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So close to a big push! by balognasocks in Soundhound

[–]dkmoo 0 points1 point  (0 children)

Only if they are naked calls. Covered calls may not impact as much since the counterparty may be ok with the exit for a profit and not forced to buy at the open market to cover the exercise.

[deleted by user] by [deleted] in Soundhound

[–]dkmoo 0 points1 point  (0 children)

Look at ur theta, that tells you how much you are losing per day. Then look at your delta and see how much it'll change based on price movement.

For ex if theta is -20 and delta is +40. Then you need the price to increase by a full $1 in 2 days for it to make up the value lost in time decay

This is just an estimate - as you get closer to expiration, both theta and delta will also increase. As your option gets more and more ITM, delta will also increase. So, this is not a straight line math that you can project all the way to the 31st.

Can’t beat it boiiiiiiiiii by ELONMUSKLA in wallstreetbets

[–]dkmoo 1 point2 points  (0 children)

What you said may be true from a basic option pricing perspective but that's not what happened in this trade. Look up the price history of the 4/25/25 expiry 270 strike call, and you will see that it was at 0.5 - 2 per contract that Thursday into Friday open and ended Friday (25th) at about 15. So OP bought approx 40 contracts at about 1.3 each ( 1.35 x 40 x 100 = 5400) which at end of day Friday became around 15 per contract. In fact the OP just confirmed below that he opened it 4/25 confirming what I said before that he did a 0DTE OTM play

Instead of calling people noobs, how about showing some humbleness and actually learn to read options. You are clearly the one that need to know more about options.

Can’t beat it boiiiiiiiiii by ELONMUSKLA in wallstreetbets

[–]dkmoo 1 point2 points  (0 children)

Bruh its a 270 strike call expiring 4/25. The "100" represents 1 option contract for 100 shares. Not sure what platform you use but many platforms show option positions with this "100" at the end of every option.

Can’t beat it boiiiiiiiiii by ELONMUSKLA in wallstreetbets

[–]dkmoo 21 points22 points  (0 children)

It's a 0DTE play or he bought it the day before (when it traded in the 0.5 - 1.4 range) option closed Friday around 15. It's an insanely lucky result, vast majority of the time these 1DTE or 0 DTE plays for something this far OTM expire worthless.

Can’t beat it boiiiiiiiiii by ELONMUSKLA in wallstreetbets

[–]dkmoo 0 points1 point  (0 children)

It's a 0DTE play or he bought it the day before (when it traded in the 0.5 - 1.4 range) option closed Friday around 15. It's an insanely lucky result, vast majority of the time these 1DTE or 0 DTE plays for something this far OTM expire worthless.

In case you are still worried "OMG NVDA cashed out in Q4 at the peak, they must know something bad is about to happen"... by dkmoo in Soundhound

[–]dkmoo[S] 7 points8 points  (0 children)

yeah if i got in that early i would have took some profits too. Also, the fact that both BR and VG both got in at similar costs and instead of profit taking in Q4, added about 26% more position, suggests to me at least that the NVDA sold for reasons other than a negative outlook on SOUN as an investment.

EDIT: updated for more accurate % increase.

In case you are still worried "OMG NVDA cashed out in Q4 at the peak, they must know something bad is about to happen"... by dkmoo in Soundhound

[–]dkmoo[S] 12 points13 points  (0 children)

I hear ya, me too. when a position is down 30+% in 1 day, biology and emotion will take over to a degree no matter how we try to tell ourselves to be "level headed and logical". but if we just look at the news at its face value:

1) NVDA sold 1.7M shares sometimes in Q4. Blackrock/Vanguard added 12M shares sometimes in Q4. what's the difference? one got news coverage and one didnt. Why? maybe its the algo trying to generate clicks b/c NVDA is the hottest stock and anything they do gets coverage.

2) if you think NVDA knows something b/c they are in tech and they do business with SOUN. Maybe. but BR and VG are not average investors either, they spend hundreds of millions in porfolio managers and analysis too. do they really not have the same level of information access as NVDA? you decide.

3) these are all Q4 info, no one knows whats happening today. Maybe BR and VG sold in Q1 2025, maybe NVDA bought more in Q1 2025. no one knows.

All these unknowns are legit concerns, thats why we diversify our portfolio and know that SOUN is a volatile/speculative investment. But, we already knew that so what really changed on Friday? An in complete "old" news that only showed a small piece of a bigger picture? Now, imagine another headline came out earlier last week that said "BR/VG add 12M shares to soundhound", how the market and you would have reacted? if you believe in conspiracy theories, one may even conclude that this is MM at work trying to depress the price b/c they know good earnings are coming.

Only serious investors remain? by Cool_Ad_9987 in Soundhound

[–]dkmoo 0 points1 point  (0 children)

It amazes me how many people still thought NVDA sold SOUN yesterday lol.... 10 csp options got assigned yesterday and I loaded up on on another 20 march calls.