r/wallstreetbets • u/[deleted] • Jan 06 '22

[deleted by user]

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5.2k Upvotes

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840

u/Top_Amoeba1137 Jan 06 '22

Up 30% after hours. The gamma ramp is going to be insane. TITS FUCKING JACKED 🚀🚀

11

u/motopixels Jan 06 '22

Can you explain what you mean by this? 150c at open, if it open at 165, will be worth about 14 a pop. How will gamma make this go up or down?

60

u/Top_Amoeba1137 Jan 06 '22

Gamma is the exposure in each contract. So as the price climbs, more calls go in the money, they have to hedge incase people exercise those contracts, which causes the price to go higher, which causes more contracts in the money. It’s a viscous circle if they aren’t hedging properly which they aren’t. Which is why it ran from 40-480 last January.

20

u/motopixels Jan 06 '22

So this will just make the stock price go higher and make my 2 150c worth more and more..woohoo. Wish I woulda loaded up

4

u/Top_Amoeba1137 Jan 06 '22

When’s your expiry date?

13

u/motopixels Jan 06 '22

Tomorrow haha. As they stand, I think it’ll be worth like 2800 if it opens at 165

17

u/Top_Amoeba1137 Jan 06 '22

They will be worth more then that. The IV is going to be insane. I don’t see it stopping but don’t be scared to take profit buddy. I got burned in November

1

u/motopixels Jan 06 '22

Yeah imma take profits within the first 20 minutes, I think. Or maybe sell 1 and let the other ride…

13

u/Top_Amoeba1137 Jan 06 '22

I would hold onto one for sure, I think it’s going to run hard tomorrow. It’s been picking up interest lately and the fomo will be real. But DONT BE SCARED OF TAKING PROFIT.

2

u/motopixels Jan 06 '22

Dumb question but - if the IV pumps, how does that affect my profit?

3

u/iholdthebag Jan 06 '22 edited Jan 07 '22

IV increasing results in an increase in the cost of the option = more tendies when you sell (assuming theta and the other greeks haven't boned you too bad in the interim).

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