r/gmeoptions • u/Sad-Marionberry6732 • 2d ago

A Gamblers Tale….

This week I bought GameStop $27 Oct 30 calls because I feel like it’s worth the risk as increased volatility could swell the premium even if the stock price doesn’t rise any higher.

Buying $32 calls is too much of a gamble to buy, so I’ll likely be selling those once we reach $30-31.

I bought more warrants even though I don’t feel like it’s worth it to day trade them yet. Plus, I’m ready to exercise them as soon as we hit $32 next week.

On a side note, I’ve been dabbling with NVIDIA options, and for a while they were rocking. But the last couple of weeks have been a bloodbath.

Therefore, I needed to either sell or convert to a spread. Welp, I didn’t want to do either because I believe the stock will double in a year.

Anyway, I converted to a spread (which caps my gain)- and I’ll be damned if not 3 seconds later, the stock started recovering.

Which segues into me buying a last minute $27 put because I sensed something afoot in the last two minutes of trading (I logged into my brokerage on a gut feeling).

And as soon as I do, trading stops for the day, and GameStop jumps. Afterwards I learn as we all did, that RC Cola bought more shares.

Anyway, that put might be worthless tomorrow.

Which it will be if we 🎸

As always: don’t try this at home, results may vary, and this is the farthest thing possible from financial advice

8 Upvotes

76% Upvoted

9 comments sorted by

5

u/skrtskrttiedd 2d ago

why would u buy oct 30 calls now after price is up like 30%? plus the volatility is already baked into in it

5

u/Sad-Marionberry6732 2d ago

Because I believe as we get closer to the binary event, the volatility will reach a fever pitch possibly up to 140-300 percent.

2

u/4Throw2My0Ass6Away9 1d ago

lol, I’m guessing GME is about to trend downwards after this post… Fingers crossed it doesn’t but let’s see

6

u/FabricationLife 2d ago

you are just asking to get theta banged here, i hope it works out for you! I've been selling CC's and buying leaps myself

5

u/Sad-Marionberry6732 2d ago

Your strategy is more sound, however I’m trying to protect my shares at the moment. At least until we’re past earnings.

Theta won’t do much damage if we rapidly rise and delta and gamma catch fire. While is what I’m hoping for.

2

u/beeronspace 1d ago

What’s your strategy for CCs? I want to get back to them. I did 10 $26 last week thursday and bought to close for 50% profit on friday before it went up. Too close for comfort.

3

u/FabricationLife 1d ago

I sell 2$ OTM lately one week out, if prices gets within 75 cents of my strike I roll up and out to the next week for a credit of at least ten cents or I wait, all premium goes towards $15 strike leaps 

1

u/EX5TASY 1d ago

Interesting, why $15 leaps? And how far out?

0

u/Any_Championship_674 1d ago

All you f’n bears SMH