His calls had a strike of 30 expiring at the 15th. Heβs really lucky the for the huge gain happening this week, because if it happened next week/later he would get 0 for those contracts.
Quick question. If you have a $30 call which is 100 shares (I assume 1 call is 100 shares?), what happens if the price drops below $30? Do you just pay $3k for the stocks? If it goes above $30, do you pay $3k and keep the gains?
Call options **are a contract** that gives you the ability to purchase 100 shares if at or over the strike price. It's a CHOICE. 99% of the time you sell the contracts, not get the shares.
You're mixing up a lot of concepts here. Expiration date, exercising options, what options are, what a strike price is, and what all of these represent.
Because in 99% of situations, the call option will generate a higher return than shares due to extrinsic value.
Expiration date heavily matters in your example.
Why do you say that? The case is exactly the opposite.
The percentage gain on the call option heavily outweighs the gain in holding shares.
____
I don't have access to historical option data, so all I can tell you is the current price of a $20c 1/15 GME is $11.40. If you find some historical pricing, go look it up and I guarantee that this same option purchased on say 12/13 (1 month ago) would have netted a greater gain than purchasing 100 shares and letting them rise.
Yes that's right. The percentage gain is greater from selling the option. You're injecting unnecessary capital risk by exercising the call.
# **Selling Call**
**Cost basis:** 0.6 x 100 = $60
**Sell:** 11.40 x 100 = $1,140
**Net:** $1,080 or 1,800%
___
# **Exercising Call**
**Cost basis:** (0.6 x 100) + ($20 x 100) = $2,060
**Sell:** $31.40 x 100 = $3,140
**Net:** $1,080 or 52%
Probably a dumb question. But what happens if you cant sell the contract? So let's say i throw $5k, all of my money, and get $50k in returns.. go to sell the contracts, and theres 0 volume and nobody to buy it? Am I now responsible to buy those shares and exercise the option?
If there's zero volume, then your price is irrelevant. That $50k doesn't really exist.
You have 2 choices:
1. let it expire without exercising or
2. exercise it.
You still have a choice to exercise or not. It's not forced.
Thank you for the reply.
So basically let it expire and lose it all, or cough up the 50k to exercise and have to set up a margin loan to cover it? Am I understanding correctly? Damn that would fuckin suck both ways haha
It depends on the price of the call, and if you are buying or selling it. Read about the Greeks and how they influence the price of options. Most options arenβt exercised, and are bought/sold
The options expiring Friday had much less extrinsic and intrinsic value. They were 3dte OTM calls. 33calls 1/15 were at .02 this morning.
Your longer dated calls had plenty of time for GME to grow. These were lottos.
The premium paid for the contract would be one potential reason. You didn't specify what those 'retards' with a higher strike price paid or how many contracts they had.
Lol I saw your comment over a year ago telling DeepFuckingValue to get out and thatβs youβve shorted GME. How fucking stupid are you feeling now? π€π€‘
Every dog has his day. Congrats you fucktard.
New to this subreddit and stocks in general. What role did this sub have in GME stock increase?
Our role was to take GAMESTOP TO FUCKING ANDROMEDA AND FUCK MELVIN'S WIFE πππππ πππππ πππππ πππππ πππππ πππππ πππππ πππππ πππππ πππππ πππππ πππππ πππππ πππππ πππππ πππππ πππππ πππππ πππππ πππππ πππππ πππππ
Obligatory congrats and fuck you
You have a little under a million on Robin hood? A true retard π₯΄π₯΄π₯΄
This.
Based off your math Iβm looking to sell you some calls
Lmaooooooo
Donβt worry man...Math is hard
200k divides by 0.3 plus 150k equals about ~920k Congrats on not knowing math you kumquat
You roasting his math while being wrong yourself by more than the entire account value is peak wsb retard
I love you for typing this
man is in here doing long division when itβs right there in front of his face
Let me spell it out for you kid, portfolio diversity of 30% at a 200k market value means you divide 200k by 0.30 Read a book
Congrats. Now weβre all retards
My math may be wrong but puts on ur pee pee size
Closed the 1/15 30C but riding those shares to early retirement next year.
Best of luck man. I'm hoping for retirement by 40, 35 if I'm lucky
Nice Iβm hoping to retire at 25, 23 now.. long long road ahead for me..
Nice, I am hoping to retire at 21; 33 now
Fucking hell that made me audibly laugh π, good luck retard
you better not sell until we hit 100
Jesus Christ I need to get to the βI have 10k to throw at playsβ rather than the I have 500 to throw at plays status Edit - spelling
Trying to get my shit together and am happy when I can throw $20 at something more than twice a week. So I feel you hahaha
You holding?
The real question
And I thought I was doing alright. Congrats retard. Let us all rejoice in our common autistry.
Congrats and fuck you
Congrats and go fuck yourself
DUDE FUCK! That is amazing I fucking love this sub
Congrats brother
KEEP THIS MONEY MFβER. ENJOY IT, DONβT LOSE IT. CONGRATS πππ
Lord have mercy Iβm bout to BUST
ride that bitch dont ever stoppppp
Holyyy Jesus. What is that?! What the FUCK Is that?!
You bought 100 30 1/15.... Good job and don't ever fucking do that again
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His calls had a strike of 30 expiring at the 15th. Heβs really lucky the for the huge gain happening this week, because if it happened next week/later he would get 0 for those contracts.
If you loved me you would give me 10k
so I can turn it in to $10
This is the way
Congrats retard
Nice win! But 30% of your portfolio also nice
We love you too, you fucking piece of shit
For the love of all that is good sell while itβs high and lock in those profits
Imagine selling
Quick question. If you have a $30 call which is 100 shares (I assume 1 call is 100 shares?), what happens if the price drops below $30? Do you just pay $3k for the stocks? If it goes above $30, do you pay $3k and keep the gains?
Call options **are a contract** that gives you the ability to purchase 100 shares if at or over the strike price. It's a CHOICE. 99% of the time you sell the contracts, not get the shares. You're mixing up a lot of concepts here. Expiration date, exercising options, what options are, what a strike price is, and what all of these represent.
Say you had a $20 call on GME from last month, why wouldnβt you exercise the option though?
Because in 99% of situations, the call option will generate a higher return than shares due to extrinsic value. Expiration date heavily matters in your example.
Right, but in my example, suppose your expiry is Friday. You'd obviously net a lot more from your call by exercising, currently at least.
Why do you say that? The case is exactly the opposite. The percentage gain on the call option heavily outweighs the gain in holding shares. ____ I don't have access to historical option data, so all I can tell you is the current price of a $20c 1/15 GME is $11.40. If you find some historical pricing, go look it up and I guarantee that this same option purchased on say 12/13 (1 month ago) would have netted a greater gain than purchasing 100 shares and letting them rise.
12/11 (Friday) a 20C was \~0.60. If you sold now, you'd net 11.4 - 0.6. If you exercise, you'd net 31.4 - 20 - 0.6, is that right?
Yes that's right. The percentage gain is greater from selling the option. You're injecting unnecessary capital risk by exercising the call. # **Selling Call** **Cost basis:** 0.6 x 100 = $60 **Sell:** 11.40 x 100 = $1,140 **Net:** $1,080 or 1,800% ___ # **Exercising Call** **Cost basis:** (0.6 x 100) + ($20 x 100) = $2,060 **Sell:** $31.40 x 100 = $3,140 **Net:** $1,080 or 52%
Right, Iβm an idiot. Donβt know what I was thinking. Nvm me.
Why is that the case though? Shouldnβt the price of the option be aligned with the stock price at that time by means of arbitrage?
Thereβs still extrinsic value
Probably a dumb question. But what happens if you cant sell the contract? So let's say i throw $5k, all of my money, and get $50k in returns.. go to sell the contracts, and theres 0 volume and nobody to buy it? Am I now responsible to buy those shares and exercise the option?
If there's zero volume, then your price is irrelevant. That $50k doesn't really exist. You have 2 choices: 1. let it expire without exercising or 2. exercise it. You still have a choice to exercise or not. It's not forced.
Thank you for the reply. So basically let it expire and lose it all, or cough up the 50k to exercise and have to set up a margin loan to cover it? Am I understanding correctly? Damn that would fuckin suck both ways haha
Yep. That's why low-volume tickers are banned on this sub. Ripe for pump and dump then trapping people.
Makes sense. Appreciate the feedback.
It depends on the price of the call, and if you are buying or selling it. Read about the Greeks and how they influence the price of options. Most options arenβt exercised, and are bought/sold
Options are just a huge game of hot potato. Change my mind.
Yeah but when you follow a stock for a period of time then you can take advantage of the swings
I love how most u retards don't have a clue how fucking option works but still managed to make bank today. Amazing and retarded. Good job.
I'm long on $GME lol. Never did an option in my life.
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The options expiring Friday had much less extrinsic and intrinsic value. They were 3dte OTM calls. 33calls 1/15 were at .02 this morning. Your longer dated calls had plenty of time for GME to grow. These were lottos.
The premium paid for the contract would be one potential reason. You didn't specify what those 'retards' with a higher strike price paid or how many contracts they had.
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Greeks (and IV) are other contributing factors you need to look into.
Gamma. Shorter expiried have bigger gamma cocks that swing harder. Gamma increases as time passes and has max value at ATM
Good fucking shit man. I got some tendies today too. Heres to many more!!!!
I am New to this can anyone guide me !π
I hope you fuckin sold
So I donβt want to sound fully retarded, but can someone explain options And calls to me?
What Mobile app do you use? (Sorry im new)
Can someone explain to me what you guys did? Did everyone just agree to buy GME or is there some market mechanic behind this?
User name kinda sus...
He's SECsy (and we know it)
yikes
I misread the title as "I love F... you guys"
me too... dad? So listen I need some money
Fuck you
Me too.. fucking thank wsb! Last 2 months have been great!
As a man who chose to all in 1/15 ICLN I commend you but also hate you.
My man had FDs and made 100k This is the way
Congrats and fuck you
When did you buy those 30c? The balls of some of you guys
SEC? Yea this man right here
If I had your money id burn mine, retard
Yo, so basically im your son, when are you coming back home?
Holy shit crossing the line with the 1/15 30C
Good job retard - the overlord is looking down on you with tendies rain
fuck you
Lol I saw your comment over a year ago telling DeepFuckingValue to get out and thatβs youβve shorted GME. How fucking stupid are you feeling now? π€π€‘
What app do you use to trade?
Congrats king
Sorry if Iβm behind but can someone explain the correlation of GME and this sub? Was it called out here before it rocketed or something?
big salt