1000% Implied Volatility In GameStop

[.sigma]

Keep in mind that he had the fly on with the stock at 600 and it sold off to 460 and then exploded up tp 645...Not speaking for Des,but with an 86 debit,I seriously doubt he just sat there without making some gnarly adjustments along the way.That was no walk in the park

right, I did mention this scenario above, but Des lower wing was still 20pts OTM even so.. this is why he chose to do the 132C I believe, as he saw risk to the downside before the eventual up-move. But I agree with you man.

 

[taowave]

The NVDA fly was delta long...You really think you would have sat there and watch the stock trade down from 600 to 460 without doing anything?

Pure spec,but I am pretty dam sure Des either had some short stock against it,delta hedged or blew out of it...An 86 dollar debit isnt a tear up that you close your eyes and let go to zero..

Just think how much you could have made of you put the fly on with the sock at 460

Amazing call with NVDA Destriero. I couldn't make the trade because my account was no longer margin, but it looks like this one would have doubled my money. Seeing it move up to $650 over the past week was really something! Chapeau!

 

[taowave]

The 450/650/750 is a pure fly that was delta long..The fact that he chose 1x3x2 has very little to do with seeing risk to the downside..IMHO,he offset the position with some sort of short delta or blew out of it...Hes too good a trader to ride that shit down to 460...

right, I did mention this scenario above, but Des lower wing was still 20pts OTM even so.. this is why he chose to do the 132C I believe, as he saw risk to the downside before the eventual up-move. But I agree with you man.

 

[destriero]

Keep in mind that he had the fly on with the stock at 600 and it sold off to 460 and then exploded up tp 645...Not speaking for Des,but with an 86 debit,I seriously doubt he just sat there without making some gnarly adjustments along the way.That was no walk in the park

Yeah, I didn't have that on for long. Sorry, completely forgot about the trade. I closed it after the earnings report.

 

[taowave]

Thanks Bro..Guys are looking at that trade in awe,not realising that unless you left the country,that was one gnarly little fly

 

[destriero]

Thanks Bro..Guys are looking at that trade in awe,not realising that unless you left the country,that was one gnarly little fly

I didn't even remember it, but I dumped it within a few days, post-report.

Since you guys all like flies.

GOOGL:

Long the Mar19, 2021 1750/2030/2500 231 asym-fly in puts at 299.55 last. Any fill under 303 is acceptable. I am quoting it as the put spread, but ideally you'd trade the combo/synthetic by shorting two of the Mar19 1750/2030 put spreads and shorting one of the Mar19 2030/2500 call spreads.

299.55 basis Friday's close. It's going to trade to 302-303 on Tuesday open. So we can address it 15 mins after the open. Marked to the above put fly at 299.55 last.

NVDA:

Long the Apr16 450/650/750 132C asym-call fly from 85.98 last. Same conditions as above. This spread isn't going to move from Friday to Tuesday. Obv best-practice is to trade the synthetic, but we will mark it to the call fly.

I am marking both trades to Friday's close and anyone else whom would like to play can do so using Friday's closing prices as long as it's done before the futures open at 6pm ET. today. Otherwise you're gonna need to use Tuesday's prices.

GOOGL put fly: 299.55 mid.
NVDA call fly: 85.98 mid.

I own both of these, but only the GOOGL in size. The GOOGL is a $30K req so it really doesn't fit the contest, but it's my biggest position, personally. In March and other months. The March position being representative of my greeks.

$38,600 req.

I sold it post report on Feb 26 with shares at 550. It was a wash (-4, from notes). What's funny is that the GOOGL fly was my biggest winner of the quarter and was pinned to the body at OpExp.

 

[destriero]

I am strict about closing when spot trades inside my opening fill (intrinsic) on local flies (short gamma; not OTM at inception). I would never have held NVDA once it broke 536 (450 + 86 fill); barring gaps, etc.

 

[.sigma]

The 450/650/750 is a pure fly that was delta long..The fact that he chose 1x3x2 has very little to do with seeing risk to the downside..IMHO,he offset the position with some sort of short delta or blew out of it...Hes too good a trader to ride that shit down to 460...

just curious, how is it a pure fly? In my mind a “pure” fly (classic natural) is symmetric. Which would be the 550/650/750 121. But Dest fly had the downside leg 2/1 the upside leg.

I didn’t mean to say the 132 structure is why the risk was too the downside, more so because of the placements of the wings.

 

[taowave]

When I say pure fly,i mean it's not a broken wing,and the risk is the debit..

Doest matter if it 1×2×1,1×3×2 or 1x4x3,etc...as long as the OTM wing/s limit risk to the debit as opposed to being short embedded verts,I call it a pure fly..

The 450-650-750 1x3x2 breaks down to a 200 point 1x3,breakeven 750 ignoring debit/credit. (Distance between strikes/# of naked short options)

Des was long 750 wings,limiting loss to the debit..If he
Chose to reduce the 86 debit and bought the 800s,he would be synthetically short 2 750 -800 call spreads...Not a pure fly.Smaller debit,more upside risk..

just curious, how is it a pure fly? In my mind a “pure” fly (classic natural) is symmetric. Which would be the 550/650/750 121. But Dest fly had the downside leg 2/1 the upside leg.

I didn’t mean to say the 132 structure is why the risk was too the downside, more so because of the placements of the wings.

 

[JaniceOtero]

I think it’s going out of track. We need to understand the purpose of this forum. Trading needs to be done according to your understanding and comfort. Don’t focus on monetary benefits solely.