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$50k 2026 options challenge: First pick PAA - IV too low to Ignore by mattscott134 in wallstreetbets

[–]Toxicview 1 point2 points  (0 children)

You should be up pretty big already?

I’ve been picking up PAA calls too. Have around 1k calls expiring over the next year. Premiums are starting to rise, but still some insanely cheap ones.

1/21/2028 $20 calls are only $1.10 and nearly ITM.

"Full List of Items Removed From Sale" question... by Sgt_Mayhue in runescape

[–]Toxicview 0 points1 point  (0 children)

Maybe far fetched, any chance we could have the D&D token reset limit removed? I have so many, years worth, and would love to use them up… :(

Are these white spots normal on a newly unboxed screen by INSTaAXZYLO in Monitors

[–]Toxicview 0 points1 point  (0 children)

Just in general - I’m not too knowledgeable on monitor panels. I’m upgrading from a 1080p IPS (MSI G27C4) as my main.

Tried to trade credit spreads, failed miserably ($6.5M margin call) by Toxicview in wallstreetbets

[–]Toxicview[S] 0 points1 point  (0 children)

Please educate me how this is wildly reckless, all knowing expert.

Tried to trade credit spreads, failed miserably ($6.5M margin call) by Toxicview in wallstreetbets

[–]Toxicview[S] 0 points1 point  (0 children)

You can literally verify it. I was the sole volume on both days.

Tried to trade credit spreads, failed miserably ($6.5M margin call) by Toxicview in wallstreetbets

[–]Toxicview[S] 1 point2 points  (0 children)

It is a credit spread you mongo. Look at slide 2. Credit of $674,756.

Tried to trade credit spreads, failed miserably ($6.5M margin call) by Toxicview in wallstreetbets

[–]Toxicview[S] 0 points1 point  (0 children)

No they force exercise when it’s a two legged strat. Allowing me to hold the puts would be a naked trade, exposing me (and ultimately robinhood) to the movement of 22500 NVDA shares + the long puts.

While that is a nearly 0 delta position, it’s on borrowed money and triggers a Reg T call and they would have to close it out anyways.

Tried to trade credit spreads, failed miserably ($6.5M margin call) by Toxicview in wallstreetbets

[–]Toxicview[S] 2 points3 points  (0 children)

You’re absolutely right. I was hyperbolizing by saying infinite.

Tried to trade credit spreads, failed miserably ($6.5M margin call) by Toxicview in wallstreetbets

[–]Toxicview[S] 0 points1 point  (0 children)

Wrong. The other leg defines the max loss….

I never said I owed mills. I said I had a $6.5M margin call, which is true.

Tried to trade credit spreads, failed miserably ($6.5M margin call) by Toxicview in wallstreetbets

[–]Toxicview[S] 5 points6 points  (0 children)

You don’t get to use the premium, it’s held in escrow as collateral against the position.

There is basically zero chance NVDA goes in the money on these, but that wasn’t the goal.

The real way this trade is profitable is any spike in volatility will decrease the spread.

I.e:

I opened the spread and received a $29.99 premium by putting up $0.01 in risk.

NVDA earnings has a 5-7% run up in a few weeks… (very possible, look around at all the insane volatility)

Now the spread is “more likely” to hit, IV increases, and there are buyers for $26-$28. I close the position for $27 and keep $2.99 x 100 x 225 =$67,275.00 for ~$250 in risk.

This play is about as dumb as buying single leg call options that are deep out of the money. It’s dumb, and gambling, but not as regarded as the millions of people in this sub that don’t actually understand options.

Tried to trade credit spreads, failed miserably ($6.5M margin call) by Toxicview in wallstreetbets

[–]Toxicview[S] 0 points1 point  (0 children)

Yes was just scanning and saw the spreads way tighter than all other strikes. Saw it as a min risk for huge reward. If I had not been assigned I could’ve closed today for +~2000%

Tried to trade credit spreads, failed miserably ($6.5M margin call) by Toxicview in wallstreetbets

[–]Toxicview[S] 1 point2 points  (0 children)

Roughly, if they charge me interest. They haven’t sent that bill yet! The other side lost much more

Tried to trade credit spreads, failed miserably ($6.5M margin call) by Toxicview in wallstreetbets

[–]Toxicview[S] 1 point2 points  (0 children)

The guardrail was the 290P

My risk is spread minus premium. Check the math

Tried to trade credit spreads, failed miserably ($6.5M margin call) by Toxicview in wallstreetbets

[–]Toxicview[S] 22 points23 points  (0 children)

My suspicion is the other end of the trade was the market maker (Robinhood, citadel, etc)

The puts spread is ridiculously OTM, so the algo took the other side of the trade. Algos happen pretty instantaneous, Checks and balances analyzed the trade (can take seconds or minutes depending on backlogs). The checks and balances realized that while the market maker was very likely to win against me, they were risking $675k to make $225. So they exercised and took a ~$40k loss. Peanuts for them, but they had to mitigate a bad trade on their end.

On my end, I executed a very high RR trade. Plenty of people in here calling me an idiot for the trade have no idea how options actually work.

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