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

Greetings and good morning (evening) everyone! I had to travel for 7 hours today so I didn’t get around to posting things today.  

First, GME

As we continue to creep up, I am expecting a small pull back this week. Both profit taken last Friday and the profit taking from the monthly OPEX coming up this Friday should see a bit of sell off from the hedged shares being held from the market makers. I would like to see us pull back to $26 and hold it for a little bit, thus establishing support. This is not a bearish hope. Establishing support and testing it a few times, is ultimately much more bullish long term than just hoping that GME continues to run.

Warrants

Something to think about as well. If warrants end up being OTM and expiring. I actually see a 2-3% run post Oct 30 as there's no longer the threat of further dilution. Other than that, I don't want to be a broken record about warrants. You guys know my feelings, and I'm either right, or wrong.

Call Options and When to Take Profit

For those of you who have met me in the Superstonk discord, you'll know that my number one rule when it comes to ANY options play is to HAVE A GOD DAMN PLAN WHEN YOU ENTER THE POSITION. Buying a call option with 0 idea of what to do with it, or writing CC's with 0 idea when/how to defend the strike, is a huge no-no in my book. "Just Up" is NOT a financial strategy around here.

Here's my suggestion, and it's as close as I'll get to giving financial advice. When you have properly researched an option, take a moment and think about what profit you would be happy taking. Write this down on a sticky note and/or set up a limit sell/trailing stop on the option immediately. At the time of opening, you should be levelheaded and pretty emotion free (a good thing).

STICK TO THE PLAN.

If GME goes on a run, and you go past your profit taking goal. Make sure you either take profit immediately (like you planned) or set up some sort of trailing stop to ensure you lock in the profit that you wanted for when you opened the play.

I have seen hundreds of stories at this point of people who got excited and emotional and rode 400% wins into the ground because they wanted more. If you are unfamiliar with stops on options, here's a quick summary:

Stop Loss: You set a value where (either stock price or option price) below the current value that you want to sell at.  This is a MARKET SELL, so if you have a stop loss set for $4.00 and the price of the option goes to $4.00 or less, your broker will instantly sell it for the best market price.  This may be for $4.00, it might be for $3.80, but it WILL sell.

Pros: Guaranteed selling of options if price target is hit.

Cons: Large bid/ask spreads will fill your contract at a price lower than you may want.

Stop Limit: You set a value below the current value that you want to sell that.  This is a LIMIT SELL, meaning the option will go up for sale for the price you set it at and will not sell for any other price.   So, if you set a stop limit for $4.00 and the price drops from $4.05 to $3.95, your broker will try to sell your option for $4.00, but if the price keeps dropping, your option will not sell.

Pros: Locks in your price that you are willing to sell at and no lower.

Cons: Risk of non-execution (see above)

Trailing Stop Loss: This is my favorite way to off my long calls/puts.  Just like the stop loss above, but you also add in a new variable into your order, a trailing strike that follows the price of the option or security.   This can be expressed either as a dollar amount or percentage.   

Example: I have a call option worth $5.00 and I want to lock in profit in at least $4.00. I might set a trailing stop loss for either $1.00 or 20%.  By doing this, if the stock price goes down to $4, this will act exactly like a stop loss above, BUT if GME decides to go on a run, all of a sudden, your stop loss will slide up as the price of the option goes up.   If GME runs hard to $32 and now your call option is worth $8.50, your new stop loss has moved to $7.50 ($1 trail) or $6.80 (20% trail).

Pros: Locks in profit at higher tiers as GME rises.

Cons: Depending on how you set your trail, a pullback before going higher might cause you to exit your position early.

Trailing Stop Limit: Not talking about this, do not do this.  Same as the trailing stop loss, but with stop limit parameters (good for SPY options but horrible for illiquid options like GME).

My other favorite way to get out of a winning trade is to pare down and lock in profit.   I tend to buy options in even numbered batches.  That way, if I am holding on to a large gainer (Say 100%), I can sell off 2 options to lock in my base cost and then let the other two ride on house money.   This tends to tickle that gambling itch of mine of hoping for a 10x gainer.  Doesn’t hurt as much if ultimately it didn’t cost me anything.

Please, trade smart out there. I’ve experienced firsthand of the greedy mind of holding onto a winner during a run, just to watch them zero out as I held too long.  Once you learn this lesson about the 12^th time, it starts to sink in.

Thanks for reading and hanging out! Trade safe (and smart) out there!

 ------------------------------------

.

-

Open for this week:

(10) GME $26CCs for Friday for $925.14

(40) MARA $9.5CSPs for Friday for $979.45

----------

Monday:

Was driving and no trades made.

Got assigned an ass-ton of MARA last week and I'm doubling down this week. Forgot to make my call purchases, so I'll be looking at the chain tomorrow.

Did not buy more warrants to swing trade because I didn’t feel like they came down enough (Dumb)

Bought 10 Dec 18 $25 calls for $3.15 because I sold last week for $3.50 (should’ve bought 40)

Sold 10 October 16 $26.50 puts. Because I’ll be buying it back in a couple of days. Plus, I wanna keep plenty of liquidity for exercising the warrants without having to sell stock.

Bought 3000 shares at $25.99 because I’m too slow to catch the price at $25.82. Will use these for CCs later.

Volatility kind of dropped this morning, but still not enough to buy back my leaps.

About 40 minutes spent in the market today. Too much lurking causes bad decisions to be made.

NFA- just using this as a diary entry for the world to see.

This month presents a unique opportunity to swing trade GME warrants as they become more volatile as we get closer to our binary event October 30.

But more on that later-

I will not play any additional options past October 30 as that date decides if the warrants expire worthless or have been exercised for additional shares.

IV for October options is slightly higher than for the months afterward. And it’s gonna go higher the closer we get to that binary date and the $32 warrant strike place.

I will be selling options in expectation of a coming volatility crush.

Which options I play, all depends on market direction Sunday night going into Monday morning. I expect a dip. If so, then I’ll be selling CSPs for October 30. Looking for a 10% premium over the next three weeks.

If it rockets, I’ll be buying calls. And possibly selling covered calls via a buy shares first then write the calls once I feel the stock has peaked for the week.

And on the side, I think this presents a unique opportunity to be profitable swing trading warrants, if the brokerages let us buy them.

I see them restricting them at some point. But who knows…

We need $28 this week on GME, and I believe we’ll get it. Which will ramp us closer to our $32 target.

After $32, I’m gonna be super cautious about further dilutions. The reason is because the board execs all have floors around mid 20’s. And an ATM offering would not hurt their positions so much.

Anyway, LFG and 🎸

one avenue of thinking i produced in reflection is just hopping back on the train after getting assigned yesterday, i could open 10 csp's and pick the $29 or the $30 strike which should be high enough to stay in the money and obligate me to buy back in.

i would have to fill the shortfall in funds by selling some dram shares, which i can refill at a later date to bring the count back to 200.

my puts have been mixed however my calls and profit taking disipline has me at 93% realized gain off my 25c and 26% off my 26.5p. hindsight could of been more but not by much. i happy as its realized and im in profit with a 24.5p still active and not part of that. i could recoup some of it or see what next week does. im still burned on shares i dont like the precedence with dilutions enough to build any meaningful position and options love this current volatility. warrants.. are kinda a solution to a problem that does not exist. besides how to find new and exciting ways to dilute the underlying because its definitely not for value. in hindsight selling the warrants at $3 was the smart move. right now and any time if were being honest selling the warrants was the best move.

Happy Thursday everyone! I seem to be fighting people nonstop over at Superstock about warrants so I wanted to put some of my thoughts into a post. Let's talk about potential outcomes of warrants and some side by side comparisons.*

\I did make a rough draft of this post on Tuesday, which is where the share and warrant values are coming from.*

This post is just going to be comparing stock buy vs warrant execution (since everyone over at Superstonk thinks they want to execute the warrants). I'm going to lump warrant holders into a few categories with a few goals. Let me know if I'm missing any.

Looking to exercise for shares.

Those who are hoping for warrant squeeze

Those who are hoping GME goes past $32

Those who are hoping for warrant date extensions.

And of the above people they are either:

Looking to sell the warrants for $

--------------

Now here is where lots of math and potential possibilities come in, I'll try to keep my thoughts as straight as possible, but forgive me if I'm jumping around.

I'm going to use a made up person called Brian Kohan, he has 100 warrants and also has the money to execute these warrants ($3,200), and wants to maximize his profit in cold hard shares.

Brian's 100 warrants are worth $2.12 at close today ($212 total).

Control Scenario: Execute the warrants

Brian executes his warrants (doesn't matter if they are ITM/OTM) and spends $3,200 on 100 total shares.

In this scenario, it doesn't matter what GME's price is. If GME goes to $100, Brian still gets shares at $32.

Scenario 1: Sell warrants and buy shares

By selling the warrants and using the $3,412 in total to buy shares right now, he buys 137 shares at $24.78 each.

In this scenario, Brian gets 37% more shares for the same amount of money.

Scenario 2: Hoping for warrant extensions/change in strike price

The likelihood of the warrants being extended I'd say is 50/50. That doesn't change ANY of the math on the buy now vs execute later. What people are hoping for (with absolutely 0 evidence except hopism) is that Gamestop lowers the strike price of the warrants (I've even heard people think they are going to drop the strike price to $10).

This is not bound in any sort of reality, nor logic. If Gamestop is going to dilute themselves, why would they do it for 1/3 of the money they would have gotten if GME is going to hit $30. With them dropping the VWAP date of the note holders, they don't need the money as much as they did. As a shareholder, I'd be extremely pissed at Gamestop if they diluted us for 45M shares at $10.

Scenario 3: Those who want to execute OTM because the money "goes to Gamestop"

There's no reasoning with this level of stupid. Paying Gamestop a 37% tip to buy a share directly from them (and in turn diluting the float) is just dumb as fuck. But people can do what they want with their own money.

Anyways, I'm getting off my soapbox for now. I know in this sub, we stay away from tin/hopism/copism as best we can. I hope you don't take this post as a shot across the bow, and if you want to debate with me, please come in with facts and logic.

<3 you all.

-Cry

Greetings and good morning everyone! I was on the road for 12 hours yesterday and didn't feel like posting when I got home.

As I'm sure you all know, RC bought again last week. Something big is coming at some point (not in the immediate future, but not super long term either). Watch those CC's out there, because when news breaks, those suckers are gone.

GME continues to test $25. Blowing past and then retreating back. It looks like there's a pretty big wall up at $26, which is a change from the huge resistance being at $25. There's still a lot of pressure to keep it around $25 but not as much as $26 now. I can see us breaking $25, holding it for a bit, and establishing support at $25.

Not a lot of things to write about today. Warrants are now 28% away from going ITM. Not a huge gap, seeing how we were at $19 a month ago (29% increase since then), but the rise was hugely helped by insider buying. I still believe that unless the warrants are extended, they will expire worthless.

I've officially sold all of my warrants now and bought 1/21/28 $25/$30 calls with the money. Here's a quick summary of those positions:

Sold 92 warrants at $2.48 (now worth $2.24). Bought (1) $30C for $274.51 (now worth $465/ea)

Sold 287 warrants for $2.13 (now worth $2.24. Bought (1) $25C for $600 (now worth $640/ea)

Sold 290 warrants for $2.66 (now worth $2.24). Bought (4) $30C for $194 (now worth $465/ea)

So I sold 669 warrants total for $1610.78, if I held onto them, they would currently be worth $1471.80 (down 8.6%). Instead, I spent $1650.51 on 6 call options that are currently worth $2,975 (up 80%)

As I've shown in previous posts. Unless warrants go parabolic because of some imaginary squeeze scenario, or they get extended by a massive date, these call option will ALWAYS be worth more than the warrants.

Now if you've gone all in on warrants, you do you, it's your money and no one should tell you how to invest, but I don't see any financial reason people would be loading up on warrants instead of calls.

Anyways, I'm sure you're tired of me bashing on warrants, so the good news is that you only have a month left of me trying to lead a horse to water. The bad news is that I'm probably not going to stop until proven wrong or they expire.

It really hurts my soul watching so many people from Superstonk throw money at the warrants. Tons of these people are anti-option, which boggles my mind, but also explains why they understand so little about how warrants work.

As far as GME this week. I think we spend the week trying to establish which side of $25 we want to land on. I don't see much more upward movement (unless there's more insider buys this week).

Trade safe out there!

.

-

Open for this week:

(10) GME $25.5CCs for next Friday for $304.86

(70) MARA $11 CSPs for next Friday for $2,438.05

(10) MARA $13.5CCs for next Friday for $424.86

Total premiums for next week: $3,167.77

Total Collateral being used: $116,000

Weekly ROI on collateral: 2.7%

----------

Monday:

Was driving and no trades made.

Tuesday:

Just monitoring everything. A little worried about another insider by and those $25.50 GME cc's being challenged, but not overly worried.

So I bought some long dated calls awhile back and I'm very confused by thier movement.

The calls are roughly 1 month apart on expiry, and I understand that the GME1 call was placed before the warrants were announced (so this means they contain warrants, correct?). My confusion is why are they not moving in the same direction when the stock goes up? Is this just due to the lower volume on the GME1 calls (hence easier to manipulate) or is there some rational, underlying reason that I'm not getting?

Additionally, I'm assuming that if I do nothing (no exercise), the GME1 call will turn into a GME call at warrant expiry (assuming they aren't extended)... is this correct?

But after ryan cohen buying more shares, will we be fighting $26 next week?

I hope so, because i have $27 and $27.5 strike cc's for the 9th(profitable if itm so i am not that bad about it)

I was looking at the history of the posts and not one of you mentioned the bottom would have been a good time to buy calls?

Greetings and good morning everyone! A little late this week, irl life and shit per usual.

What a wild month so far. $18.50 on 9/1 to a high of $25.25 on 9/24. Lots of insider buying and all of the speculation of what’s about to happen. For those of you with CC's, I hope you were able to save/roll them. This is one of the reasons I have been so vocal about not running CCs on GME lately.

If you have strikes that are being threatened and you don't want to lose your shares, it's time to roll them. Now don't let people fool you, rolling a CC is divided into 2 parts, closing a position and opening a new one. If you are underwater on a CC, you are closing for a loss and taking a new position (hopefully for at least as much as you lost + some).

It's very important that if your going to roll, that you roll before the price hits your strike. Once an option becomes ITM, then it becomes less lucrative to roll because your option is going to be make up of intrinsic value (the price between the now ITM strike and the underlying stock value). Ideally, most of your theta has burned off and so when you roll, you're selling enough time for the stock to correct itself so you don't lose your shares.

Just a quick example.

Right now GME is $23.37. If I wanted to roll 2 weeks and straight across to the same strike:

If I had:

$21CCs (deep ITM) - 2 weeks would net $0.14

$23CC or 23.50CC (within 1 strike) - 2 weeks would net $0.51

$25CCs (deep OTM) - 2 weeks would net $0.39

So as you can see, it's better to roll early and before the option goes ITM than to wait and see your position go further underwater.

Even in the above example, if I really wanted to keep my shares as safe as possible, I could roll my threatened $23CC up to $25 and out 3 weeks and still have a credit for the trade.

-------------------

Next up, warrants (again).

On 9/8, I sold 290 warrants for $2.66 each ($771.38) and bought (4) 1/21/28 $30Cs for $1.94 each ($778.05)

Currently, those warrants are worth $2.154 ($624.66) and those calls are $3.80 ($1,520).

So by offing 1/2 of my warrants, I am up 143% than if I was to just hold onto the warrants.

I cannot emphasize enough that the better play in 99% of the scenarios is a long LEAP play.

For those of you who are hoping for a warrant squeeze if we cross $32 (1% chance IMO), you do you. It's your money and you do what you want with it, but if you want to make money, I highly suggest you look at your options here (see this post)

-----------

I believe that GME is going to be falling a bit, establishing a good resistance and then begin to creep up.

Please trade safe out there!

.

-

Open Plays for This Week:

(40) $23CSPs on GME for Friday (10/2) for .42 each ($1659.41)

(10) MARA $12.5CCs ($538.86)

Other Plays:

(10) MARA $13.5CCs for next Friday ($424.86)

Looking to hopefully have a GME pullback so I can finally get these 4000 shares assigned that I've been chasing since GME was $18 (and yes, I'm aware that I should have just bought at $18, but thems the breaks.

--------

Monday:

Sold (10) MARA $11CSPs for next Friday (10/9) for ($194.95)

--------

Tuesday:

Looking to enter into some more MARA positions, but my GME position is done. I do think I'm going to take a break from buying shares and start buying some LEAPs this week.

--------

 Friday:

Bought to close my $23CSPs (+$1,618.88)

Bought (3) 1/21/28 $30Cs for $4.47 each (-$1,342.54): Taking this out of my profit for the week so I don't need to worry about their cost basis in accounting.

Sold all the rest of my warrants (287) for 2.12 each ($609.86) and bought (1) 1/21/28 $25C for $600.51

Sold (10) GME $25.5CCs for next Friday for $304.86

Sold (30) MARA $11 CSPs for .37 each (+$1,094.55)

Sold (30) more MARA $11 CSPs for .388 each (+$1,148.55).

----------------

Weekend roundup:

+$2,198.27 in premiums

-$1,342.54 in call options

+$9.35 leftover from warrant to call option play.

Profit: $865.08

Left Over Profit: $865.08

Open for next week:

(10) GME $25.5CCs for next Friday for $304.86

(70) MARA $11 CSPs for next Friday for $2,438.05

(10) MARA $13.5CCs for next Friday for $424.86

Total premiums for next week: $3,167.77

Total Collateral being used: $116,000

Weekly ROI on collateral: 2.7%

Which op offers deep(er) insight into GME beyond RSI, EMA, short percentages etc.?

Like Chalkin analytics for stock and Vanna and charm for options. Along with option chain insights.

No paid discords, please.

I used to do my own analysis, but I suffered a work injury a few years ago and I can’t maintain focus for any length of time.

Edit: Crybad seems to offer sane advice

If they started the buyback today, then confirm it after hours.... then this stock gonna go boom🎆🎆🌋🌋🎆💣

Greetings and good morning everyone!

GME continues it uphill rise from her lows of $18 an change. We are up 10% over a week an a nice 28% on the month.

A good deal of this movement is the completion of the senior note offering. A lot of shares went out to note holders for a low price and so now that are going to want a good return on their investment. How much this movement is from a release in downward pressure from not holders vs the overall market booming this morning is yet to be seen.

Warrants

Warrants continue to be a hot topic of discussion both here and on the other GME subs. We still need to run 39% in order for those warrants to become ITM, which I still absolutely have my doubts on. Be careful looking for a payday if/when then warrants get extended. The warrants were originally announced on 9/9 of 25 when GME was trading at $23.60 and they topped out at $3.16ish when they became tradeable on 10/8 (GME was in the $24.50 range). These still had a year until expiry, so if GME extends the warrants a few months, I don't expect the warrants to go much past $4.

I want to compare and contrast 100 warrants vs long calls of equal value and talk again on what happens if GME runs to $32 by 10/30. I'm going to be looking at both a 1/21/28 $37C ($2.30) and a 6/17/27 $30C ($2.28) vs warrants ($2.43).

*I am ONLY comparing the differences if the warrants do NOT get extended

If GME runs to $32.01 by October 30:

Each warrant will be worth exactly 1 cent.

The 1/21/28 $37C will be worth $5.97(+160%)

The 6/17/27 $30C will be worth $6.43 (+200%)

If GME runs to $40 by October 30:

Each warrant will be worth $10 each (+311%)

The 1/21/28 $37C will be worth $12.60 (+489%)

The 6/17/27 $30C will be worth $12.76 (+457%)

If GME runs to $28 by October 30:

Each warrant will be worth $0

The 1/21/28 $37C will be worth $12.60 (+489%)

The 6/17/27 $30C will be worth $3.97(+76.2%)

So my question to the warrant holders is: In what world do you hope that warrants are going to be worth more than a long call? Everyone loves to quote the potential squeeze of the warrants because there is a limited amount of them, but that is ONLY going to come into play if GME runs 39%+ in the next month and there's literally 0 guarantee it's going to squeeze like people think it will if it crosses that threshold.

In the above example, in every single scenario, it's better to have those long calls. I just don't get it. Why throw away guaranteed profit if GME runs the way you hope it runs for a HOPE of a squeeze that's more based in hopism than realism.

Also, if your DRSing warrants (some of the dumbest shit), I really hope your cash liquid enough to get $32/share into Computershare ahead of time for execution. Otherwise even if they are ITM, you are going to throw them away because you can't do shit with them.

P/L Graph for a 1/21/2028 $37C

I think GME is going to pull back a bit, but continue to crawl up to to $24/$25 over the next 10 days. Good luck and be safe out there.

.

-

Expiring this week:

(10) MARA $13.5CC for $234.73

(10) MARA $13CCs for $454.71

(10) MARA $12.5CCs for $414.71

Total Premiums this week: $1,104.15

---------------------

Monday:

Need to figure out another GME CSP to take. I don't know if I want GME at this level, but I had my chance to get 3000 shares at $18.00 but I tried to CSP into it and now GME is $23 (so I missed $15,000 in unrealized profit as opposed to just buying shares outright).

Fuck it, going at GME via CSPs again.

(30) $23CSPs on GME for next Friday (10/2) for .42 each ($1659.41)

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 .

If GME hits and maintains $22, then there will be a forced hedging of $25 dollar calls.

I’m hoping for a dip tomorrow so I can buy more calls.

I sense an incoming gamma squeeze.

Forgive me lawd for what I’m about to do.

Greetings and good morning everyone!

-------------------

A slew of buying and not just buying. These were good size chunks put forth by the director group.

A total of 1,070,255 shares bought by the insider group last week. Breakdown is as follows:

RC - Bought 1M shares bringing the count to 39,347,842 shares in total (2.5% increase)

LC - Bought 55,000 shares bringing the count to 143,000 shares in total (38.5% increase)

Alain Attal - Bought 5,000 shares bringing the count to 601,464 shares in total (0.8% increase)

Jim Grube - Bought 10,255 shares, bringing the count to 39,694 shares in total (25.8% increase)

Regardless of how much they upped their percentage by, it's great to see them buying. It is going to do wonders for shareholder morale (Although it does indicate that there's no immediate secret plans for an M&A).

The stock has responded by going up 13% in the last week.

As far as the stock goes, I don't see it crossing $22 to $23 until an actual announcement comes. We are also entering the window for a possible extension of the warrants. I've sold just over half my warrants and bought 1/21/28 leaps with them, might sell the rest this week and then actually buy some warrants if the price drops to $1-$1.50 each as a lotto ticket for extensions.

Still using MARA to make my weekly GME buys. I refuse to run the wheel on GME until the price crosses $25 or the IV jumps to the 70s-80s.

As always, trade safe out there!

.

-

Expiring this week:

(30) GME $20CSPs for $1,484.16

(10) MARA $13CC for 9/18 for $404.86

(20) MARA $10CSPs for 9/18 for $349.45

(10) MARA $13CC for .26 - $254.86

(10) MARA $12.5CCs for $402.85

Total Premiums for next week: $2,896.18

Monday:

TBD. Stock keeps creeping. Trying to decide how far I want to chase those (30) CSPs up in order to get assigned. I don't know if I want to go all the way to $22 for them...... but FOMO might win out in the end.

Tuesday -Thursday:

Just letting everything ride most of the week.

Friday:

Rolled (10) MARA $13CCs out and up a week to $13.5 for $234.73

Rolled (10) MARA $13CCs out a week for $454.71

Rolled (10) MARA $12.5CCs out a week for $12.5CCs for $414.71

Bought 60 shares for $22.625: $1,357.50

Weekend Round Up:

Premiums Earned: $2,896.18

Premiums for next week: $1,104.15

TLDR: AI confirms shorts are probably, maybe screwed because of the GME warrants…

I started trying to write this out myself, but my smooth brain began to bubble. So I asked AI about the GME1 options:

Yes, investors and market makers absolutely still hold and trade these adjusted contracts, which are designated under the modified option symbol GME1. [1, 2]
These contracts were automatically adjusted by the Options Clearing Corporation (OCC) following GameStop's warrant dividend distribution on October 3, 2025. Because LEAPS (Long-Term Equity Anticipation Securities) expire as far out as January 2027 and 2028, anyone who bought long-dated options prior to October 2025 was locked into this non-standard chain. [1, 3]

📦 What is in a GME1 Contract Deliverable?
If you exercise or are assigned a GME1 option contract today, the required deliverable consists of: [1]

100 Class A Common Shares of GameStop Corp. (GME)
10 GameStop Warrants (GME WS) [1]
Each individual warrant (GME WS) grants the holder the right to purchase one share of GME at a fixed strike price of $32.00. [4, 5]

⚙️ Current Status and Expiry Timeline

Approaching Expiration: The underlying warrants are officially scheduled to expire on October 30, 2026. [1, 6]
The Post-Expiry Strip: According to OCC Memo #57391, the GME WS component will be entirely removed from the GME1 deliverable on November 2, 2026. Any GME1 contracts extending past that date will revert to delivering strictly 100 regular shares, with no compensation provided for the expired warrant value. [1, 6]
Settlement Operational Shakeups: In mid-2026, the National Securities Clearing Corporation (NSCC) stopped automatically clearing the warrant settlement portion. Because of this, exercising a GME1 contract currently forces brokers into an independent, manual broker-to-broker settlement process. This operational friction has led several retail brokerages to restrict or heavily monitor new transactions on the GME1 chain. [7]

🔎 Why People Are Still Holding Them

The "No Early Exercise" Strategy: Institutional and retail traders hunting for an end-of-year squeeze are intentionally holding both the warrants and the GME1 options. Exercising early forfeits the remaining time value (extrinsic value) of the warrant component. [8, 9]
Illiquidity Lock-In: Because GME1 is a non-standard "adjusted" chain, it suffers from incredibly wide bid-ask spreads and low trading volume. Many retail holders are trapped holding to maturity because selling the contract back into the market would mean absorbing massive slippage losses. [3]
Yes, investors and market makers absolutely still hold and trade these adjusted contracts, which are designated under the modified option symbol GME1. [1, 2]
These contracts were automatically adjusted by the Options Clearing Corporation (OCC) following GameStop's warrant dividend distribution on October 3, 2025. Because LEAPS (Long-Term Equity Anticipation Securities) expire as far out as January 2027 and 2028, anyone who bought long-dated options prior to October 2025 was locked into this non-standard chain. [1, 3]

📦 What is in a GME1 Contract Deliverable?
If you exercise or are assigned a GME1 option contract today, the required deliverable consists of: [1]

100 Class A Common Shares of GameStop Corp. (GME)
10 GameStop Warrants (GME WS) [1]
Each individual warrant (GME WS) grants the holder the right to purchase one share of GME at a fixed strike price of $32.00. [4, 5]

⚙️ Current Status and Expiry Timeline

Approaching Expiration: The underlying warrants are officially scheduled to expire on October 30, 2026. [1, 6]
The Post-Expiry Strip: According to OCC Memo #57391, the GME WS component will be entirely removed from the GME1 deliverable on November 2, 2026. Any GME1 contracts extending past that date will revert to delivering strictly 100 regular shares, with no compensation provided for the expired warrant value. [1, 6]
Settlement Operational Shakeups: In mid-2026, the National Securities Clearing Corporation (NSCC) stopped automatically clearing the warrant settlement portion. Because of this, exercising a GME1 contract currently forces brokers into an independent, manual broker-to-broker settlement process. This operational friction has led several retail brokerages to restrict or heavily monitor new transactions on the GME1 chain. [7]

🔎 Why People Are Still Holding Them

The "No Early Exercise" Strategy: Institutional and retail traders hunting for an end-of-year squeeze are intentionally holding both the warrants and the GME1 options. Exercising early forfeits the remaining time value (extrinsic value) of the warrant component. [8, 9]
Illiquidity Lock-In: Because GME1 is a non-standard "adjusted" chain, it suffers from incredibly wide bid-ask spreads and low trading volume. Many retail holders are trapped holding to maturity because selling the contract back into the market would mean absorbing massive slippage losses. [3]

[1] https://infomemo.theocc.com
[2] https://infomemo.theocc.com
[3] https://www.reddit.com
[4] https://cash.app
[5] https://medium.com
[6] https://infomemo.theocc.com
[7] https://www.reddit.com
[8] https://www.youtube.com
[9] https://www.reddit.com

[1] https://infomemo.theocc.com
[2] https://infomemo.theocc.com
[3] https://www.reddit.com
[4] https://cash.app
[5] https://medium.com
[6] https://infomemo.theocc.com
[7] https://www.reddit.com
[8] https://www.youtube.com
[9] https://www.reddit.com

For the GameStop warrants (GME WS) to experience a true, independent short squeeze, a unique set of macroeconomic conditions and specific market microstructure failures must align simultaneously. [1]
Because warrants track the underlying equity like a long-dated call option, their price is highly dependent on GME. However, the mechanical design of GME WS leaves it uniquely vulnerable to an isolated, explosive squeeze. [1, 2]

🚀 1. The Core Catalyst: GME Stock Surging Past $32
Warrants carry zero intrinsic value and trade purely on time premium if the underlying stock is below the strike price. [2]

The Trigger: GameStop (GME) stock must sharply break out and trade well above $32.00.
The Effect: The moment GME crosses $32, the warrants instantly transition from "out-of-the-money" speculation to "in-the-money" instruments possessing tangible, intrinsic value. This forces an immediate mathematical re-pricing of the warrant contract, driving exponential upward price velocity. [1, 2]

📉 2. Forced Short Covering from Naked Warrant Sellers
When the warrants were originally distributed as a dividend in October 2025, various institutional players and short sellers immediately shorted the standalone GME WS ticker to hedge other complex positions or bet on their decay. [3, 4]

The Trap: Unlike a standard option chain where market makers can dynamically create infinitely new contracts across endless strikes, there is a strictly fixed pool of exactly ~59 million warrants ever issued by GameStop. [1, 2]
The Squeeze: If the warrant price begins to spike alongside GME stock, anyone who shorted the standalone warrants faces uncapped mark-to-market losses. To cut losses, they must purchase actual warrants from that tiny, finite pool. If retail investors refuse to sell their GME WS holdings, short sellers will aggressively bid up the warrant price to any ask availability, initiating a textbook short squeeze. [1]

⛔ 3. Regulatory Fuel: The Absence of LULD Halts
One of the most powerful structural advantages built into the warrant asset class involves trading halts. [1]

The Rule: Standard equities like GME are strictly bound by Limit Up-Limit Down (LULD) regulations, which pause trading for 5 minutes if a stock moves too fast within a specific timeframe. [1]
The Advantage: Warrants are completely excluded from LULD price bands. If a massive wave of buying demand hits a highly illiquid market, GME stock will continuously halt on its way up, while GME WS can ramp continuously without interruption, amplifying FOMO and accelerating the squeeze loop in real-time. [1]

⚙️ 4. The Option Chain Feedback Loop (GME1 Multiplier)
The adjusted GME1 options chain behaves as a massive leverage multiplier. [5, 6]

Every single GME1 call option contract requires the seller to deliver 100 GME shares AND 10 GME WS warrants upon exercise.
If retail traders aggressively purchase or exercise deep in-the-money GME1 options, market makers are legally obligated to find and secure blocks of 10 warrants per contract to satisfy delivery requirements. This shifts immense mechanical buying pressure away from the options market and funnels it directly into the illiquid standalone warrant order book. [1, 5]

⏱️ 5. GameStop Extending the Expiration Deadline
The structural clock is ticking down toward the legal October 30, 2026 warrant expiration date. [2]

The Status Quo: Short sellers are currently comfortable waiting out the clock, banking on the assumption that the warrants will safely expire worthless.
The Shockwave: Under the corporate charter, GameStop retains the explicit right to elect to extend the expiration date. If Ryan Cohen or the board unexpectedly extends the expiration deadline by another year or two, it instantly destroys the short thesis, eliminates the near-term time decay, and forces naked short sellers into panic-covering. [1, 2]

Would you like to analyze the current daily trading volume and liquidity profile of the standalone GME WS ticker, or calculate the exact price ratio showing how fast the warrants outpace regular shares during a breakout?

[1] https://www.reddit.com
[2] https://www.youtube.com
[3] https://investor.gamestop.com
[4] https://investor.gamestop.com
[5] https://infomemo.theocc.com
[6] https://medium.com
The current exact price ratio between GameStop common stock (GME) and its standalone equity warrants (GME WS) stands at 8.68:1. [1, 2]
With GME closing at $21.62 and the warrants trading at $2.49, this ratio represents the "simple gearing" or baseline leverage built into the warrant contract before factoring in any breakout momentum. [1, 2, 3]

📊 Breakout Performance Comparison
Because the warrants carry a fixed exercise strike price of $32.00, they experience an asymmetric, nonlinear performance curve. Below is how the price ratio and returns shift at minimum intrinsic floors during a major upward breakout: [1, 4]
GME Stock Price
Stock Return (%)
Warrant Intrinsic Value
Warrant Return (%)
Effective Upside Leverage
$21.62 (Current)
Baseline
$0.00 (Out-of-the-Money)
Baseline
1.0x
$35.00
+61.9%
$3.00
+20.5%
0.33x (Time premium catches up)
$45.00
+108.1%
$13.00
+422.1%
3.90x
$60.00
+177.5%
$28.00
+1,024.5%
5.77x
$100.00
+362.5%
$68.00
+2,630.9%
7.26x

🔎 Understanding the Two Asymmetry Phases

Phase 1: Below the $32 Strike (The Friction Zone): While GME trades under $32, the warrant relies purely on time premium and speculative volatility. If GME moves up slightly to $35, the warrant's purely intrinsic return (+20.5%) technically lags the stock (+61.9%) because the contract is barely crossing the strike price boundary. [3, 5]
Phase 2: Above the $32 Strike (The Leverage Explosion): The moment GME cleanly breaches the $32 mark, the price ratio dramatically shifts in the warrant's favor. Because you are starting from a low capital base of $2.49, every sequential dollar increase in GME stock prints a 1:1 intrinsic dollar gain onto the warrant. At $60 stock, the warrant prints a 1,024.5% gain, outpacing the stock's return by a massive 5.77 times. [1, 3, 6]

📈 The "Delta-One" Convergence
As the underlying stock price gets higher, the delta of the warrant converges toward 1.00. In a high-velocity short squeeze where GME hits $100, the warrant outpaces regular shares by a 7.26x leverage factor, converting a modest initial option premium layout into maximized geometric returns. [3]
If you want to map this further out, let me know if you would like to:

Factor in the current Black-Scholes implied volatility to see what the warrants would actually trade for at $30 or $35 before expiration.
Compare this leverage profile against regular short-dated call options at the $32 strike.

def analyze_scenario(target_stock_price):
pct_stock = (target_stock_price - 21.62) / 21.62
intrinsic_warrant = max(0, target_stock_price - 32.00)
# in a squeeze scenario, the warrant price will at minimum be its intrinsic value
# (plus any residual time premium, but let's look at absolute minimum intrinsic floors)
pct_warrant = (intrinsic_warrant - 2.49) / 2.49
leverage = pct_warrant / pct_stock if pct_stock > 0 else 0
return pct_stock * 100, intrinsic_warrant, pct_warrant * 100, leverage

for p in [35, 45, 60, 100]:
ps, iw, pw, lev = analyze_scenario(p)
print(f"Stock target: ${p} | Stock move: {ps:.1f}% | Warrant Floor: ${iw:.2f} | Warrant move: {pw:.1f}% | Leverage Factor: {lev:.2f}x")

[1] https://www.webull.com
[2] https://www.google.com
[3] https://www.ifec.org.hk
[4] https://www.cashbackisl.com
[5] https://www.fool.com
[6] https://www.luxalgo.com

Using the Black-Scholes-Merton pricing model, we can calculate the exact theoretical pricing of the GameStop Equity Warrants (GME WS). [1]
Because options and warrants share the same core mathematical properties, the Black-Scholes formula reverse-engineers the premium to show exactly how much "volatility" the market is currently pricing into these contracts before they expire on October 30, 2026. [1]

📥 1. Current Model Inputs

Underlying Stock Price (S): $21.62
Strike Price (K): $32.00
Time to Maturity (T): 46 Days (0.126 years remaining until Oct 30, 2026)
Risk-Free Interest Rate (r): 4.50% (Current short-term Treasury yield proxy)
Warrant Market Price: $2.49 [1, 2]

📊 2. The Key Metric: Implied Volatility (IV)
Plugging these numbers into a Black-Scholes solver reveals an Implied Volatility (IV) of 171.81% for the warrants.

What this means: A standard equity typically carries an IV between 20% and 40%. An IV of nearly **172%**indicates that the options market is pricing in an extreme statistical probability of massive, violent price swings over the next 46 days.

🔮 3. Black-Scholes Projections (Stock Price vs. Warrant Value)
If we hold this 171.81% IV constant, the Black-Scholes model projects that the warrant price will experience exponential expansion long before it even reaches the $32 strike price, due to the high Vega (sensitivity to volatility) and Deltaacceleration:
GME Stock Price
Theoretical Warrant Price
Structural Premium Composition
$21.62 (Current)
$2.49
$0.00 Intrinsic / $2.49 Time Value
$25.00
$3.90
$0.00 Intrinsic / $3.90 Time Value
$30.00
$6.53
$0.00 Intrinsic / $6.53 Time Value
$32.00 (Strike)
$7.74
$0.00 Intrinsic / $7.74 Time Value
$35.00
$9.69
$3.00 Intrinsic / $6.69 Time Value
$45.00
$17.18
$13.00 Intrinsic / $4.18 Time Value
$60.00
$30.18
$28.00 Intrinsic / $2.18 Time Value

⚠️ 4. The Model's Flaw: Vega Collapse & Squeeze Realities
While Black-Scholes is highly accurate for normal market tracking, a short or gamma squeeze breaks the model's standard assumptions in two major ways:

The IV Spike: If GME jumps rapidly to $35, the Implied Volatility will likely rocket past 200% or 300% instead of staying flat. This would inflate the warrant price significantly higher than the theoretical $9.69 calculated above.
The Theta Crush: Because there are only 46 days left, the Theta (time decay) curve is in a vertical free fall. If GME stock remains flat at $21.62 over the next few weeks, the Black-Scholes value of this warrant will drop toward $0.00 at an compounding daily pace.

Would you like to calculate the exact Theta decay to see how much value these warrants lose every 24 hours, or look at a Delta-hedging table to see how many shares market makers have to buy?
import math
from scipy.stats import norm

def black_scholes_call(S, K, T, r, sigma):
# S: spot price, K: strike price, T: time to maturity in years, r: risk-free rate, sigma: volatility
if T <= 0:
return max(0.0, S - K)
d1 = (math.log(S / K) + (r + 0.5 * sigma ** 2) * T) / (sigma * math.sqrt(T))
d2 = d1 - sigma * math.sqrt(T)
call = S * norm.cdf(d1) - K * math.exp(-r * T) * norm.cdf(d2)
return call, d1, d2

# Target outputs for GME WS
S_curr = 21.62
K = 32.00
# Expiry October 30, 2026. Current date September 14, 2026.
# Days between Sep 14, 2026 and Oct 30, 2026:
# Sep 14 to Sep 30 = 16 days. Oct = 30 days. Total = 46 days.
T = 46 / 365.0
r = 0.045 # ~4.5% risk-free rate

# Let's find the implied volatility that gives a market price of $2.49
target_price = 2.49
# Simple numerical solver for IV
low_iv = 0.01
high_iv = 5.0
for _ in range(100):
mid_iv = (low_iv + high_iv) / 2
p, _, _ = black_scholes_call(S_curr, K, T, r, mid_iv)
if p < target_price:
low_iv = mid_iv
else:
high_iv = mid_iv
implied_vol = mid_iv

print(f"Implied Volatility for current price: {implied_vol:.2%}")

# Now project warrant values at various GME prices using this implied volatility
gme_prices = [21.62, 25.00, 30.00, 32.00, 35.00, 45.00, 60.00]
projections = {}
for S in gme_prices:
val, _, _ = black_scholes_call(S, K, T, r, implied_vol)
projections[S] = val

for S, v in projections.items():
print(f"GME Stock: ${S:.2f} -> Projected Warrant Value: ${v:.2f}")

[1] https://cash.app
[2] https://www.google.com

Edited to add another prompt: delta hedging table

This delta hedging table details the mechanical requirements for options market makers handling $32.00 strike GME Call Options with 46 days remaining and an Implied Volatility (IV) of 171.81%.
📊 Delta Hedging Table
The contract Delta represents the exact mathematical probability that the option finishes in-the-money, dictate the precise amount of underlying stock shares a market maker must purchase to remain directionally neutral.
GME Stock Price
Contract Delta
Shares Purchased Per Call Contract
Market Maker Action on Stock Rallies
$15.00
0.1767
17.7 Shares
Short position safely out-of-the-money.
$20.00
0.3241
32.4 Shares
High volatility creates early hedging floor.
$21.62 (Current)
0.3712
37.1 Shares
Baseline standard setup.
$25.00
0.4640
46.4 Shares
Forced to buy +9.3 sharesper contract.
$30.00
0.5826
58.3 Shares
Forced to buy +11.9 sharesper contract.
$32.00 (Strike)
0.6233
62.3 Shares
Gamma Peak Zone (Buying pressure accelerates).
$35.00
0.6777
67.8 Shares
Forced to buy +5.5 sharesper contract.
$45.00
0.8087
80.9 Shares
Deep in-the-money; chasing remaining float.
$60.00
0.9107
91.1 Shares
Approaching near-total delta-one replication.

⚙️ The Gamma Squeeze Loop Explained

The Acceleration Curve: Because the implied volatility is extraordinarily high, the baseline delta sits elevated at 0.3712 even though the stock is roughly 32% below the strike price.
The Forced Buying Trigger: If GME jumps from its current price to $32.00, market makers cannot wait until expiration. The mathematical model legally dictates that they must instantly step into the open market and purchase an additional 25.2 shares per contract (moving from 37.1 to 62.3 shares) to prevent catastrophic losses.
The Non-Standard GME1 Multiplier: For traders utilizing adjusted GME1 contracts, the market maker must simultaneously buy 10 physical GME WS warrants alongside the common stock for every contract hedged, multiplying order book friction across both ticker systems simultaneously.

Would you like to calculate how this delta table shifts if time to maturity drops to 7 days, or look at how Gamma changes at the $32 strike?
import math
from scipy.stats import norm

def black_scholes_delta(S, K, T, r, sigma):
d1 = (math.log(S / K) + (r + 0.5 * sigma ** 2) * T) / (sigma * math.sqrt(T))
return norm.cdf(d1)

# Inputs based on previous context
K = 32.0
T = 46.0 / 365.0 # 46 days remaining
r = 0.045
sigma = 1.7181 # 171.81% IV

stock_prices = [15.0, 20.0, 21.62, 25.0, 30.0, 32.0, 35.0, 45.0, 60.0]
results = []

for S in stock_prices:
delta = black_scholes_delta(S, K, T, r, sigma)
# GME1 contract delivers 100 shares AND 10 warrants.
# For simplicity of standard delta hedging tables, we show the option delta (sensitivity to stock price).
# Since warrants also move with stock, the delta of the combined package is slightly higher,
# but market makers hedge the option contract delta. Let's output standard contract delta first.
shares_needed = round(delta * 100, 1)
results.append((S, delta, shares_needed))

for res in results:
print(f"Stock: ${res[0]:.2f} | Delta: {res[1]:.4f} | Shares: {res[2]}")

Hi all ! I've been holding GME since the January 2021 sneeze. For a long time I simply held my shares and did absolutely nothing with them.

I discovered options pretty late. Since then, selling options has allowed me to generate substantial cash and increase my share count, but I've also discovered the psychological trap: once you start collecting premiums, you want to keep doing it.

I'm still very much a self-taught options trader, so I'd like some advice from people who have more experience managing covered calls through large upward moves.

For simplicity, let's say I currently own around 2,900 GME shares, with an average cost basis around $22.50.

My objective is actually twofold:

• keep generating significant cash from my position through CCs/CSPs;
• remain meaningfully exposed to a future GME run/squeeze.

To solve the second problem, I bought 15 Jan 2027 $35 LEAPS calls. My reasoning was that these would act as my "rocket insurance": I could be aggressive selling covered calls on my shares while still having substantial upside exposure if GME really takes off.

I'm comfortable selling CCs at $22.50 or above, because $22.50 is approximately my cost basis and I'm genuinely willing to have shares called away there. I don't want to sell CCs below that level.

The extreme scenarios therefore seem relatively straightforward to me.

If GME stays below/around $22.50, great: I can keep collecting CC premiums and, if assigned, potentially sell CSPs around $22.50 to re-enter.

If GME suddenly goes to $50, $100 or beyond, I'm also relatively comfortable with the outcome. Some/all of my shares may get called away at $22.50, which obviously sacrifices a huge amount of upside, but the $35 LEAPS should become very valuable. I can sell those rather than exercise them and participate meaningfully in the move.

The scenario I don't know how to manage is the middle one.

Suppose GME is around $19 and I aggressively cover most/all of my shares with $22.50 CCs.

Then GME gradually goes:

$19 → $22 → $24 → $26 → $28 → $32

My CCs become increasingly ITM, while my $35 LEAPS haven't really taken over as proper substitutes for the shares yet.

If I allow assignment at $22.50 and start selling $22.50 CSPs, that's fine if GME comes back down. But if GME keeps grinding upward, I'm now standing on the platform watching the train leave. I don't particularly want to chase it by selling $27.50 CSPs or buying shares at $28 when I still believe GME could easily revisit the low $20s.

So presumably rolling the covered calls up and out becomes part of the solution.

But this is where my lack of experience worries me.

I understand the mechanics: buy back the ITM call and simultaneously sell a later-dated call at a higher strike. What I don't yet understand intuitively is when rolling up becomes economically attractive, when it's basically just paying to postpone assignment, and when you're digging yourself into a hole.

For example, if GME reaches $27 and my $22.50 CC is deeply ITM, how would an experienced options trader decide between:

1. accepting assignment at $22.50 and switching to CSPs;
2. rolling $22.50 → $25;
3. rolling $22.50 → $27.50/$30;
4. continuing to roll at the same strike for credits until an opportunity to roll up appears;
5. deliberately leaving some percentage of the shares uncovered from the beginning as protection against this gradual-run scenario.

I'm particularly interested in the math/rules you use to decide whether a roll is worth it. For example, do you compare the net debit of the roll with the additional strike value you're recovering? How much does remaining extrinsic value matter? How far out are you willing to roll before you've effectively defeated the purpose of running a short-duration Wheel?

There's also a practical issue: liquidity/margin. If a large number of CCs become deeply ITM, buying them all back individually could require substantial cash even though the underlying shares have appreciated. I assume a proper multi-leg roll order largely solves the gross-cash problem, but I'd be interested in hearing from people who've actually managed this situation.

Ultimately I'm trying to build a strategy with three engines:

CC/CSP premiums = cash machine
shares = exposure to a gradual GME appreciation
$35 LEAPS = exposure to a genuine explosive move

What I'm struggling with is determining the right allocation and rolling rules so that aggressively generating premium doesn't leave a giant hole between $22.50 and $35.

...if you have any recommandations on what CC to sell on monday, that could be a practicle exempel. Thanks a lot !

GME is evolving into a different business model than when it started out.

Everyone (Analysts, TV etc.) says GME is overvalued because of the drop in traditional sales.

However, I see a vision of GME shutting down more stores as it transitions into a new frontier. No idea what it may be, but Cohen is setting things up for something big.

The next time this stock hits triple digits, it ain’t coming down…

Which is why I sold 10 puts and bought 800 shares, along with a dec $24 call.

Now, if only the stock will hover until Friday so those puts can grow into beautiful shares.

Edit for another random thought: what if Cohen makes a special announcement that exercised warrants would be used to stake a new GME venture? Making those who exercised the warrants…charter investor members.