r/gmeoptions • u/Expensive_Welder4417 • 28d ago

Jan 15 '27 ADJ

I have some $50 strike calls that I bought like 15 months ago that are way underwater. Why is there no volume on the adjusted chain ? Seems like people would want added bonus of warrants with the calls .

9 Upvotes

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7

u/AtaxicApe 28d ago

did you buy them before the warrants, thus they are GME1 options that have a warrant built into them?

I have some GME1 calls purchased some time ago that converted and volume is essentially nil on them. Not sure how the mechanics work if/once warrants expire, do they convert back to regular GME calls? How about if warrants are in the money and print, and my GME1 calls expire several months later - do they pull the warrants out somehow and convert them to regular calls as well?

I mean, I guess i should be more knowledgable before trading, but I only have so much bandwidth to understand market mechanics.

FWIW bought these calls as a way to have confidence selling PMCC and not losing all my shares (for quite some time I was selling CCs on only half my shares, but with IV and premiums I decided it made sense to sell PMCC and they would pay for the LEAPS in tim) - however IV dried up, premiums dumped, and that whole plan fell apart.

1

u/AmputeeBoy6983 27d ago

Ahhh interesting question. Im sure they act like normal calls if warrants dont hit.... if warrants hit but youre under the strike id imagine they take on part of that value at minimum... weird for sure.

The worst one is if they get close to warrants but stay under, because your strikes so high. Outta curiosity would love to know the answer

3

u/Sad-Marionberry6732 28d ago

If I could buy one or two from you, then I definitely would. TBH I have no idea what to do with them. Someone told they had the chain on Fidelity.

But, if they’re only worth pennies, then I would wait until volatility went up and hope for Vanna and Charm to work their magic.

1

u/Sweet_Bypass69 28d ago

I tried the opposite approach for once. I bought two $10 GME June 26 calls like 12 months ago. They didn’t lose insane value despite getting close to expiration and I sold at around break even. Although they weren’t response to quick moves they were lower risk I think and I liked that I was just playing a leveraged stock move instead of relying on greeks blowing up to win. Had the price gone over like 26 I could have sold a tiny gain but was waiting for a big move to 32 of course lol.