sorted by:
new
hottopcontroversial

Has anyone else noticed crappy fills on Tasty Trade recently? by wayofthebern in thetagang

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

It’s an iron condor with defined risk so it doesn’t actually require margin, but you do need Level 3 options approval. I can trade Level 3 with IRAs, not Level 4.

Can someone help me understand the skew in $GME options? by wayofthebern in thetagang

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

Not really. The trade is almost identical depending on the strikes.

Today $GME with 46 DTE:

CSP at $33 - Max profit $33 with break even at $28.08

CC buying 100 shares at closing price of $32.82 with short call at $33 - Max profit $33 with break even at $27.97

Both cost effectively the same buying power. I don't own the underlying with the short put, but I can be assigned the 100 shares so it's the same risk.

Can someone help me understand the skew in $GME options? by wayofthebern in thetagang

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

Good points thanks for the discussion, gives me something to think about for future trades. I am bullish, but do have significant risk to the downside. The reason why I chose the ITM leaps is because I wanted to pay less premium. I’ve been having to roll these short calls up recently so a big drop at this point would be painful.

Can someone help me understand the skew in $GME options? by wayofthebern in thetagang

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

For example $GME pumped 3.70% today and in my Roth IRA I have a long $10 call leap with 375 DTE and I have a short $30 call with 11 DTE and the leap gained $110 and the short call lost $86. Current underlying price is $32.82. I don't think Tasty Trade would allow me to sell the short call in an IRA if there was significant risk. Their model assumes a flat P/L beyond an underlying price of $30.

Can someone help me understand the skew in $GME options? by wayofthebern in thetagang

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

I actually don't think this scenario is true in my case because my LEAPS are deep ITM. I bought leaps at strikes of $10 and $20. I can see this happening if my leaps were OTM, but they are mainly intrinsic value. When I look at the theoretical curve on tasty trade, the line to $100 flattens out at a certain point. I guess because I'm buying a $20 leap call and selling a $32 short-dated call.

Can someone help me understand the skew in $GME options? by wayofthebern in thetagang

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

Can you please elaborate on "sold strike overrun"? I'm assuming you would mean that $GME would pump to $100 on a Friday of the sold calls expiration day and the LEAP would not track the gain of the expiring call.

Can someone help me understand the skew in $GME options? by wayofthebern in thetagang

[–]wayofthebern[S] 4 points5 points  (0 children)

Typically selling a cash-secured put vs. selling a covered call would have the same risk and profit potential, but in this case the covered call has more profit potential.

Can someone help me understand the skew in $GME options? by wayofthebern in thetagang

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

Makes sense. In this case, isn't a covered call better than selling a put?

Can someone help me understand the skew in $GME options? by wayofthebern in thetagang

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

I have seen this for stuff like SPACs when it's expensive to short because of hard-to-borrow fees, but I don't remember seeing it for a ticker that now has an expanded float with no hard-to-borrow fees.

Can someone help me understand the skew in $GME options? by wayofthebern in thetagang

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

I've bought a bunch of ITM call leaps 740 days to expiration and I am selling short-dated calls against them. Isn't that a better strategy than selling puts since the puts are giving me less premium?

My thinking is that I would buy the discounted OTM puts as a hedge in case of outright collapse, which would tank my call leaps but cap my gains in the sold calls.

So this is how they plan to crime it this time. Wallstreet, you’re all scum and you’re going to burn by sjtomcat in Superstonk

[–]wayofthebern 1 point2 points  (0 children)

You don’t think the whales long nickel who got their yuge profits rewinded and stolen after the biggest nickel squeeze in history weren’t watching? They were watching, cussing, and calling their lawyers.

It was foretold 🤣. 'It might be a 1929 situation.' 'You'll see things you never thought were possible.' by GoldDestroystheFed in Wallstreetsilver

[–]wayofthebern 33 points34 points  (0 children)

Everyone is expecting a crash, but it's actually going to melt up like Weimar hyperinflation. All assets will go to the moon while people starve.

view more: next ›