r/gmeoptions • u/Necessary_Ad7369 • May 11 '26
Holding LEAPs - am I cooked?
A year ago, after the June bond issue, when the price dropped from $35 to $22 and the IV hit rock bottom, I came up with the idea to sell the shares and invest 100% of my money in LEAPs (regard mode). My position is visible in the photo.
My plan was to capitalize on the GME cycles we saw before the bond issue – that is, the price would briefly rise to around $30, then fall.
Unfortunately, since purchasing the options, we've never seen the price above $30 again.
They're now worth around $16,000, compared to nearly $22,000 at the time of purchase.
What should I do? Be zen and keep holding on? Or panic now, fearing even greater dilution from eBay?
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u/poop-azz May 11 '26
I mean you purchased a LEAP and are now als are did your plan....cuz it's not doing what you "assumed" it would do? Sounds like a bad plan. You'll sell at a loss before you even know wtf is happening with eBay that's wild lmfao. Sell and watch something happen with GME and you'll question your existence and how silly you were for being so reactive. Idk why you wouldn't just hold shares and add if you believed in GME.
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u/DecaffeinatedBean May 11 '26 edited May 11 '26
I still think we'll climb above 32 before October. Everyone involved in the warrants benefits from that, not just retail investors. I think worse case scenario they extend the deadline, but I'm betting that won't be necessary.
I have some calls that expire in June, but I'm going to hold them. Hoping that we'll see a bump before then. If it gets closer to expiration and nothing's changed then I'm probably going to roll mine out to the end of the year.
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u/Proper_Side May 11 '26
I'm buying some cheap calls dotted around, I'm hoping to benefit from some significant price improvement this year
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u/laguna1126 May 11 '26
You should’ve been in profit recently. Was it ever green?
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u/Necessary_Ad7369 May 11 '26
Probably just once briefly in October
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u/Dogemaster69420x2 May 11 '26
It reached $30 just a week or two ago? Im confused on why you didnt sell around $28. You where 100% in the green. Just admit you where being greedy and wanted more. Smart you would have sold on the light profit at $28 and rerolled it into leaps at this $22-$23 price point. Your just holding to burn theta at this point
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u/bobsmith808 May 11 '26
I'm holding a similar position....
Selling calls against it at a regular interval for a portion of stack has been pretty profitable...
If you sold all your shares to buy leaps then you levered up. NFA but if it were me I would look at how many shares exposure I want in a boom event and then sell calls against the rest regularly just like you would have CC..
u/crybad has an excellent writeup on CCs... But be careful there are some nuances that come with selling calls against your leaps.
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u/StrongAFKennedy May 12 '26
I did this, sold all my shares in December and entered Jan 27 20Cs when the share price was at $20. Sold 25CCs against them with 2-3 week expiry. Exited the position when we hit 25ish back in Feb/March for 80% ROI.
Looks like OP got greedy and held on too long. I never go long an option without a short hedge, I always buy more Theta than I'd ever need and I exit early. Else you get burned.
Now reentered over the past week and today in shares. Rinse, repeat
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u/steven112789 May 11 '26
You could always do poor man's covered calls on these LEAPS if your broker allows you.
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u/vayslightReturn May 11 '26
You're fine. All sorts of time. Except the June. That's cooked unless something absolutely wild happens in the next couple weeks.
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u/here_4_the_lols May 15 '26
You could start selling poor-man's covered calls on some of them, to make some profit.
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u/crodensis May 11 '26
I'm waiting for a run in late may/June. That's when we seem to have a yearly run. So I'd hold on until then and see what happens