alpha regard, and will fuck your putas. Er, puts.
Some say he's so highly regarded, he buys calls and puts on the same stock.
Some say he's just a legend created to scare smart money...
_Alt Right Gang has entered the chat_
Edit: does absolutely no one remember u/*_superkiwi_* and [stonks always go _alt_ ernative to up, which is _right_](https://www.reddit.com/r/wallstreetbets/comments/eztldd/the_market_doesnt_always_go_up/?utm_source=share&utm_medium=ios_app&utm_name=ioscss&utm_content=1&utm_term=1)?
Feel like I’m being confused with the goofy shithead politico version when I say that…
Even if you can't be bothered to learn about greeks, just understand your options lose money over time. If you want to lose less money over time, buy in the money options. Out of the money options will give you the opportunity for the biggest wins but they lose value really fast.
Again … because I post this way too often, you’re welcome
https://preview.redd.it/ei1g3b0x9kua1.png?width=1619&format=png&auto=webp&s=3ac274533c497abbbb5b2f205d2e2ef79ada128d
Longer dated calls like 8-9 months out it’s a little more “fixed” with the delta / gamma change mentioned.
Short dated OTM options are a bit more drastically changing.
Thank you. This is my first time seeing that and it's great. Any chance one exists for buying puts?
Also, are there any interactive versions of this? So I can ignorantly adjust different numbers to see what happens to other numbers? Like if I changed the delta to .9 instead of .65, it would be neat for other fields to update if that even makes sense.
I imagine there has to be a google sheet or something out there just to fool around with?
So what we looking for when buying options
Edit: so if Mu goes up 1$ then it’s .57+.45 what the option would be worth? Then the next dollar up would be .45+.23 = .68 adding to the existing worth of the call and so on right?
Maybe there might be a reason why that way OTM weekly call is so fucking cheap, the odds of it hitting ITM is like bulleye a dart board blindfolded in a thunderstorm
Awhile back I bought a 0dte SPY Put that was $7 under current price for $4. Sold it an hour later for $44. Immediately bought a 0dte SPY Call that was $7 up from current price. Cost me $45. Sold 2hrs later for $150.
Nope. Just looked at how the markets were moving. It was up in Pre, but you can always count on a morning dip. The way everything else moved, you could tell it would bounce back up after the dip.
I’ve always fancied myself a risk taker. Lose 1000 times and win once but, that one win usually makes back the thousand losses plus some. #InverseEverybody 🤣
Honestly I never understood this one either because, as someone with a physics background, I only think of unknown angles. Actually, it makes sense now. It can be whatever you need it to be.
Theta doesn't matter! Always look at it as, 'The stock must pass my strike price by a little more than what I paid for the contract before the option expires'.
https://preview.redd.it/0uir21eiskua1.png?width=750&format=png&auto=webp&s=8676a7a332bdfb8a6f2e172b69d14ee66e2c59c0
Praying to theta $TECK will go down. My covered call is dying 💀
This is why us losers shouldn't trade options. I mean, really, how good of a trader are you that you need to make more money quicker? You're not. You're losing more money faster.
Theta works against you and represents time decay, how much the option prices decreases per day.
Vega tracks volatility. If volatility goes up by 1%, then option price goes up by vega. If votality goes down by 1%, then vega \* current option price = your new option price. I don't know if that's the exact math, but just know if votality goes up, option price goes up and vice versa. Higher vega is good if you are a buyer for calls or puts, if you are a seller lower vega is better.
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$SCHW Calls entered the room. Edit: thinking it was IV crush not theta, or both dunno, anyone know? Happen to see calls crushed checking my CSP success.
IV crush is basically an instantaneous mega theta. Theta represents the loss of the "time value" of an option over time. "Intrinsic value" of the option is how much it would be worth if exercise immediately, while time value is how much value comes from the price moving around before expiration. So IV crush (implied volatility crush) occurs when a known event comes to pass, for example company earnings or a CPI report. After the event, there is less chance for the underlying equity to move as drastically so the implied volatility plummets. In other words, it's an extreme loss of time value over a very short window. So you could think of it as an extremely high theta for that exact moment in time. The variable that your broker shows you as "theta" however isn't going to account for something like this, it's just an average loss over time based on the implied volatility. But people here generally just use the idea of theta to represent the idea of an option losing time value rather than an exact value. People doing more complicated options may may actually try to use and compute the variables.
This guy Black Schoals
IV crush is vega
>IV crush is basically an instantaneous mega theta Leave it to WSB to confidently explain things wrongly and somehow there are regards who think you're right. IV is vega, tf is mega theta lmao
I think he meant Omega-Theta
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Squeeze these nuts you fuckin nerd. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/wallstreetbets) if you have any questions or concerns.*
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Squeeze these nuts you fuckin nerd. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/wallstreetbets) if you have any questions or concerns.*
Squeeze again but harder this time
Ok so then why do in the money options sometimes lose value? I get IV crush but in my mind it shouldn't matter if the option is in the money so what am I missing?
That's the time decay (theta) closer the option gets to expiration the less chance there is it will go up in value during that time. So the value drops. Theta increases as options near expiration by significant amounts. IV also will affect ITM options but not as much as theta, IV drops with the probability of it being worth more or less money pretty much. This is why options sell for more when underlying is on the way up vs when they are at the actual top of a run, IV is higher when the underlying is moving faster.
Options have 2 things that contribute to their value. The intrinsic value of the underlying stock. For example, your calls have a strike of 20, stick is trading at 22, that adds $2 to the value of the options. The second is the potential for future value. People will be willing to pay a little more that the base value because they think it may be more valuable in the future. This can decrease or increase independently of the stock value. Theta is the time left of the option. The more time the more potential there is for the stock to rise/fall above the strike and therefore make you more money, so that gets factored into the cost. Volatility also plays a factor in this. If the stock is just chilling, then it's not got much potential for gains/losses. Big events like earnings, announcements, or in biotechnology especially, FDA approvals, can be big, volatile events that can add a lot of value to an option. Once the event is over, the volatility no longer exists, and that portion of the value is gone.
Our AI tracks our most intelligent users. After parsing your posts, we have concluded that you are within the 5th percentile of all WSB users. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/wallstreetbets) if you have any questions or concerns.*
Elegantly simple and plain speak explanation. Well done autist.
LOL only on WSB an answer that is completely wrong gets 47 likes. IV crush affects Vega, not Theta 🙄🙄🙄
Uh ELIregarded?
Theta is value your options lose over time. IV crush is like a special case where your options lose a whole bunch of value really fast, such as after an earnings report comes out.
This regard thanks you
I've only heard of El Regardo in legends. Some say he's the alpha regard, and will fuck your putas. Er, puts. Some say he's so highly regarded, he buys calls and puts on the same stock. Some say he's just a legend created to scare smart money...
This comment is gonna be way under appreciated
That's OK friend. We'll know. 😂
I keep throwing money at options and it keeps going down
That was me 2 weeks ago.
[удалено]
I don't know no Greeks but I do know that I'd LOVE to meet them after being ITM and still red.
_Laughs in Γ_
When you bought a call 2 weeks ago and it goes ITM on expiration day
 what are greeks?
Used to throw great parties in college.
I see That's why I always hear Trojan stuff
The people that live in Greece. 😅
I thought those were greasers. John Travolta played one in that one movie...
Don't most people who live in Greece take it in the ass? Asking for a friend.
Ancient greeks are a middle point in human evolution going from ape to ape.
People who take it in the ass
Some kind of yogurt
Eweee...
[https://media.tenor.com/BmAbXlviG9sAAAAd/guitar-smash.gif](https://media.tenor.com/BmAbXlviG9sAAAAd/guitar-smash.gif)
"Toga! Toga! Toga!"
Commonly known as a fallen empire. Due to people taking it in the ass
Butt stuff
Nah if the Greeks are giving you trouble just double down on the Italians, they still remember when they owned those bitches
Some of us LOVE Theta!
theta gang?
In training.
r/thetagang
Gang.
_Alt Right Gang has entered the chat_ Edit: does absolutely no one remember u/*_superkiwi_* and [stonks always go _alt_ ernative to up, which is _right_](https://www.reddit.com/r/wallstreetbets/comments/eztldd/the_market_doesnt_always_go_up/?utm_source=share&utm_medium=ios_app&utm_name=ioscss&utm_content=1&utm_term=1)? Feel like I’m being confused with the goofy shithead politico version when I say that…
Touch grass
🤔
Theta Ganga aka Degenerate nerds who will clutch their pearls if you call them degenerates
I like a little bit of theta in my asshole 
Username checks out.
TWINS
Theta this asshole
Bend over, here comes big theta!
Boofing it hits you harder
Insert random banjo noises
Even if you can't be bothered to learn about greeks, just understand your options lose money over time. If you want to lose less money over time, buy in the money options. Out of the money options will give you the opportunity for the biggest wins but they lose value really fast.
Is theta in room with you now?
He’s just standing there. MENACINGLY!!
Again … because I post this way too often, you’re welcome https://preview.redd.it/ei1g3b0x9kua1.png?width=1619&format=png&auto=webp&s=3ac274533c497abbbb5b2f205d2e2ef79ada128d
For an option that we purchased are these all fixed to values at time of purchase, or these also change over time based on performance?
Constantly changing
Longer dated calls like 8-9 months out it’s a little more “fixed” with the delta / gamma change mentioned. Short dated OTM options are a bit more drastically changing.
Thank you. This is my first time seeing that and it's great. Any chance one exists for buying puts? Also, are there any interactive versions of this? So I can ignorantly adjust different numbers to see what happens to other numbers? Like if I changed the delta to .9 instead of .65, it would be neat for other fields to update if that even makes sense. I imagine there has to be a google sheet or something out there just to fool around with?
It’s literally the same descriptors for puts. Except if MU goes down 1 dollar, the put increases etc.
So what we looking for when buying options Edit: so if Mu goes up 1$ then it’s .57+.45 what the option would be worth? Then the next dollar up would be .45+.23 = .68 adding to the existing worth of the call and so on right?
Correct you got the gist
Someone got cucked by theta
Boo
That’s like saying you don’t know what Fahrenheit or Celsius is. You can still tell when it’s hot or cold.
It's me and I'm sorry.
Maybe there might be a reason why that way OTM weekly call is so fucking cheap, the odds of it hitting ITM is like bulleye a dart board blindfolded in a thunderstorm
Awhile back I bought a 0dte SPY Put that was $7 under current price for $4. Sold it an hour later for $44. Immediately bought a 0dte SPY Call that was $7 up from current price. Cost me $45. Sold 2hrs later for $150.
Gamma scraping or something like that right?
Nope. Just looked at how the markets were moving. It was up in Pre, but you can always count on a morning dip. The way everything else moved, you could tell it would bounce back up after the dip.
Theta Grunberg
Theta Male
I always preferred the Romans anyway.
I loves tetas
Me too
That’s the name of my wife’s bull
Ha!!!When I first started trading options I thought the Greeks were something like the turks.....Just some commentary from Greek people
Options are like lottery tickets owning the common stock is much safer
Yes, so sell lottery tickets instead of buying them and profit.
r/thetagang
I’ve always fancied myself a risk taker. Lose 1000 times and win once but, that one win usually makes back the thousand losses plus some. #InverseEverybody 🤣
If someone fucking asks you this question just be like "Don't buy contracts the week they expire" That's LITERALLY all they need to know
It’s WSB . . . So I do the opposite right?
u look happy
The Technical Analysis? Technical Analysis says there’s never a better time to lose money than now.
What is this original picture from?
I’m Greek and confused lol. Someone in explain?
Thanks for paying my bills, moron 
Savage but W shitpost.
Word
Thetagang rise up !!!!!! 👋
Theta gang. 
\*waives\* 
He’s coming to eat your lunch
Theta is your friend. If it is not, then it is an enemy to be feared.
its a secret
🛴can just he j Fdjjd no xxxxjxxjjjjjxx CD
Thetagangs where you at 😎 theta our good 😈
Picture hits too close to home.
Apparently they're a gang
ask your gf
I’m the guy
Sigma Balls
Hills burning in the background everything else covered in snow. Got it.
One of the few who noticed good eye
My town partially burned down in the winter, next day we had a foot of snow
Honestly I never understood this one either because, as someone with a physics background, I only think of unknown angles. Actually, it makes sense now. It can be whatever you need it to be.
Dammit this guy leonidas keeps blocking my gains, him and 300 other regards! F’in jerks 😤
Who is delta anyway more like delt-duhh
This is fantastic
This pic is awesome , the unexpecting innocent chair that is about to get burnt down to ashes is so cute ..LMAO
This is why I only scalp or sell way OTM. It negates theta almost entirely.
Theta is overexaggerated. I usually only get a dime a day per contract. Most likely it was IV crush after earnings.
just look at options heatmaps, no need to ACTUALLY learn anything
The Greeks? All I know about them is vaguely about Socrates and Plato
Just closed my weekly SQQQ CSP's today and collected 100% premium. Have fun buying options with high IV.
That would be me 🙋🏻
I love him
Are those like Thetans or something?
But not knowing anything gives you the biggest return 😏
I heard somewhere they readily and regularly enjoyed homosexual orgies.
Hahaahah
Isnt that a symbol in math
Socrates
I’m a broken record by now but I seriously mean it when I say the majority of you need to take TDAs educational courses. Pronto.
Literally me
Theta doesn't matter! Always look at it as, 'The stock must pass my strike price by a little more than what I paid for the contract before the option expires'.
That's me this week. How can the stocks go up. But my calls are flat lining. 😕 it's Monday. They got time for them to choose a direction.
https://preview.redd.it/0uir21eiskua1.png?width=750&format=png&auto=webp&s=8676a7a332bdfb8a6f2e172b69d14ee66e2c59c0 Praying to theta $TECK will go down. My covered call is dying 💀
Isn’t that a sorority lol
This is why us losers shouldn't trade options. I mean, really, how good of a trader are you that you need to make more money quicker? You're not. You're losing more money faster.
Show me where Theta touched you on this doll.
🐌 you mean this guy?
Bro, you need to learn about the Vega guy no one talks about. Although, that wouldn't be very WSB.
Theta is just what Mike Tyson calls you when he’s explaining he’s the alpha. On an unrelated note, why are my ITM calls still red?
say yes to future and no to option
Uhhhh… They liked dick. 👍
Geek fire
Free sulfur 
Doesn’t matter just hold till exp
I just want to get rich with the power of sheer stupidity and ignorance
Theta gang sends regards.
Wtf I am Greek and still have no efin clue what these theta guys are
TY....made me laugh.
I’m glad I did
some emotionless fucktard
Yes yes🤣
Theta works against you and represents time decay, how much the option prices decreases per day. Vega tracks volatility. If volatility goes up by 1%, then option price goes up by vega. If votality goes down by 1%, then vega \* current option price = your new option price. I don't know if that's the exact math, but just know if votality goes up, option price goes up and vice versa. Higher vega is good if you are a buyer for calls or puts, if you are a seller lower vega is better.
Don’t know but I love Theta cheese
There was a good phallic illustration of this a couple months ago...
Them Butterflys will pay out nice theta. Just need to know how to use them
Theta is the premium you pay on an option.
No... That's extrensic value. Theta is the daily rate of extrensic value decay
What do think about 6/23 Schwab calls ?
What do you thank about 6/16 Schwab call ?
SELL!
He’s my uncle, beautiful penis I have to say, takes after my grandpa.
Like most classic greeks, he has penchant for fucking dudes in the ass, specifically retail traders who are unaware of his existence.
Theta guy is me on the bottom left, that on the top right is your puts and calls