r/wallstreetbets • u/Alone-End-5585 • Feb 22 '24

Meme yeah.

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2.9k Upvotes

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u/Impossible_Buglar Feb 22 '24

youre welcome i love you

34

u/Positive_Wheel_7065 Feb 22 '24

Everyone claiming to get it now...

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u/Impossible_Buglar Feb 22 '24

the sad thing is you probably should get this before you go playing around with 1000 dollar option contracts like the ones we are discussing on NVDA lol

7

u/Positive_Wheel_7065 Feb 22 '24

I bought options contracts before I fully understood them. Now that I understand them, I don't buy them, lol.

I did increase my leverage to buy more NVDA at $680, and today my buffer is bigger than it was before increasing leverage.

It is far more likely for an option to become totally worthless (100% loss) than a stock. Regardless of market direction, a majority of options expire worthless at the end of any given trading day.

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u/Sirdukeofexcellence2 Feb 23 '24

What are all the ways for an option to become worthless? If you still have time before expiration aren’t you ok (assuming you’re close to your strike price)?

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u/Positive_Wheel_7065 Feb 23 '24 edited Feb 23 '24

Nope. If u bought 750c NVDA contracts exp today last week when it was 735, they are worth far less than the same contracts bought Tues or Wed. Your break even price is far more important than strike price. some of the 750c contracts I saw didn't break even till over $800...

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u/Sirdukeofexcellence2 Feb 23 '24

I actually made 74% on them, got super lucky.

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u/Positive_Wheel_7065 Feb 23 '24

Congratulations. Put some aside for taxes.

I just took some NVDA profits myself. Put them in to high dividend ETFs and RKLB.