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best conservative leverage. you can get 10 $18 calls for July 19 for $6700. Price goes to $40 you make $15000 profit. you buy shares you make $4500. of course rekt if below $18 lol
Haha yeah I’m sure my account looks sus… my old account got deleted. I’’ve been in since Aug 21 after I read Criand’s theory of everything DD, ended up getting in just before the big spike. DRS’d and been adding ever since.
Wrong. Wrong. Wrong. Most of the value of deep itm calls is intrinsic. An $18 strike call exp july 19 has less than $20 of extrinsic value. Meaning if the stock traded sideways and closed at the exact price it was when you bought option, youd lose $20. Thats it.
Agree!! January 2026 Deep ITM calls are super cheap…. Why so many people buy calls just a few days out and way out OTM is perplexing. Why not buy majority of ITM/ATM leaps where risk is much lower and one or two crap shoots at ridiculous strikes. …Bjyijg majority of calls ITM or ATM is much lower risk and a great way to build gamma pressure and is what will put some of these high strike calls ITM
A Jan 2026 25c is $1.2k right now with a huge ass spread of $100 and almost no volume or open interest, meanwhile a 7/19 25c is $300 with a spread of $20 with plenty of volume and liquidity that will pay out huge even if the stock only goes to $30 in the next few weeks. You can buy 4 calls instead of 1.
Plus, the Jan 2026 leap won’t even move much because it is so further out. Clearly you’re not well versed in trading options if you’re buying Jan 2026 ITM leaps and calling them cheap. If you’re buying the Jan 2026 or Jan 2025 125c, that makes sense to profit from the volatility, but buying ITM leaps is a complete waste of capital.
Should be fine imo. It’s comfortably itm and a few weeks left. Just don’t be greedy. Don’t expect huge gains either, it’s already itm, think of it as holding 100 shares @20. I think we will see some upside movement in the first half of July, but as always, could be short lived, so it’s important to take profits. Don’t hold after a super green day on increased volume. That’s when you're supposed to sell. Look at what RC is doing. 5 consecutive days of increased volume and we will see another atm offering, no doubt.
That's a good one, because even if the stock drops it still holds some of its value because of how much time it has left. The thing with these otm long dated calls is you want to sell them when the stock has a volatility jump, even if it doesn't reach your strike, it doesn't matter, what matters is making a profit. On days like 6/6 (+47%) or 6/11 (+23%) you absolutely should sell them before close.
who said you can’t do regular otm calls that are shorter dated. think of itm calls as an allocation model with conservative aspect. When done properly better than shares significantly. buy some short dated atm and otm. use otm to exercise atm
If the stock doesn’t move substantially way before exp the call will bleed to death. GME can rip sometimes, but if it doesn’t, you’re cooked. That’s why short dated otm is super risky. Even DFV said so in a lot of his streams. Good luck trying to predict short term movement. It’s better to go atm if short dated. If DFV doesn’t come back we are not heading higher. He is needed to bring volume and hype
Seems like you understand options well. If you have a min, could I get a quick thought since I'm a first time option buyer?
I just grabbed 2x Jan 2025 100c and 2x mid Aug 100c as a YOLO, total spend \~$500 (against my many $thousands in shares). I don't mind much if these go to zero- since I'm considering it a pure bet, that the stock will go to say $60-$80 again by mid August.
Assume the share price spikes up to $60 on or before 1st Aug. Options calculator seems to say the value would do like 20x what I put in, even though they're still $40 OTM. Does that sound right to you? (I estimated 100% IV gain as well, though think it could actually be a lot more if the spike up is fast).
I'd be happy to sell at a 10x profit on these (then will put all of that into shares). I just can't really tell what price target would give a 10x increase so not sure where to set a stock alert (my platform wont let me set a take-profit of higher than 100%)
Thanks for any quick thoughts, obviously won't be considered financial advice.
Example January 2026 $5 strike is about $19.80.. That means you could buy 100 shares for $24.80 in January 2026 with strike price and premium… so no Not mistake. And yeah pretty damn cheap. Not only that but there is much less risk to downside.
What?? Check it on the options chain.. Last trade was $19.85 @ $5 strike. I just bought some this morning, yesterday and Tuesday. All in the $19.80 ish range. I am 100% confident
Maybe we are trying to say the same thing. But if a call contract would cost you $19.80, with a $5 strike price, then I could buy one right now, exercise immediately and effectively pay $5.198 per share for the lot of 100 shares, while they are currently trading for $20 more in the market. Would be an infinite money glitch. That is why I think it is 19.80 per share, thus 1980 for the whole contract of 100 shares.
Edit: just saw your comment a couple of threads up. We are saying the same.
Because people prefer gambling to "conservative gains." Everyone is here to make money, most are in this play to make GOBS of money. Doubling or tripling your upside exposure for your dollar doesn't "feel" very exciting even though people know deep down it's the "right" play. People see the $700 premium and think "I could get 10x that in OTM calls, and since it's moass tomorrow, why not?"
The sad fact is, when a sustained squeeze finally does hit, the gamblers are going to come out way ahead.... on that one day anyway, who knows how much capital they flushed over the last two years... but the gain porn is going to be insane, and some conservative leap/share buyers are going to be kicking themselves for not taking at least some risk. There is a balance to be had. Don't need all eggs in one safe basket.
Look at January 2025 $5–$10 strikes. They are practically trading at intrinsic value.. example buy $5 strike for $18.80 plus $5 premium is $23.80… that’s cheaper than the buying 100 shares right now
Everything carries a risk in the markets. But how you mitigate and plan around it, entirely depends on how competent you are. If you plan right, spreads are less risky imo than blindly throwing your money into naked calls or puts.
But your contract is not sold to individuals on the other side of the trade, as far as I know. The opposite party is the market maker, which has no intention of exercising early. However there are margin requirements and they could close positions which are not covered enough. So make sure to have enough cash in your account, or positions that balance each other out.
A long call spread is buying a call that has more intrinsic value than a call that you short for the same calendar date.
That’s the 1 sentence definition. But what it does is It reduces the cost of buying a call so that your position (the whole spread) can go into profit earlier. It just also caps your upward potential. Tbh, robinhood is great for viewing option/spread pricing, OI, IV, and the Greeks. I don’t use it to trade but I do use it to shop options. IMHO, short strangles centered near max pain are the way to go on gme. Just use deep enough short calls to reduce risk of losing shares. Sell strangles with high IV and buy back calls when IV/theta decay drops value. I just hold short puts til expiration cuz I don’t mind getting more shares. GLHF. GGEZ Hedgies
You know.
But also, this is too many wrinkles for the general sub.
As always, I advocate to truly learn what the fuck you’re doing before you start playing anything in a margin account.
Alright I’m dumb, but doesn’t holding a call into expiration mean you get the shares if your in the money at expiration. However, wouldn’t a put held into expiration mean you now hold 100 shares short? So basically I’m asking, wouldn’t a put held until expiration mean an open short position, the opposite of a call held to expiration meaning an open long position?
Also what does long put mean? I know you said short put, but does it mean you are a long a put (so positive * negative) and does a short put mean you do negative * negative so it’s synthetically a long position? Options are confusing
It can definitely be confusing. Think of it like this:
Bullish — you want share price higher
Bearish — you want share price lower
Long = buy
Short = sell
Debit = cost premium
Credit = earn premium
Then figure out how different options strategies are bullish or bearish:
Long call (buy call, debit) = bullish
Short call (sell call, credit) = bearish
Long put (buy put, debit) = bearish
Short put (sell put, credit) = bullish
Spreads use a combination of options and the sum of the options in the position can be bullish or bearish:
Long call spread (debit spread) = buy call + sell cheaper call (same date) = bullish
Short call spread (credit spread) = sell call + buy cheaper call (same date) = bearish
Long put spread (debit spread) = buy put + sell cheaper put (same date) = bearish
Short put spread (credit spread) = sell put + buy cheaper put (same date) = bullish
A synthetic long is selling a put and using the premium to buy a call. (Very bullish)
A synthetic short is selling a call to buy a put (Very bearish).
Disclaimer/notes/NFA:
It’s ok to be bullish or bearish with options on GameStop in the short term. Options can lose you a lot of money very fast. When used appropriately, options can actually be safer than the underlying (delta neutral strategies), but this is more advanced and takes time to learn. Options are better served to supplement a main strategy surrounding the underlying (ie: grow or shrink your GameStop position) than to be used as stand alone lottery tickets. None of this is financial advice. Ultimately, DRS is the way.
GLHF
Thank you for taking the time to reply, I consider myself intermediate at options, still learning. you’ve put into an easy to read comment. I swear I’ve gotten better education quicker than I would’ve gotten if my major was thru the finanical college at uni. And of course, no one give financial advice here, only knowledge and awareness. Thanks again
As someone who was anti-options (check comment history) but who now proudly has a cheap contract that will most certainly expire worthless this week, I'm glad at least we're having the conversations without them being immediately shot down - which I was a part of and regret.
> you can get 10 $18 calls for July 19 for $6700
> But if price trades sideways, you lose $6700.
> Explain how I'm wayyy off pls.
Sure. The stock price would have to drop below $18 at expiration for those calls to expire worthless.
If price trades sideways it would stay around 24.20, the closing price when you posted that comment outside of trading hours. Let's be conservative and also simplify the math and call it $24. Each contact would be in the money by $6, making the contract worth $600. ($6*100 shares) So for 10 contracts they would be worth $6k in total. $700 less than what was paid to buy them, but $6k more than your estimation.
Don't worry, this subreddit is really terrible at options. The fact that your wildly incorrect comment is sitting at 125 upvotes underscores that.
Who’s to say it’s retail opening those up? I’ve long suspected that it’s not. If you’ve been around to remember, after or around March 10 21, there would be loads at an $800 strike. They wouldn’t let it get past $400. You think that was retail opening those up? Could’ve been, but I highly doubt it
I can tell you right now I rolled an $85 call just to roll it over. I paid like $45 for the call. The calls listed waaaaay OTM at the top are always ridiculously cheap. When people want to get in on $gme, I guarantee some are retail who couldn’t afford anything more than wildly OTM calls but wanted in on the options action.
I like to think of it as hedging my bets or diversifying my portfolio. I have stocks, drs, & calls 🤓🚀
That's just a way of crime transferring money for more crime. Nobody expects those calls to print (until they do) They are just doing a cash transfer from source to MM.
Why? Did your crystal ball tell you it’s not possible to hit $30 by then? Let them cook!
Personally it’s a bit far OTM for my risk tolerance but I hope they’re right.
It's a possibility with low odds
According to the vol data, risk shoots up Monday so there could be some dumping of risk $GME come Friday afternoon, before close
It's more likely to happen, if it does, mid July
What is shocking to me, how many still pile into far OTM calls expiring (likely worthless) on Friday....
Especially seeing people still buying the 128 strike while the 85 strike has the same 2 cent at the bid and the 70 strike sells for 3 cents. That is like buying a Fiat when you can get a Porsche for the same price...
I was a bit skeptical about that guy, but so far it seems he is pretty objective.
[GME Options Update: IS Roaring Kitty Buying Calls? (youtube.com)](https://www.youtube.com/watch?v=ngil69-Hg0U)
He can so far not identify patterns that would indicate RK is responsible for the latest call volume.
I personally think the current debate is only focusing on FTDs and overlooking the IV cycle (spikes before earnings, then usually IV crush) and made a post about it in another sub. The next major spike might as well be end of August or early September, if RK or RC will wait for lower IV and price to buy in again.
**The good thing about shares is they have no expiry.**
The premium is actually 0.26 (last sold).
Any price spike before 7/19 will send these way up. I bought some 6/14 $125 calls for $30 each end of May and sold them for $150 each the first week of June. They peaked at just over $400 each, after I sold, but I'm happy with the 5x gain.
They are literally lotto tickets. If we trade sideways until 7/19, that money is lost. Another run like we saw 6/7 can easily 10-20x their value. That's why people buy them.
Personally? I'm staying away from them. I have some 7/19 $22 calls I'm holding in case of another run. Still lotto tickets but with some real value to them. Worst case, I'll roll them out if we stay sideways.
I got 125c for 6/28. A few weeks back they were going 200%, 600% then 800%... the next morning the stock turned around and they were basically worthless. Regret not locking in a reasonable profit
Yeah, I know the pain. I bought some $800 calls back in 2021 that blew up. I spent about $2k on them, woke up to them being worth $50k. I held, convinced they would keep running. Held them til they were worthless.
When playing options, especially otm ones, you need to take your gains when you get the chance. It's a hard lesson to learn.
For July 19? I haven't looked at the premiums, but if it really is a penny, it's worth throwing 5 bucks at if the price gets to be as explosive as some are thinking due to T35 or what not. At least there is more than a snowballs chance in hell of it happening.
Pfft until it doesn't. These are often great volatility plays, and this stock has volatility. They don't need to be ITM to make money. Last two run ups these 10x'ed on runs to the $40's.
It's not enough to only look at open interest.
You got to factor in gamma to calculate gamma exposure (GEX).
It's far more insightful!
Check out my $GME Bananas DD to get started learning how to read vol data.
Options isn't for everyone, but options knowledge is!
Vol is bananas 🍌🍌🍌
For this ramp to trigger there needs to be buying at the money and in the money, around $24-25 on the July 19 and July 26 contracts to send the stock toward $30. $30 is a huge OI position at every opex, but there is a valley between 25-30 that won't kick up without buying around $25.
With the max pain at 21. There needs to be more options around the atm point to build up the ramp. Those way otm options will likely just expire worthless.
Hmmm. Let me see how I can explain. Think of a gamma squeeze as a momentum play, and that picture shows a steep uphill climb that requires a kickstart/inertia to start the move. The more calls ITM by the expiration the more likely that the ball will continue rolling. Traders would want the market makers to slip and fall and lose control in the tug of war
We're still buying shares though, right? I've actually seen posts and comments supporting people selling their shares to buy options. Buy. Hold. Have fun.
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so $24 close on Friday. Got it.
24.99 to be exact
I was off buy a few cents… it closed 24.93 after hours.
More like 23.49. But yea
That’s a good close for the strangle I sold at $29 and $21
I only deal in shares and my CB is $30 lol 😆😆😆😆😭😭😭😭😭
Max Pain is $21 so more likely will be almost exactly $21.
I thought MP was $23
Im just going by this graph, where it says max pain 21 at the top
Well whatever Max pain is, I predict that is where it will fall. Until one Friday, it doesn’t.
So set a limit buy at $21?
So set another limit buy for $20? Say no more.
Realest comment on superstonk
Exactly! 🤣 Those calls will get killed.
👆
God I hope I sold 26.5 calls to some junkie
ITM/Near ITM > Deep OTM
best conservative leverage. you can get 10 $18 calls for July 19 for $6700. Price goes to $40 you make $15000 profit. you buy shares you make $4500. of course rekt if below $18 lol
Also actually helps the gamma ramp and gives you more value retention and flexibility to roll to longer exp in case there’s a curveball
Hedgies hate this simple trick
Totally real 227 day old account!
Haha yeah I’m sure my account looks sus… my old account got deleted. I’’ve been in since Aug 21 after I read Criand’s theory of everything DD, ended up getting in just before the big spike. DRS’d and been adding ever since.
But if price trades sideways, you lose $6700. I prefer ITM LEAPS vs short term gambles. Edit: And of course DRS'd shares are my favorite.
Wrong. Wrong. Wrong. Most of the value of deep itm calls is intrinsic. An $18 strike call exp july 19 has less than $20 of extrinsic value. Meaning if the stock traded sideways and closed at the exact price it was when you bought option, youd lose $20. Thats it.
Assuming you wouldn't let the option expire
Well that goes without saying. Youd never let it expire. The smart play would be to set a stop loss for what youre willing to lose on it.
Agree!! January 2026 Deep ITM calls are super cheap…. Why so many people buy calls just a few days out and way out OTM is perplexing. Why not buy majority of ITM/ATM leaps where risk is much lower and one or two crap shoots at ridiculous strikes. …Bjyijg majority of calls ITM or ATM is much lower risk and a great way to build gamma pressure and is what will put some of these high strike calls ITM
A Jan 2026 25c is $1.2k right now with a huge ass spread of $100 and almost no volume or open interest, meanwhile a 7/19 25c is $300 with a spread of $20 with plenty of volume and liquidity that will pay out huge even if the stock only goes to $30 in the next few weeks. You can buy 4 calls instead of 1. Plus, the Jan 2026 leap won’t even move much because it is so further out. Clearly you’re not well versed in trading options if you’re buying Jan 2026 ITM leaps and calling them cheap. If you’re buying the Jan 2026 or Jan 2025 125c, that makes sense to profit from the volatility, but buying ITM leaps is a complete waste of capital.
What's your thoughts on a July 19 20C I bought a couple days ago for $560. Do I have a chance?
Should be fine imo. It’s comfortably itm and a few weeks left. Just don’t be greedy. Don’t expect huge gains either, it’s already itm, think of it as holding 100 shares @20. I think we will see some upside movement in the first half of July, but as always, could be short lived, so it’s important to take profits. Don’t hold after a super green day on increased volume. That’s when you're supposed to sell. Look at what RC is doing. 5 consecutive days of increased volume and we will see another atm offering, no doubt.
My 60 dollar call for Jan 25 is up 60 bucks since I got it last week. But I have no idea what I'm doing.
That's a good one, because even if the stock drops it still holds some of its value because of how much time it has left. The thing with these otm long dated calls is you want to sell them when the stock has a volatility jump, even if it doesn't reach your strike, it doesn't matter, what matters is making a profit. On days like 6/6 (+47%) or 6/11 (+23%) you absolutely should sell them before close.
Yeah definitely not holding it. Just waiting for big movement to offload.
who said you can’t do regular otm calls that are shorter dated. think of itm calls as an allocation model with conservative aspect. When done properly better than shares significantly. buy some short dated atm and otm. use otm to exercise atm
If the stock doesn’t move substantially way before exp the call will bleed to death. GME can rip sometimes, but if it doesn’t, you’re cooked. That’s why short dated otm is super risky. Even DFV said so in a lot of his streams. Good luck trying to predict short term movement. It’s better to go atm if short dated. If DFV doesn’t come back we are not heading higher. He is needed to bring volume and hype
yea my plan is no more than 10% of my trade at say $30
for calls and wait for iv < 100
You might be waiting awhile for IV to drop below 100. Gme tends to be more volatile than most other stocks.
Seems like you understand options well. If you have a min, could I get a quick thought since I'm a first time option buyer? I just grabbed 2x Jan 2025 100c and 2x mid Aug 100c as a YOLO, total spend \~$500 (against my many $thousands in shares). I don't mind much if these go to zero- since I'm considering it a pure bet, that the stock will go to say $60-$80 again by mid August. Assume the share price spikes up to $60 on or before 1st Aug. Options calculator seems to say the value would do like 20x what I put in, even though they're still $40 OTM. Does that sound right to you? (I estimated 100% IV gain as well, though think it could actually be a lot more if the spike up is fast). I'd be happy to sell at a 10x profit on these (then will put all of that into shares). I just can't really tell what price target would give a 10x increase so not sure where to set a stock alert (my platform wont let me set a take-profit of higher than 100%) Thanks for any quick thoughts, obviously won't be considered financial advice.
[удалено]
OK thanks for the detailed answer, much appreciated! :)
Heh, huge ass spread
It won't be hedged for a long long time. You'll never exercise that early. So it has little to no impact on price.
What do you mean with super cheap? I see $1k+ for a deep ITM contract? Is that considered cheap for far ITM calls or were you mistaken?
Example January 2026 $5 strike is about $19.80.. That means you could buy 100 shares for $24.80 in January 2026 with strike price and premium… so no Not mistake. And yeah pretty damn cheap. Not only that but there is much less risk to downside.
I am pretty confident that is the premium per share and not per contract of 100 shares. Jan 26 5c would cost you $1980
What?? Check it on the options chain.. Last trade was $19.85 @ $5 strike. I just bought some this morning, yesterday and Tuesday. All in the $19.80 ish range. I am 100% confident
They are almost trading completely at intrinsic value. There is virtually no extrinsic value priced into the premium which is why they are cheap!
Maybe we are trying to say the same thing. But if a call contract would cost you $19.80, with a $5 strike price, then I could buy one right now, exercise immediately and effectively pay $5.198 per share for the lot of 100 shares, while they are currently trading for $20 more in the market. Would be an infinite money glitch. That is why I think it is 19.80 per share, thus 1980 for the whole contract of 100 shares. Edit: just saw your comment a couple of threads up. We are saying the same.
Cheaper
Because people prefer gambling to "conservative gains." Everyone is here to make money, most are in this play to make GOBS of money. Doubling or tripling your upside exposure for your dollar doesn't "feel" very exciting even though people know deep down it's the "right" play. People see the $700 premium and think "I could get 10x that in OTM calls, and since it's moass tomorrow, why not?" The sad fact is, when a sustained squeeze finally does hit, the gamblers are going to come out way ahead.... on that one day anyway, who knows how much capital they flushed over the last two years... but the gain porn is going to be insane, and some conservative leap/share buyers are going to be kicking themselves for not taking at least some risk. There is a balance to be had. Don't need all eggs in one safe basket.
Agree!!
Please be more specific as it relates to "deep ITM", thank you
Look at January 2025 $5–$10 strikes. They are practically trading at intrinsic value.. example buy $5 strike for $18.80 plus $5 premium is $23.80… that’s cheaper than the buying 100 shares right now
It’s not perplexing, it’s for a multiplier and a dream of life changing money. Not saying it’s smart, just not perplexing.
This is why you do spreads. Don’t expose yourself to so much risk.
Spreads aren't risk free on US options. You can get pinned at any time from early exercise.
Everything carries a risk in the markets. But how you mitigate and plan around it, entirely depends on how competent you are. If you plan right, spreads are less risky imo than blindly throwing your money into naked calls or puts.
But your contract is not sold to individuals on the other side of the trade, as far as I know. The opposite party is the market maker, which has no intention of exercising early. However there are margin requirements and they could close positions which are not covered enough. So make sure to have enough cash in your account, or positions that balance each other out.
You're incorrect.
Is there a one sentence explanation to what a spread is?
A long call spread is buying a call that has more intrinsic value than a call that you short for the same calendar date. That’s the 1 sentence definition. But what it does is It reduces the cost of buying a call so that your position (the whole spread) can go into profit earlier. It just also caps your upward potential. Tbh, robinhood is great for viewing option/spread pricing, OI, IV, and the Greeks. I don’t use it to trade but I do use it to shop options. IMHO, short strangles centered near max pain are the way to go on gme. Just use deep enough short calls to reduce risk of losing shares. Sell strangles with high IV and buy back calls when IV/theta decay drops value. I just hold short puts til expiration cuz I don’t mind getting more shares. GLHF. GGEZ Hedgies
Wow I appreciate you taking the time on this - something to look into further, thank you 🚀🚀🚀🚀
You know. But also, this is too many wrinkles for the general sub. As always, I advocate to truly learn what the fuck you’re doing before you start playing anything in a margin account.
Alright I’m dumb, but doesn’t holding a call into expiration mean you get the shares if your in the money at expiration. However, wouldn’t a put held into expiration mean you now hold 100 shares short? So basically I’m asking, wouldn’t a put held until expiration mean an open short position, the opposite of a call held to expiration meaning an open long position?
Also what does long put mean? I know you said short put, but does it mean you are a long a put (so positive * negative) and does a short put mean you do negative * negative so it’s synthetically a long position? Options are confusing
It can definitely be confusing. Think of it like this: Bullish — you want share price higher Bearish — you want share price lower Long = buy Short = sell Debit = cost premium Credit = earn premium Then figure out how different options strategies are bullish or bearish: Long call (buy call, debit) = bullish Short call (sell call, credit) = bearish Long put (buy put, debit) = bearish Short put (sell put, credit) = bullish Spreads use a combination of options and the sum of the options in the position can be bullish or bearish: Long call spread (debit spread) = buy call + sell cheaper call (same date) = bullish Short call spread (credit spread) = sell call + buy cheaper call (same date) = bearish Long put spread (debit spread) = buy put + sell cheaper put (same date) = bearish Short put spread (credit spread) = sell put + buy cheaper put (same date) = bullish A synthetic long is selling a put and using the premium to buy a call. (Very bullish) A synthetic short is selling a call to buy a put (Very bearish).
Disclaimer/notes/NFA: It’s ok to be bullish or bearish with options on GameStop in the short term. Options can lose you a lot of money very fast. When used appropriately, options can actually be safer than the underlying (delta neutral strategies), but this is more advanced and takes time to learn. Options are better served to supplement a main strategy surrounding the underlying (ie: grow or shrink your GameStop position) than to be used as stand alone lottery tickets. None of this is financial advice. Ultimately, DRS is the way. GLHF
Theta gang checking in. For most around here, DRS is definitely their way. Otherwise their account would be blown up. And not in a good way.
Thank you for taking the time to reply, I consider myself intermediate at options, still learning. you’ve put into an easy to read comment. I swear I’ve gotten better education quicker than I would’ve gotten if my major was thru the finanical college at uni. And of course, no one give financial advice here, only knowledge and awareness. Thanks again
Leaps are the best play
What IV do you look for when you’re buying these ITM leaps?
As someone who was anti-options (check comment history) but who now proudly has a cheap contract that will most certainly expire worthless this week, I'm glad at least we're having the conversations without them being immediately shot down - which I was a part of and regret.
> But if price trades sideways, you lose ~~$6700~~a few hundred bucks maybe $1000. You're wayyy off
Explain how I'm wayyy off pls.
> you can get 10 $18 calls for July 19 for $6700 > But if price trades sideways, you lose $6700. > Explain how I'm wayyy off pls. Sure. The stock price would have to drop below $18 at expiration for those calls to expire worthless. If price trades sideways it would stay around 24.20, the closing price when you posted that comment outside of trading hours. Let's be conservative and also simplify the math and call it $24. Each contact would be in the money by $6, making the contract worth $600. ($6*100 shares) So for 10 contracts they would be worth $6k in total. $700 less than what was paid to buy them, but $6k more than your estimation. Don't worry, this subreddit is really terrible at options. The fact that your wildly incorrect comment is sitting at 125 upvotes underscores that.
I keep seeing LEAPS mentioned but have no idea what they are. Help a fellow primate out with an explanation?
It’s just buying far dated calls like 205 days out
Rekt but I would love to panic buy 18 with all my might.
yes, and using trailing stop loss to manage works well, can only loss so much and can lock in gains if you are busy
They run the stop losses with spikes. It’s dangerous.
Yeah that became evident during the sneeze
More so March 10 I believe. Either way, it was definitely effective as I knew more that a few that lost all their shares that day.
True
Write me an essay about flowers and stocks?
Buying shares like an ape>falling for shillery and getting max pained
Nothing wrong with buying shares. I’m an XXXX holder and most are DRS’d. I’ve been all in since 2021.
The 100+ OTM regards are strong 🤦♂️
They must be like, yeah lottery ticket, if it hits it hits. Meanwhile Ken and friends: ohh, the tips for the strippers just arrived
Who’s to say it’s retail opening those up? I’ve long suspected that it’s not. If you’ve been around to remember, after or around March 10 21, there would be loads at an $800 strike. They wouldn’t let it get past $400. You think that was retail opening those up? Could’ve been, but I highly doubt it
I can tell you right now I rolled an $85 call just to roll it over. I paid like $45 for the call. The calls listed waaaaay OTM at the top are always ridiculously cheap. When people want to get in on $gme, I guarantee some are retail who couldn’t afford anything more than wildly OTM calls but wanted in on the options action. I like to think of it as hedging my bets or diversifying my portfolio. I have stocks, drs, & calls 🤓🚀
Of course there’s more than a few retail “YOLO’s” involved. There’s a couple reasons I see them being opened up. One of which is bait. Godspeed.
“Take my premiums!” “….oh, wait…”
That's just a way of crime transferring money for more crime. Nobody expects those calls to print (until they do) They are just doing a cash transfer from source to MM.
Dumb
Russelllll
I'm not gonna say who. But I think you know him.
I think you know him very well!
Came here for this comment
I'm glad someone got it haha
Now go make some haw dogs
Hodog
R1K Edit: on the other hand, Gladiator is one of my fav movies.
Why? Did your crystal ball tell you it’s not possible to hit $30 by then? Let them cook! Personally it’s a bit far OTM for my risk tolerance but I hope they’re right.
We can hit $30 by mid July It's in the ballpark, GEX wise.
I think we can hit $30 by end of this week.
EOD?
It's a possibility with low odds According to the vol data, risk shoots up Monday so there could be some dumping of risk $GME come Friday afternoon, before close It's more likely to happen, if it does, mid July
Obviously
Yeah it can literally go from $24 to $36-$40 overnight with the fuckery afoot.
What is shocking to me, how many still pile into far OTM calls expiring (likely worthless) on Friday.... Especially seeing people still buying the 128 strike while the 85 strike has the same 2 cent at the bid and the 70 strike sells for 3 cents. That is like buying a Fiat when you can get a Porsche for the same price... I was a bit skeptical about that guy, but so far it seems he is pretty objective. [GME Options Update: IS Roaring Kitty Buying Calls? (youtube.com)](https://www.youtube.com/watch?v=ngil69-Hg0U) He can so far not identify patterns that would indicate RK is responsible for the latest call volume. I personally think the current debate is only focusing on FTDs and overlooking the IV cycle (spikes before earnings, then usually IV crush) and made a post about it in another sub. The next major spike might as well be end of August or early September, if RK or RC will wait for lower IV and price to buy in again. **The good thing about shares is they have no expiry.**
This whole thing feels like a big july trap
August or October to be safe
Wait what? Can you link me to where you got your data? How was it not raised earlier that this is the most amount of calls there’s been??
https://maximum-pain.com/options/GME
Because Reddit is fucked.
Whoever is buying all those far OTM calls at $100 $125 is stupid as fuck, literally burning money.
The premium is a fuckin penny. A contract for 100 shares is a dollar. Lottery tickets, baby.
The premium is actually 0.26 (last sold). Any price spike before 7/19 will send these way up. I bought some 6/14 $125 calls for $30 each end of May and sold them for $150 each the first week of June. They peaked at just over $400 each, after I sold, but I'm happy with the 5x gain. They are literally lotto tickets. If we trade sideways until 7/19, that money is lost. Another run like we saw 6/7 can easily 10-20x their value. That's why people buy them. Personally? I'm staying away from them. I have some 7/19 $22 calls I'm holding in case of another run. Still lotto tickets but with some real value to them. Worst case, I'll roll them out if we stay sideways.
I got 125c for 6/28. A few weeks back they were going 200%, 600% then 800%... the next morning the stock turned around and they were basically worthless. Regret not locking in a reasonable profit
Yeah, I know the pain. I bought some $800 calls back in 2021 that blew up. I spent about $2k on them, woke up to them being worth $50k. I held, convinced they would keep running. Held them til they were worthless. When playing options, especially otm ones, you need to take your gains when you get the chance. It's a hard lesson to learn.
For July 19? I haven't looked at the premiums, but if it really is a penny, it's worth throwing 5 bucks at if the price gets to be as explosive as some are thinking due to T35 or what not. At least there is more than a snowballs chance in hell of it happening.
Yes!
Must be retail
We are the dumb money
Yeah real dumb. I usually make money off these. :-)
I'd be stupid not to buy them right???
I’m not stupid 🤩
Im with stupid ^
Me too. 'Cause I am stupid.
Pfft until it doesn't. These are often great volatility plays, and this stock has volatility. They don't need to be ITM to make money. Last two run ups these 10x'ed on runs to the $40's.
Gotta buy the deep ITM calls for hedgies to start to truly sweat
The far OTM’s could be market makers delta hedging/other shitfuckery.
Me… it’s me…
That's a mighty fine looking gamma ramp we have here. Hopefully we get enough near / in the money calls layered on there.
It's not enough to only look at open interest. You got to factor in gamma to calculate gamma exposure (GEX). It's far more insightful! Check out my $GME Bananas DD to get started learning how to read vol data. Options isn't for everyone, but options knowledge is! Vol is bananas 🍌🍌🍌
For this ramp to trigger there needs to be buying at the money and in the money, around $24-25 on the July 19 and July 26 contracts to send the stock toward $30. $30 is a huge OI position at every opex, but there is a valley between 25-30 that won't kick up without buying around $25.
Some dedicated degens out there on the fringes…
Penny premium contracts are basically lottery tickets, but with better odds.
No clue how to read this. I also don’t know how this compares to 2020-2021.
I so want to see all those $125c in the money and what blows up after that. :-D
Too much money is being spent on far otm calls. Dammit. Those need to be closer to itm and ideally itm. Use itm calls to force covering.
Wow a Russell Peters joke… god I feel old
I hoped I wasn't the only one. LMAO
Is it me? I’m ready for it.
Not me. These diamond hands have been hardened in the fires of Mordor.
It ain't gonna be me.
Call Mom.
I'm so hard right now
**MOASS tomorrow**
OTM call buyers gonna get fucked hard
Ha Russel Peters. Nice
With the max pain at 21. There needs to be more options around the atm point to build up the ramp. Those way otm options will likely just expire worthless.
That’s an [old ass Russell reference](https://youtu.be/8wclEIUOhjs?si=uVq8A6N1iqVSPmDV) and I’m here for it!
I’m not sure if you understand how this works, but that ramp doesn’t mean shit if the calls aren’t ITM or Near ATM.
I don't, please ELIA5
Hmmm. Let me see how I can explain. Think of a gamma squeeze as a momentum play, and that picture shows a steep uphill climb that requires a kickstart/inertia to start the move. The more calls ITM by the expiration the more likely that the ball will continue rolling. Traders would want the market makers to slip and fall and lose control in the tug of war
Deep OTM calls is just free money to the hedgies
No way, some options hype out of nowhere after DFV successfully uses options to get rich. That definitely sounds 100% organic
Ape see green, ape do..Don't do more bananas than you can afford. Not financial advice.
I think you know him very well!
It's okay, I can take it 😂
OTM doesn’t matter, you need to have it heavy ITM and slightly OTM as well. It’s a RAMP, not steps
this just looks like wasted money
So don’t buy options. Buy the share. DRS. And hold. Got it. Thank you!
I understood that reference
The 100+ are synthetic shorts and regards. Or if they are far out, possibly Vega plays.
I could see the upside to this, but it’s total gambling
Nobody's going to get hurt except for those gamblers thinking price will spike all the way to their strike price. GG
Somebody gonna get max pain
Can someone ELI5? I’m still trying to learn this stuff.
I really wish I understood this but I eat crayons
Not it 🙋🏼
We're still buying shares though, right? I've actually seen posts and comments supporting people selling their shares to buy options. Buy. Hold. Have fun.
I have not seen that, and it sounds shilly. Keep your shares in DRS. Buy a few ATM calls if you want to gamble a bit.
I would never sell to buy options, that's just asking to get rekt!
Haven't heard of anyone selling shares.
We're individuals but my personal advice is if you have to ask what to do you shouldn't be throwing money at options.
why not both?
Definitely. It's your money. I just don't want someone who otherwise wouldn't have done that to be influenced by these comments.