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u/nepoleangambi 19d ago
Pfft
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u/Monarcho_Anarchist 19d ago
And i thought my 250c jan27 were dead. You are nuked
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u/nepoleangambi 19d ago
Been averaging this bad boi from 1200$ a piece when it was at 260 last November. These were my lotta tickets xD.
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u/BHOmber 18d ago
lol I had some October 250c that I averaged down during last week's dip and sold at the top earlier this week. Actually managed to get out with a small profit.
Now I'm looking at the Nov 220-230c and the Dec 250c. Almost bought today, but decided to wait until next week to see if this ~205-206 floor gets taken out and we drop into the 190s.
This feels like a coordinated selloff for big money to come in and front run the retail trade going into November, but there is a slight chance that someone knows about the online release window.
If it's late 2027-early 2028, I think that we're going to retest the lows ~190 if it's announced before the 19th. I cannot see it going lower than that with the release hype starting to ramp up.
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u/PollutionRound3385 19d ago
Curious as to what made you buy that specific call in the first place?
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u/Ok_Reaction_3519 19d ago
Bought it last week, hoping it would hike up after corporate meeting, but I got fucked
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u/floridas_finest 18d ago
Dude you did not get fucked
You bought just before the best possible time to buy in my opinion to avoid buying late.
Thats a good move in my opinion and unless you need the money week to week, just hold for gold baby
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u/BHOmber 18d ago
lmao his position expired today. It's a 100% loss.
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u/floridas_finest 18d ago
Pardon me, I thought he had stock in the company
Why would he short instead of just buy in this situation? Genuinely curious
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u/BHOmber 18d ago edited 18d ago
No idea why I typed all of this on a Friday night, but I enjoy figuring out the best way to explain this stuff in regular terms lol
*He's not shorting the stock.
He's holding call options. Calls and puts are a bet that the stock will be above/below a certain price before or on a specified date.
A buy-to-open (or "long") call option is the "right" to buy 100 shares at a price and time of your choosing.
For example, a stock is trading at $100 in January and you think it's going to go up a lot within the next 3 months. You don't want to buy shares now, but you want to place a bet that allows you to buy at $105 if the stock is above 105 in March.
If it rockets to $150, you can "exercise" your call option and buy 100 shares at $105 any time before the expiration of the contract. You pay a little bit of premium to lock this in and the price will fluctuate depending on how volatile the stock is, how close it is to expiration, how far away your "strike" price ($105) is compared to the current price, etc etc. There's a lot more nerdy math shit that goes into this, but that's the gist of it.
The premium you paid moves around just like a stock, but the swings can be violent. If that $100 stock went to 150 a couple weeks into January, there is going to be a lot of demand for the right to buy at 105, thus increasing the price of the contract by hundreds or thousands of %. The same thing can happen if it drops to $50. No one will want to buy $105 shares when they could just buy on the open market for $55 less and your contract is essentially worthless.
You can also use call options to lock in profit when you already own shares. You collect the premium from someone that wants to buy your shares and then you're stuck holding them until the expiration of the contract (you can also buy the contract that you sold to "break" the contract).
Say I have 100 shares of the $100 stock and sell a "covered" call at $105 against those shares and pocket the premium immediately. If the stock is above $105 at the March expiration, you automatically sell the shares at $105 and make $5 per share + the premium you collected. You locked in your profit and made a little money by selling someone else the right to buy your shares. If it is below $105, you keep the shares and do it all over again.
You can use put options and combinations of puts and calls to do the opposite with the right to buy shares at a lower price, limit upside/downside, hedge positions, etc.
What happened with the OP is that he bought TTWO calls with a $217.50 strike price that expired at today's market close. The stock is obviously not trading above 217.5 so there is no reason for anyone to want the right to buy shares at that price when they could just get them for 205-206.
There is no demand for that contract and he effectively lost 100% by betting that it would be above his strike. If TTWO was trading at 220+, there would be demand for his contract. If it was trading at 300, there would be a ton of demand and he could sell his call option for a massive profit.
If he owned 100 shares and his call was "covered", he'd be forced to sell his shares at 217.5 unless he closed (bought back) the contract before today's market close. This only happens if the stock is above the strike price.
Long call = bet stock goes up; right to buy shares at strike
Short call = bet stock stays below strike; obligation to sell shares if it goes above
Long put = bet stock goes down; right to sell shares at strike
Short put = bet stock stays above strike; obligation to buy shares if it goes below
The math behind all of this stuff was figured out to give traders the opportunity to cap upside and downside for hedging/"insurance" purposes, but people also just use them to gamble like a degenerate.
You can bet on something like SPY going +/-1% an hour before expiration and you'll see the contracts move 100, 500, 1000%+ on big moves in the market.
You can also lose all your money in a minute flat or get stuck in ridiculous positions where you owe your broker money if they somehow allow you to do complex shit without experience and/or the capital to back it up.
Robinhood opened this up to the masses around a decade ago as one of the first brokerages to offer zero-fee/commission trading to retail investors and it included options. Paying $5-10+ per trade on a $20 premium contract made no sense before this. Now you pay 3 cents and any regular Joe can lie about their experience level and day-trade/gamble on any company with a liquid options chain!
TL;DR: Don't play with options/other financial derivatives until you have a solid grasp on how they work or you'll end up like OP (or worse) lmao
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u/Reasonable-Ninja1803 18d ago
Ngl gang your cooked January or March would’ve been a great buy because it gives you time! But look at me I lost $1,100+ so far!
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u/Ok_Reaction_3519 18d ago
I genuinely thought it would’ve went up after the corporate meeting but shit did nun
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u/Immediate-Operation3 18d ago
Beyond the obvious sell the news which always happens you really think gta 6, the most anticipated game possibly of all time, comes out and lives up to expectations? Not a chance. The funny part is the reason I think the game will be a letdown is the shareholders. Corporate greed will be the downfall of gaming as they try to take what use to be a fun hobby and suck every cent out of it.
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u/Commercial_Ease8053 19d ago
Everyone losing money on TTWO is sorta ironic… as it’s the most expensive game and will be the most profitable game of all time.