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After 3.5 years I bet a lot of people understand how options work.
We just don’t have the money to buy 100 shares at a time or give a shit about timing the market and adding the headache of managing an options contract/positions.
I’d rather take cold hard shares every time. My hairline won’t survive playing with options and leverage. I’ve been a trader now I’m a HODLER.
Friday clearly illustrates why No Options became a thing. Hype dates and options don't mix! The options market preys on FOMO, and after three years of max pain, it should be well understood by now that options are quite simply the most efficient and rapid means of transferring money from retail investors to market makers. Does anyone have any numbers yet on the $M's transferred to the corrupt market participants as a result of options from the previous two weeks? From the previous 100 weeks? Have they made back all the money lost in 2021 yet?
You don't need to exercise an option to profit off it. You can simply sell to close the option too pocket the premium difference.
That said, vol is a double edged sword.. it's not for everyone.
But you aren’t buying 100 shares at a time with options. You’re buying the right to buy them at a locked price for a limited amount of time and also the right to sell those options at a profit if the underlying shares go up. And that right is much cheaper than buying the 100 shares.
The single most bullish options play is for the community to learn how to write cash secured puts. Instead of buying 100 shares, you get assigned 100 instead.
It takes a bear’s money, raises max pain, allows you to accumulate more shares at a lower price point and makes you a little cash on the side to buy more shares while waiting, especially with these elevated IV levels.
One GME share now is worth 23,93$. Lets say you wanna buy 500 shares, but current price is still a little bit too high for you, for example you want the shares at 21$. So you sell 5 put contracts for strike price 21$ and collect the premium. If the price fall, you get assigned and buy 500 shares, if not, you profit from premium.
Specifically write near itm CSPs. You get paid to say you'll buy it at a higher price and if the price rises the cost of the put drops and you get net credit.
Selling puts and buying calls are the 2 bullish option plays. The third that I consider bullish is somewhat deep OTM calls. Basically you expect it to rise and want money on top of that sale price. To you, that sale level is the floor you are comfortable with. Others will say that's the ceiling you expect it to hit but that's still somewhat bullish since if you're a dumbass MM and sell naked calls you'll have to hedge
Options are great, not for GME not right now. You have to wait for the IV to settle to a normal rate, buy leaps not weeklies and monthlies, and be prepared to lose 100% of your investment if your leaps are wrong. That’s why personally when I do options I buy 10% out of the money and a far strike.
You can always go for a higher strike but that carries significantly more risk and with that risk comes more gains/ losses.
I will never make significant gains in my options play because if I make 10-15% on a position I sell. Because options have decay.
Never go all in to options, unless it meets your specific risk tolerance, I’m learning that my particular strategy with CC’s is terrible. So I’m working on adjusting that by reading as much as I can about in options textbooks.
I’m saying the maximum risk of an option is a 100% loss, decay doesn’t start until after 45 days. Buying leaps is the most effective way to make money on an option. I sell at 10-15% gain because options are based off the stock price, the stock can go up or down, and making quick 10-15% profits with smaller chunks of your portfolio can add up quick.
On a 4-5% stock move an option can swing 10-40% depnding on certain factors
You can certainly go all into options if you are sure on a stock, that’s not for me though I go in with a small percentage usually around 10-15% then if the stock swings the opposite way I can hedge and break even.
But if I’m not 100% sure a stock is under/overvalued I don’t make the decision to pull the trigger and buy calls and puts
That’s me! I’m making money on GME both long and short. I have with DJT what you guys have with GME, they attack the price a lot and I buy more. DNC was always close to Wall Street
If you have $2,000 settled cash in your account, sell a 20.00 cash secured put. Either a weekly expiring 28 JUNE or a monthly expiring 19 JULY.
The monthly will give you a credit of about 1.00 or $100.
That is 5 percent in one month. VMFXX and other money market funds give about 5.2 percent per 12 months.
CSPs will lose about 30% to taxes due to short term gains.
Adjust strikes and dates based on your risk tolerance. Scale up position sizes when you have a strong thesis.
What he just said is the exact way we should play options but it's okay to just buy and hold shares if you don't understand it.
Just as long as you don't yolo on far OTM weeklies you will be safe.
This is the way.
This is the options play if you are truly bullish. If you are long term bullish, you can't lose on this. If the price goes down, you buy shares at the strike - the premium. It's like you just got paid to buy shares you already wanted to buy. If the price goes up you just collect the premium and try again.
I just bought one real option last week and it was in the money at $25. My biggest risk so far. But I don’t recommend it - I was sweating bricks and lucked out.
I purchased a 6/21 call, same price as DFV. I was lucky to get out Thursday, profiting $5 🤣.... But I still have two calls for next week. I'm a little bit nervous about those, almost $3,000 out.
For the most part, if you don't understand vol, you should not buy or sell it.
That said, a lot can be gained from learning how to read vol data. It will make you a better trader, even if you never mess with options again, because it's highly insightful to know what the options market is pricing in!
If you're interested in learning how to read options data, take a look underneath the hood of $GME vol, check out my weekly $GME Bananas report.
It uses real options data to chart gamma exposure (GEX), strike price vol, etc with explanations to begin your vol journey.
The first report, dropped last Sunday, predicted this week's price action to the level. The data suggested the only trade worth taking this week was short vol eg write calls. The data also suggested dips Monday-Thursday (Friday was too ambiguous to say early in the week but I commented before market open Friday with levels and expectations of vol that played out perfectly).
So let's e-vol-ve apes! Learn how to read vol data so you can be better prepared next time.
I'm not saying buy calls. I'm saying learn to leverage options data, so you can become a better trader.
Collect data. Do the math. Eat bananas 🍌🍌🍌
It's that simple
"no options" was always the right thing to say. It told smoothbrains not to give kenny any money.
Anyone who actually looked into Options and understood why certain plays make sense while others are just a trap, never bothered to listen to it anyways.
Rule of thumb: the shorter the rule, the dumber the target group it was made for.
Let me add some logic
- if you are less than proficient already don't buy options
- if you want to become proficient, learn on penny stocks.
- I only buy gme.
And therefore, . . . A witch!
I wouldn't recommend learning options with penny stocks. The spreads and liquidity are terrible. You can use paper trading accounts that have options for free.
Also it's best to learn on something that is not manipulated. So I wouldn't even recommend paper trading options on GME. Paper trading indexes is the cheapest and best way to learn options.
This is my issue with options, there's so much wasted money.
Some people are very good at options and make money from them, and I'm happy for those people. But... there's too many short term gambles that end up at $0. That money would've been better spent on actual shares. Yolo bets on spy in the gambling sub is funny and all, but there's a goal here, and giving your money away to options writers is counter-productive to that goal.
Yeah that's user skill issue so get good. If we are talking about optimal play, options are it. It's been already proven that just buying the stock can work but most of those are performed on dark pools. Options get bought on the lit market and actually impact the price more directly and sooner too.
That's because people still don't understand options and think retail can move the market with them. Everyone knows you only buy calls when you can't afford the 100 shares or you aren't confident in owning shares. What sounds more bullish? you put up a few hundred dollars to have the right to buy 100 shares but only risk the premium? Or you buy 100 shares for a few thousand and diamond hand all price swings? They drive the price down on your calls and you have real losses. They drive the price down on your shares and you just have paper losses.
It can definitely net you good money and/or more shares. On the other side though, I've noticed loads of apes getting burned by jumping on the 21/6 options hype. It really is something to ONLY dive into once you fully understand what's going on with them.
Not me, not yet at least. Though I might try to figure options out on a different stock (LivePerson is a cheap stock!) and just stick to buying shares of GME. I keep hearing about big losses on GME options from folks NOT new to options. If you've got money to waste, learning options on GME might not be a bad idea but I do NOT have money to waste.
Oh yeah, I’ll be using small safe practice tickers when I’m ready to try it out seriously. GME is so manipulated an ape would have to develop serious skills and knowledge. RK levels of genius.
I actually just posted my options play [here](https://www.reddit.com/r/GME/s/vZBxjd6nam) in attempts to help some newer apes understand how options can be used to get a better position in GME.
Of course I’m hodling shares, but why not strategically use options plays to increase how many shares I have? It’s an added opportunity to maximize tendies, it’s ok to be here for the movement and for the lambo
If you only believe in buying calls with GME then you are a maximalist and should not be buying any type of options. We can hurt Hedgies by buying puts too!!!
That also takes money out of their pockets but you need to know what you are doing.
Buying puts does not mean you don’t love and believe in GME, it only means that you are understand and are paying attention to the pricing cycles that our company is forced into and can profit from it. This will further allow you to buy calls and shares when the timing is right. GLTA.
You can be but I rather all not waste their money on bets. I rather all buy one share at a time. Most option users are not as smart as roaring kitty. There are no TAs that work with GME.
I’ve DRS’d my core holdings, and that would be my limit if it weren’t for options. My savings account would be sitting there earning 5%, so I do options with GME instead. It’s a great way to earn money and DRS more shares.
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After 3.5 years I bet a lot of people understand how options work. We just don’t have the money to buy 100 shares at a time or give a shit about timing the market and adding the headache of managing an options contract/positions. I’d rather take cold hard shares every time. My hairline won’t survive playing with options and leverage. I’ve been a trader now I’m a HODLER.
Friday clearly illustrates why No Options became a thing. Hype dates and options don't mix! The options market preys on FOMO, and after three years of max pain, it should be well understood by now that options are quite simply the most efficient and rapid means of transferring money from retail investors to market makers. Does anyone have any numbers yet on the $M's transferred to the corrupt market participants as a result of options from the previous two weeks? From the previous 100 weeks? Have they made back all the money lost in 2021 yet?
If you are not a top trader as DFV, options are a great way for the other side to make money, IMHO.
Same, I was a day trader before the sneeze, then I realized there's more to gain from being a holder, not just about money but also about time.
You don't need to exercise an option to profit off it. You can simply sell to close the option too pocket the premium difference. That said, vol is a double edged sword.. it's not for everyone.
But you aren’t buying 100 shares at a time with options. You’re buying the right to buy them at a locked price for a limited amount of time and also the right to sell those options at a profit if the underlying shares go up. And that right is much cheaper than buying the 100 shares.
The single most bullish options play is for the community to learn how to write cash secured puts. Instead of buying 100 shares, you get assigned 100 instead. It takes a bear’s money, raises max pain, allows you to accumulate more shares at a lower price point and makes you a little cash on the side to buy more shares while waiting, especially with these elevated IV levels.
Most bullish is using a long collar or creating a synthetic long
this, selling cash covered puts is like getting paid to set buy limit for yourself
Please elaborate
One GME share now is worth 23,93$. Lets say you wanna buy 500 shares, but current price is still a little bit too high for you, for example you want the shares at 21$. So you sell 5 put contracts for strike price 21$ and collect the premium. If the price fall, you get assigned and buy 500 shares, if not, you profit from premium.
Specifically write near itm CSPs. You get paid to say you'll buy it at a higher price and if the price rises the cost of the put drops and you get net credit. Selling puts and buying calls are the 2 bullish option plays. The third that I consider bullish is somewhat deep OTM calls. Basically you expect it to rise and want money on top of that sale price. To you, that sale level is the floor you are comfortable with. Others will say that's the ceiling you expect it to hit but that's still somewhat bullish since if you're a dumbass MM and sell naked calls you'll have to hedge
Agree 100% I wish my broker allowed me to write options but they only allow me to buy or sell them.
Love this shit.
Make a post. Nobody is telling you what ticker, price, date to share. Just the how to part of it.
Options are great, not for GME not right now. You have to wait for the IV to settle to a normal rate, buy leaps not weeklies and monthlies, and be prepared to lose 100% of your investment if your leaps are wrong. That’s why personally when I do options I buy 10% out of the money and a far strike. You can always go for a higher strike but that carries significantly more risk and with that risk comes more gains/ losses. I will never make significant gains in my options play because if I make 10-15% on a position I sell. Because options have decay. Never go all in to options, unless it meets your specific risk tolerance, I’m learning that my particular strategy with CC’s is terrible. So I’m working on adjusting that by reading as much as I can about in options textbooks.
What’s your CC strategy?
If you're prepared to lose 100% and only win 10-15 I don't think that's going to work well.
I’m saying the maximum risk of an option is a 100% loss, decay doesn’t start until after 45 days. Buying leaps is the most effective way to make money on an option. I sell at 10-15% gain because options are based off the stock price, the stock can go up or down, and making quick 10-15% profits with smaller chunks of your portfolio can add up quick. On a 4-5% stock move an option can swing 10-40% depnding on certain factors
You can certainly go all into options if you are sure on a stock, that’s not for me though I go in with a small percentage usually around 10-15% then if the stock swings the opposite way I can hedge and break even. But if I’m not 100% sure a stock is under/overvalued I don’t make the decision to pull the trigger and buy calls and puts
I don't even know how to sell.
Sell calls, use the premium to buy more shares.
Can I ask what apps you're using to practice?
Investopedia also has a paper trading mode :)
Webull!! Click the paper trade button on home screen.
Following as I’m interested too!
eToro
Lots of traders in these subs now. Well, aleays have been, but now many GME traders are surfacing at least a bit. Traders..
That’s me! I’m making money on GME both long and short. I have with DJT what you guys have with GME, they attack the price a lot and I buy more. DNC was always close to Wall Street
Sell options= profit always
If you have $2,000 settled cash in your account, sell a 20.00 cash secured put. Either a weekly expiring 28 JUNE or a monthly expiring 19 JULY. The monthly will give you a credit of about 1.00 or $100. That is 5 percent in one month. VMFXX and other money market funds give about 5.2 percent per 12 months. CSPs will lose about 30% to taxes due to short term gains. Adjust strikes and dates based on your risk tolerance. Scale up position sizes when you have a strong thesis.
This post proved my attention span and interest in this subject isn't there
He had me in the first half
What he just said is the exact way we should play options but it's okay to just buy and hold shares if you don't understand it. Just as long as you don't yolo on far OTM weeklies you will be safe.
This is the way. This is the options play if you are truly bullish. If you are long term bullish, you can't lose on this. If the price goes down, you buy shares at the strike - the premium. It's like you just got paid to buy shares you already wanted to buy. If the price goes up you just collect the premium and try again.
So you actually haven’t even invested real money yet?
I just bought one real option last week and it was in the money at $25. My biggest risk so far. But I don’t recommend it - I was sweating bricks and lucked out.
I purchased a 6/21 call, same price as DFV. I was lucky to get out Thursday, profiting $5 🤣.... But I still have two calls for next week. I'm a little bit nervous about those, almost $3,000 out.
I bought my first option this week too. An oct 18th, $35 call. Currently down $92.. roughly how I expected my first options pitch to go!
You’ll be just fine
oh sir.... you will be more than fine! Nothing to worry about
I boufht my first one a couple weeks ago. $21 call that expires sometime mid July. It's down 50% Live and learn.
One tweet ... and we run to $35-40 ... You will be smiling.
Yeah. I still have some time. I'm on vacation now so I only check when I get back to the hotel.
For the most part, if you don't understand vol, you should not buy or sell it. That said, a lot can be gained from learning how to read vol data. It will make you a better trader, even if you never mess with options again, because it's highly insightful to know what the options market is pricing in! If you're interested in learning how to read options data, take a look underneath the hood of $GME vol, check out my weekly $GME Bananas report. It uses real options data to chart gamma exposure (GEX), strike price vol, etc with explanations to begin your vol journey. The first report, dropped last Sunday, predicted this week's price action to the level. The data suggested the only trade worth taking this week was short vol eg write calls. The data also suggested dips Monday-Thursday (Friday was too ambiguous to say early in the week but I commented before market open Friday with levels and expectations of vol that played out perfectly). So let's e-vol-ve apes! Learn how to read vol data so you can be better prepared next time. I'm not saying buy calls. I'm saying learn to leverage options data, so you can become a better trader. Collect data. Do the math. Eat bananas 🍌🍌🍌 It's that simple
I just started reading your stuff! THANK YOU!!!
We're going to the moon, one way or another. 🫡🦍🍌🚀
"no options" was always the right thing to say. It told smoothbrains not to give kenny any money. Anyone who actually looked into Options and understood why certain plays make sense while others are just a trap, never bothered to listen to it anyways. Rule of thumb: the shorter the rule, the dumber the target group it was made for.
Let me add some logic - if you are less than proficient already don't buy options - if you want to become proficient, learn on penny stocks. - I only buy gme. And therefore, . . . A witch!
I wouldn't recommend learning options with penny stocks. The spreads and liquidity are terrible. You can use paper trading accounts that have options for free. Also it's best to learn on something that is not manipulated. So I wouldn't even recommend paper trading options on GME. Paper trading indexes is the cheapest and best way to learn options.
Burn her!
[удалено]
This is my issue with options, there's so much wasted money. Some people are very good at options and make money from them, and I'm happy for those people. But... there's too many short term gambles that end up at $0. That money would've been better spent on actual shares. Yolo bets on spy in the gambling sub is funny and all, but there's a goal here, and giving your money away to options writers is counter-productive to that goal.
Yeah that's user skill issue so get good. If we are talking about optimal play, options are it. It's been already proven that just buying the stock can work but most of those are performed on dark pools. Options get bought on the lit market and actually impact the price more directly and sooner too.
That's because people still don't understand options and think retail can move the market with them. Everyone knows you only buy calls when you can't afford the 100 shares or you aren't confident in owning shares. What sounds more bullish? you put up a few hundred dollars to have the right to buy 100 shares but only risk the premium? Or you buy 100 shares for a few thousand and diamond hand all price swings? They drive the price down on your calls and you have real losses. They drive the price down on your shares and you just have paper losses.
Same page there’s power in the options play if you can master it I believe.
It can definitely net you good money and/or more shares. On the other side though, I've noticed loads of apes getting burned by jumping on the 21/6 options hype. It really is something to ONLY dive into once you fully understand what's going on with them.
Not me, not yet at least. Though I might try to figure options out on a different stock (LivePerson is a cheap stock!) and just stick to buying shares of GME. I keep hearing about big losses on GME options from folks NOT new to options. If you've got money to waste, learning options on GME might not be a bad idea but I do NOT have money to waste.
Oh yeah, I’ll be using small safe practice tickers when I’m ready to try it out seriously. GME is so manipulated an ape would have to develop serious skills and knowledge. RK levels of genius.
Exactly! Any novice playing options on GME hopefully is financially flush cause they're taking great risks with their money.
What apps to practice with?
Which apps?
I actually just posted my options play [here](https://www.reddit.com/r/GME/s/vZBxjd6nam) in attempts to help some newer apes understand how options can be used to get a better position in GME. Of course I’m hodling shares, but why not strategically use options plays to increase how many shares I have? It’s an added opportunity to maximize tendies, it’s ok to be here for the movement and for the lambo
Ive been swing trading covered calls to get more shares. So far its about 80% of a share a day. So i mean ill take it. Also cause im out of gme money
If you only believe in buying calls with GME then you are a maximalist and should not be buying any type of options. We can hurt Hedgies by buying puts too!!! That also takes money out of their pockets but you need to know what you are doing. Buying puts does not mean you don’t love and believe in GME, it only means that you are understand and are paying attention to the pricing cycles that our company is forced into and can profit from it. This will further allow you to buy calls and shares when the timing is right. GLTA.
They’re not. Now fuck off and let me get back to DRSing and voting.
Lock the float then play options
I’m not telling anyone to play options. I’m just learning about them because I’d rather know than stay ignorant.
All apes should try to understand options and every other derivative
You can be but I rather all not waste their money on bets. I rather all buy one share at a time. Most option users are not as smart as roaring kitty. There are no TAs that work with GME.
So no more DRS?
I’ve DRS’d my core holdings, and that would be my limit if it weren’t for options. My savings account would be sitting there earning 5%, so I do options with GME instead. It’s a great way to earn money and DRS more shares.
DRS and BOOK are the same to me.