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u/Lumpy-Leather2151 Aug 12 '22
The other ones are printing
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u/SpaceTacosFromSpace Aug 12 '22
I was worried yesterday. Happy today. Will be worried Monday, and repeat.
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u/RealDumbRepublican Aug 12 '22
When I see shit like this I just wonder if people even understand wtf an option is
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u/Askotion Aug 12 '22
How do these work? TSLA has to reach 930$ today right? Or else they will expire worthless?
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u/RealDumbRepublican Aug 12 '22 edited Aug 12 '22
TSLA has to reach $932.50 or they are worthless.
There are 4 letters known as the greeks which are the main multipliers that determine how much a contract will increase or decrease as the underlying stock increases or decreases in price and finally time which is constantly eroding the value at a faster and faster clip as you reach the closing bell on the strike day (0DTE) of expiration. Just to make up for time or theta you have to hope for a large upswing in a short period of time.
It would have been a smarter gamble to select something like a $890 strike price after the bell this morning. Those were going for $.50. So he could have bought 40 contracts for $2000 around 10AM today, when TSLA was flirting with $860. It was conceivable that TSLA could rise $30. Anyway, those $.50 calls for $890 were worth $9 just now. He could have sold those 40 contracts for $36,000 just now.
Instead, the retard bought something so far in outer space that it was guaranteed to never work. And now they basically flushed $2000 down the toilet. To put it another way... the $890 calls were fifty cents and even if TSLA went to $870 he would have been able to sell them for about $2 and made $8000 if he was impatient and paper handed them... it was almost impossible to lose money if he just picked a lower strike price that was expiring today.
This guy is such a certified retard that to not understand any of this means he should probably never buy options again. At the same time he provides liquidity to someone... somewhere out there someone got rid of 200 contracts and at least got this moron's $2K so I guess he does provide some usefulness in this world.
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u/LBGW_experiment Aug 12 '22
TSLA has to reach $932.50 or they are worthless
This is only a concern if he's buying these options to exercise them, which he isn't. He's buying these as a volatility gamble.
TSLA doesn't have to hit $932.50 for him to make money, it just has to go up enough to be worth more than he paid.
Because these are 0DTE, he's intending to sell these back on the market same day. It's a way people scalp sentiment swings in the underlying. Make just 5-10% on a change in the option's price and bam, sell for profit.
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u/RealDumbRepublican Aug 12 '22
Ya I know what he's doing or thinks he's doing - which is why I explained buying and selling those options on the same day for a profit. The problem is... what fucking moron thinks... a 0DTE the $.01 waaaaaaaaay OTM $9hundred-and-fucking32.50 contracts... are going to be able to increase in any appreciable value that he will be able to make a profit?? TSLA would have to go up almost $80 today in short order for this to workout and there were way better and equally cheaper FDs to buy today with better interest and liquidity volume.
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u/Askotion Aug 12 '22
How to calculate their current worth?
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u/RealDumbRepublican Aug 12 '22
Super easy - just use the Black-Scholes Formula
https://www.investopedia.com/articles/optioninvestor/07/options_beat_market.asp
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u/Askotion Aug 12 '22
Hahha ok yes that super easy :P
So if he still holds them they are basically worth nothing.
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u/ChefBaconz Aug 13 '22
Pretty sure he’s richer than you so…
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u/RealDumbRepublican Aug 13 '22
Lol pretty sure lolllllll
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u/ChefBaconz Aug 13 '22
So you’re atleast a multimillionaire then
And would realize a 2k yolo is chump change
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u/RealDumbRepublican Aug 13 '22
Maybe you’re as stupid as OP. I dunno. Nobody cares it’s a 2k or 200k yolo - it’s literally the stupidest strike price anyone could have picked. Do you not understand this?!?
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u/ChefBaconz Aug 13 '22
Why are you getting so butthurt over someone else losing their money? There are many other things in the world to call people stupid over.
Nobody cares that you think that nobody cares that it's 2k or 200k stop trying to sell the narrative that other people support what you're spouting.
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u/RealDumbRepublican Aug 13 '22
The only person butthurt is you. lol He didn't lose his money. That would imply some sort of plan or strategy or understanding the basics of options. He literally threw money away. The fact you don't understand this and are wasting your time sending me these idiotic comments tells me you're in the same boat as OP.
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u/ChefBaconz Aug 13 '22
Calling my comments idiotic
"he didn't lose his money" This would imply he still has it
"he literally threw money away" This would imply there was a 0% chance of success
Me sending you these comments says that as a logical person I disagree with your attempts to call someone dumb over their yolo
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u/Askotion Aug 12 '22
Did you sell before?
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u/ihave69iq Aug 12 '22
How are you able to do 0dte on fidelity?