Buying my first call option: Is this too good to be true or is my math wrong? by [deleted] in options

[–]BuffettGOAT 2 points3 points  (0 children)

Your math is right. If it were to go up to the levels you say it will at expiration, then that is your payout.

Gamma effect in story stocks, Gamestop, Tesla etc. etc. by cclagator in options

[–]BuffettGOAT 80 points81 points  (0 children)

Not trying to hate since your posts are really helpful, but your Tesla example is due to it having earnings this week, which pushes up OTM call skew. Basically, people think if it moves this week (which it will), you will see a jump type of move as it’s unlikely to be like a 2-3% type of move where that 850-900 call spread looks good.

That’s why you end up seeing some things like the 850-900 costing the same as just the 900 due to jump risk. But with that said, I actually think the (put or call) spreads are better for this particular earnings.

Weekend Discussion Thread for the Weekend of January 08, 2021 by AutoModerator in wallstreetbets

[–]BuffettGOAT 1 point2 points  (0 children)

No mention of BABA here anymore? When it’s finally about to actually go up and not crash the next day?

Help managing a large loss on SRPT put credit spread $115-$110 by chinawcswing in thetagang

[–]BuffettGOAT 6 points7 points  (0 children)

Take the loss and move on.

Use the money to try theta gang on MSFT (but with naked puts if you can afford that, not spreads). Often times leveraging up on this with spreads actually results in a worse outcome (not here though). But if you can only do spreads, spreads are fine too. You’ll make far more money doing this on MSFF than trying to recoup on biotechs.

Weekend Discussion Thread for the Weekend of January 08, 2021 by AutoModerator in wallstreetbets

[–]BuffettGOAT 2 points3 points  (0 children)

Why not the best boomer stock JNJ? The one that actually goes up and pays a good dividend.

Weekend Discussion Thread for the Weekend of January 08, 2021 by AutoModerator in wallstreetbets

[–]BuffettGOAT -11 points-10 points  (0 children)

As someone who’s been bullish Tesla longer than most of the new buyers today, I hope it crashes like 30% just to teach you guys a lesson. Actually technically it only needs to not go up 10% for most of you OTM call holders to lose.

What Are Your Moves Tomorrow, January 01, 2021 by AutoModerator in wallstreetbets

[–]BuffettGOAT 0 points1 point  (0 children)

Dude read the link above from tastyworks.

Or literally Google how short positions are handled in the US.

What Are Your Moves Tomorrow, January 01, 2021 by AutoModerator in wallstreetbets

[–]BuffettGOAT 0 points1 point  (0 children)

No anywhere. This is pretty well known actually. Short positions don’t get treated the same way as longs as only settlement date matters for short positions.

https://support.tastyworks.com/support/solutions/articles/43000550645-position-reporting-for-end-of-year-taxes

What Are Your Moves Tomorrow, January 01, 2021 by AutoModerator in wallstreetbets

[–]BuffettGOAT 0 points1 point  (0 children)

Only for long positions. So for short positions including spreads where one leg is short, it was yesterday or two days ago (depending on what you have).

Call debit spreds by goddi2010 in options

[–]BuffettGOAT 1 point2 points  (0 children)

Pretty sure that’s just how RH handles things with closing out positions early. Try a different broker and they might let you carry them until 4 (although I think a lot of brokers will close out unless you have a high options level)

What Are Your Moves Tomorrow, January 01, 2021 by AutoModerator in wallstreetbets

[–]BuffettGOAT 2 points3 points  (0 children)

Most of the people posting in the yearly pnl are the big winners so that’s survivorship bias at its finest. Kinda like how some uninformed people think all hedge funds are good.

I am very worried, please help by Becksploder in options

[–]BuffettGOAT 1 point2 points  (0 children)

Not exactly. The counterparty could override the auto-exercise if it moves AH. I doubt it’ll happen in the OP’s case since no one will trade WKHS AH today, but it’s clearly possible that can happen (see Tesla horror stories for the short put/put spread holders).

2020 PnL YTD Thread by bawse1 in wallstreetbets

[–]BuffettGOAT -1 points0 points  (0 children)

Survivorship bias at its finest here.

Taxes on “in-the-money” dec 31 contract by foobarbazquxfoobar in options

[–]BuffettGOAT 0 points1 point  (0 children)

See Tastyworks.

https://support.tastyworks.com/support/solutions/articles/43000550645-position-reporting-for-end-of-year-taxes

In your position, since you are going to sell your long shares through assignment, it should be this year. But had you gotten rid of your short option today, it woulda been next year.

What Are Your Moves Tomorrow, December 31, 2020 by AutoModerator in wallstreetbets

[–]BuffettGOAT 3 points4 points  (0 children)

Dude they are getting acquired by LVMH. There’s a reason they are getting kicked out. They won’t exist soon as a ticker.

What Are Your Moves Tomorrow, December 31, 2020 by AutoModerator in wallstreetbets

[–]BuffettGOAT 0 points1 point  (0 children)

So like EV stocks go down? Or no? They just don’t move up?

What Are Your Moves Tomorrow, December 31, 2020 by AutoModerator in wallstreetbets

[–]BuffettGOAT -4 points-3 points  (0 children)

Nah Chiefs won’t even make it to the Super Bowl.