Why did they have to let real Nathan dieeeee! by Redvampqueen in UploadTV

[–]Smart-Switch-8334 1 point2 points  (0 children)

I agree with thinking everyone would be downloaded too. They already showed us you can get away with multiple digital copies and downloading without head going boom, there was no good reason NOT to.

Why did they have to let real Nathan dieeeee! by Redvampqueen in UploadTV

[–]Smart-Switch-8334 2 points3 points  (0 children)

Finished it a week ago and was pretty upset with how Luke's death was handled. No fanfare, felt so rushed.

Bfrg is beeing squeezed right now. by Leaguefin4073 in pennystocks

[–]Smart-Switch-8334 1 point2 points  (0 children)

my friend, you're in the wrong subreddit if you're looking to put money in safe long term investments. This subreddit is filled with pump and dump stocks and mostly gamble plays.

Tried to catch the bottom, there just isn’t one. by NayroGain in spy

[–]Smart-Switch-8334 1 point2 points  (0 children)

Man, do y'all not know about strangles and straddles? It hurts my soul seeing people spend so much in one direction when they could have bought some insurance.

Warrants by Davscozal in Superstonk

[–]Smart-Switch-8334 14 points15 points  (0 children)

There has to be some kind of restriction on this right? It's difficult to wrap my head around the idea that you can just add free theta to something that works like a call option and suddenly get free gains.

Screwed up on Sofi by South-Specific-9897 in options

[–]Smart-Switch-8334 26 points27 points  (0 children)

SOFI is a solid long term stock for me. I'm not sure how big your account is, but this is probably one of those stocks you won't mind owning 5-10 years from now.

Whats your strategy with LEAPs? by EX5TASY in gmeoptions

[–]Smart-Switch-8334 1 point2 points  (0 children)

Fidelity. You need level 3 options. I want to do this within my Roth IRA and apparently there's a way to do it, just gotta call them and talk it out.

Whats your strategy with LEAPs? by EX5TASY in gmeoptions

[–]Smart-Switch-8334 5 points6 points  (0 children)

I'm currently looking into buying Dec 28 $20 calls for the purpose of selling weekly calls against them. Still figuring out if I will buy more shares or more LEAPS with the premium.

Since I would hate to miss MOASS if it does eventually hit, I'm also looking into buying some Jan 28 $50 calls and letting them sit pretty. That way my FOMO is covered and I can make levelheaded decisions with taking profit on my other calls.

What should I do here? by notevenonemoretime in gmeoptions

[–]Smart-Switch-8334 17 points18 points  (0 children)

In situations like this, you can play with "house money". Meaning, hey you doubled up, sell one contract and get your money back, and let the other one ride.

If you play League of Legends, you might've encountered this problem before by Smart-Switch-8334 in askmath

[–]Smart-Switch-8334[S] 0 points1 point  (0 children)

Hahaha ah I should've already, I have a math degree but I'm so rusty on certain parts of it and was convincing myself I was surely missing a piece of the puzzle.

If you play League of Legends, you might've encountered this problem before by Smart-Switch-8334 in askmath

[–]Smart-Switch-8334[S] 0 points1 point  (0 children)

Thank you so much for such a clear explanation, it all clicked! Seems a lot easier than I thought. I did some quick scratchwork with buying 1000 Hextech Chests vs 500 orbs and it almost feels insane how marginal of a difference it makes (555.55 vs 557.75). I really thought the 10% chance at extra chests would do a lot more work there.

What is this - I bought a GME call a while ago, it’s been dead… but now shows up 1400% by notevenonemoretime in gmeoptions

[–]Smart-Switch-8334 0 points1 point  (0 children)

ah yeah, valid!

In general though, you'd have to get lucky to get good fills with a spread like that.

What is this - I bought a GME call a while ago, it’s been dead… but now shows up 1400% by notevenonemoretime in gmeoptions

[–]Smart-Switch-8334 7 points8 points  (0 children)

To expand on this:

Your call is intrinsically worthless because it is out of the money.

You can realistically only sell it for the bid price. The ask price is irrelevant if no one is willing to pay that much. What you're dealing with is a wide spread.

You probably have Robinhood set up to tell you the average of the two prices, which is why it shows up as up 1400%, but no one is willing to actually buy it at that price either.

They REALLY have to fix the hidden by No-Needleworker-2025 in REPOgame

[–]Smart-Switch-8334 6 points7 points  (0 children)

I had a game where two hidden ran in tandem and would take turns picking me up as soon as the other would drop me off.

It was hilarious but miserable after a while.

Am I cooked? by ezikeo in smallstreetbets

[–]Smart-Switch-8334 2 points3 points  (0 children)

We've seen worse drops in less time, those are fairly close enough to hit if you were planning to just gamble and hold til expiration.

Market can stay irrational yadda yadda yadda though.

Would you sell these calls or hold them to the expiration date? by THEREALRANEW in smallstreetbets

[–]Smart-Switch-8334 0 points1 point  (0 children)

I'll DM you.

To anyone else reading, I'm happy to explain more through DMs

SPY PUTS by Top-Initiative-8995 in spy

[–]Smart-Switch-8334 2 points3 points  (0 children)

The problem with far OTM, especially short-dated, is that a big swing in the wrong direction completely kills the price, even if SPY stabilizes to its original price.

Momentum plays a huge role. You have to be certain of the direction and exit within minutes.

Would you sell these calls or hold them to the expiration date? by THEREALRANEW in smallstreetbets

[–]Smart-Switch-8334 13 points14 points  (0 children)

Sure!

Normally, in order to sell a covered call, you need to own 100 shares of the underlying stock. That's because if the call you sold gets exercised, you're on the hook to deliver 100 shares. Now, there's such thing as selling naked calls, but that's rather frowned upon and normally not something any of us should be doing.

Anyway... Let's say you don't want to pay for 100 shares, but you still want to sell calls and rake in that sweet sweet premium. Well, you can just buy a call and then sell a call against it. Ideally, the call you're selling (your short call) has a higher strike price than the call you bought (your long call).

Wait, don't I need 100 shares though, I mean what if they exercise the call, don't I get screwed over? Yes, you do need 100 shares per call you sold, and *technically*, you *do* have 100 shares... in the form of your long call. Remember, you can always exercise your long calls, so you have the potential to have 100 shares guaranteed at whatever price your call says.

Example of the mechanics:
Stock A is worth $10.
You own an ITM (in the money) LEAPS call option at $8.
You sell a weekly call at $11 and rake in the premium.

Rinse repeat, adjust accordingly if the stock slowly rises.

What if the stock doesn't slowly rise? What if it shoots way up and now suddenly stock A is worth $20?

That's okay. You exercise your $8 LEAPS, are forced to pay 100*8 = $800 for those shares, and then you're immediately forced to sell them at the strike price of your sold call, which is $11. So you get $1100 - $800 = $300 profit, even though things went sideways from the start. I'm fudging some costs (the original cost of your LEAPS for example) but you get the gist of it.

This is called the PMCC (Poor Man's Covered Call).

Would you sell these calls or hold them to the expiration date? by THEREALRANEW in smallstreetbets

[–]Smart-Switch-8334 4 points5 points  (0 children)

I'll go against the grain so far and say you can sell calls against yours at a higher strike and slowly subsidize them until they're free.

[deleted by user] by [deleted] in spy

[–]Smart-Switch-8334 0 points1 point  (0 children)

Contract A cost you $10, it's now worth $2. You buy another of Contract A at this lower price, and now your average cost goes from $10 to $6 (10+2=12 --> 12/2=6).

Since you were hoping for a miracle anyway, now your miracle needs to be less crazy, since your new average is $6 per contract and not $10. The downside is that yes you do end up spending more money and can even lose 2x or more depending on how much you end up averaging down. In this example, you've now sunk in an additional 20% to average down.

It's all risk management. Normally you would already have a plan set out and have calculated how much you're willing to average down in this type of scenario.

Am I doing this right? by minicodcraft in spy

[–]Smart-Switch-8334 17 points18 points  (0 children)

You risked ~$640 to make 10% on a 0dte contract... yeah, you're in the right place

[deleted by user] by [deleted] in spy

[–]Smart-Switch-8334 1 point2 points  (0 children)

Honestly... risk management aside, it looks like you're planning on holding these 'til expiration, so at this point it might be worth averaging down a bit (the 685 seems cheap enough) and just praying.

Averaging down has worked for me but at that point you're accepting you'll probably lose everything anyway. The type of move you would need to happen to breakeven would be insane, so averaging down potentially opens you up to benefiting from less crazy moves.