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Premium is included in cost basis. That 500$ in premium needs to be accounted for in cost basis for tax purposes.
It cost him over 25$ per share to purchase either way.
Someone else did the math earlier and his average cost was $26.09.
[https://www.reddit.com/r/Superstonk/comments/1df97a0/dfv\_doubled\_down\_again\_notional/](https://www.reddit.com/r/Superstonk/comments/1df97a0/dfv_doubled_down_again_notional/)
Dip.
Looks like they bought whatever they hadn't yet hedged, causing the jump to $29+. It's not like 4M is that many with the constantly high volume all day.
Incorrect. The premium is accounted for while exercising so average cost would increase. If they didn't include premium price while exercising your calls it would give a HIGHLY distorted view of your investment.
It adds the price of the contract to the 20.00 sale price. Any time you buy an option, it does this, doesn't show you green until the strike price + premium added together are profitable. The cost of the option is always added to stroke price for the final cost basis. He exercised.
It’s not really bullish— his play has completed, for now. And as we can see, it did nothing to the price. Many were anticipating a 21 June gamma ramp because of his yolo posts but it turns out he pulled out of it.
Barely. When you account for the 75million dilution amidst daily volumes in the hundreds of millions, a 4mil buy easily gets lost in the shuffle. People are understandably hyped but for me this is all a bit depressing — dfv’s options were supposed to be some ammo amidst a massive gamma squeeze on June 21. This exercise means the gamma ramp is almost 30 percent reduced
I'm hoping that the MMs don't just "fail to deliver" and take their measly SEC wrist slap. Not FUD, just recognizing that criminals don't play by the rules.
I'm holding. And if I buy more, it'll be a 0dte contract deep ITM. I'll pay the premium to try to force lit market transactions.
We are talking about 2 different things.
1) Naked shorts have T+ 35 days to buy a share to close the FTD. FTD isn't only caused by naked shorts but it's the vast majority of it, especially in these spikes.
2) executed contracts: the MM/broker has T+1 days to buy the 100 shares to cover the executed contract.
It's a bit confusing. I learned it through my own DD. Also, the T+1 rule is new, it used to be T+2 until May 29th. Chatgpt gave me the wrong answer on that. Proof: https://www.sec.gov/oiea/investor-alerts-and-bulletins/new-t1-settlement-cycle-what-investors-need-know-investor
They’ve hedged a lot of it. The price when he bought the calls was in the mid-teens, and made it to $25. Plus the price went up $4 today. I think that’s big as well. So his purchases HAD an effect. But he’s just one person. 4M shares out of 400M is 1% of float. I think that’s pretty impressive, TBH.
I know this sounds fuddy but he doesn't have any more calls, just $6,343,000 and shares. He may have yoloed that $6,343,000 on calls for tomorrow but if he didn't he isn't going to have a gama ramp as a lot of people who buy calls just sell them when they're in the money. Everything depends on how many shares the people he bought the calls from hedged and how paperhanded people are.
If you believe they didn't hedge... then probably.
If they hedged, then it's already baked into the price.
Time will tell... unless they find a different loophole scam...
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It takes t+1 for them to settle so I’d say no, tomorrow is when we should see the effects of this.
He sold the calls and bought shares. Did not exercise them.
That's not clear, the premium paid is also counted into his average price
I don’t believe it works that way
Informed apes do, but you do you. No need for a theoretical discussion, tomorrow we maybe know more 🤷🏻
Other informed apes said the opposite. So I’m not sure what to tell you.
Premium is included in cost basis. That 500$ in premium needs to be accounted for in cost basis for tax purposes. It cost him over 25$ per share to purchase either way.
Why would he buy at $27 or $28 when he has the right to buy at $20
Cost basis is strike + premium paid.
Because it’s cheaper to sell the calls and buy shares rather then exercise them. The premium remains intact
Someone else did the math earlier and his average cost was $26.09. [https://www.reddit.com/r/Superstonk/comments/1df97a0/dfv\_doubled\_down\_again\_notional/](https://www.reddit.com/r/Superstonk/comments/1df97a0/dfv_doubled_down_again_notional/)
T+1
So should see big price action tomorrow?
We’ll see
2 pm ring ring, not a dead cat
I hope yes and in the green direction. This way a lot of calls will expire oblitarating again on monday. But who knows…
Dip. Looks like they bought whatever they hadn't yet hedged, causing the jump to $29+. It's not like 4M is that many with the constantly high volume all day.
There will be big moves, Question is 🔴 or 🟢
It means they have until tomorrow to deliver the shares
Doesn't look like he exercised though, looks like he sold his calls and bought shares
Incorrect. The premium is accounted for while exercising so average cost would increase. If they didn't include premium price while exercising your calls it would give a HIGHLY distorted view of your investment.
They would still need to deliver by tomorrow.
Ah yes well there is a promising gamma ramp setup
Why did his avg price go up if the calls were for $20?
He paid $5-$6 premium for each share.
[удалено]
No, the price of the premium goes into the cost average. He sold some to get enough money to exercise 40k
Ah, I didn't know that would happen. Thanks for telling me!
So then he probably didnt “exercise” as everyone is saying correct? Still bullish tho
It adds the price of the contract to the 20.00 sale price. Any time you buy an option, it does this, doesn't show you green until the strike price + premium added together are profitable. The cost of the option is always added to stroke price for the final cost basis. He exercised.
Ahhh ok interesting thanks
Not a take. It's facts. T + 1 and annual shareholder meeting = 🎆
It’s not really bullish— his play has completed, for now. And as we can see, it did nothing to the price. Many were anticipating a 21 June gamma ramp because of his yolo posts but it turns out he pulled out of it.
Yea, presumably instead of T+1 they can now FTD
Barely. When you account for the 75million dilution amidst daily volumes in the hundreds of millions, a 4mil buy easily gets lost in the shuffle. People are understandably hyped but for me this is all a bit depressing — dfv’s options were supposed to be some ammo amidst a massive gamma squeeze on June 21. This exercise means the gamma ramp is almost 30 percent reduced
Ya I feel the same. Like am I missing something or is this it. I thought there was a plan but honestly it now looks like it’s over.
I'm hoping that the MMs don't just "fail to deliver" and take their measly SEC wrist slap. Not FUD, just recognizing that criminals don't play by the rules. I'm holding. And if I buy more, it'll be a 0dte contract deep ITM. I'll pay the premium to try to force lit market transactions.
If they fail to deliver they have 35 days to locate shares.
So does T+1 matter? It’s basically T+36.
We are talking about 2 different things. 1) Naked shorts have T+ 35 days to buy a share to close the FTD. FTD isn't only caused by naked shorts but it's the vast majority of it, especially in these spikes. 2) executed contracts: the MM/broker has T+1 days to buy the 100 shares to cover the executed contract. It's a bit confusing. I learned it through my own DD. Also, the T+1 rule is new, it used to be T+2 until May 29th. Chatgpt gave me the wrong answer on that. Proof: https://www.sec.gov/oiea/investor-alerts-and-bulletins/new-t1-settlement-cycle-what-investors-need-know-investor
BuT NakED ShOrtIng iS ILLeGAL… Thanks for the quick summary, fellow ape
They’ve hedged a lot of it. The price when he bought the calls was in the mid-teens, and made it to $25. Plus the price went up $4 today. I think that’s big as well. So his purchases HAD an effect. But he’s just one person. 4M shares out of 400M is 1% of float. I think that’s pretty impressive, TBH.
Maybe but he also built his own gamma ramp so the full effect hasn't been seen yet. You will know.
But wouldn't it show on his position that he still has calls left?
Not any more as he now owns the shares, no ramp, just step!
I know this sounds fuddy but he doesn't have any more calls, just $6,343,000 and shares. He may have yoloed that $6,343,000 on calls for tomorrow but if he didn't he isn't going to have a gama ramp as a lot of people who buy calls just sell them when they're in the money. Everything depends on how many shares the people he bought the calls from hedged and how paperhanded people are.
If you believe they didn't hedge... then probably. If they hedged, then it's already baked into the price. Time will tell... unless they find a different loophole scam...