VAN TAKE THIS-->
C3.ai, Inc. (AI)
NYSE - NYSE Delayed Price. Currency in USD
32.09-1.90(-5.59%)
At close: December 9 04:01PM EST
36.01+3.92(+12.22%)<--------------- Most people don't know any of the facts yet.
Pre-Market:09:18AM EST
Stoney.... relax on Chewy.
I closed the other day at $32 and change, I didn't look at it yet today, $36 seems pretty ripe to sell however.
Of course it'll pullback. It was just at $28, you don't think the buyers down there won't take profits lol?
This is not a savant level observation here.
It'll easily see $32 again, I usually catch those tops correctly.
As I said, it will establish a channel and reflect the tide for a month or two now.
They are screwing your CHWY Short guy
Chewy, Inc. (CHWY)-- Keeping the price above $50. If it closes at $51 today will they really lose everything?
NYSE - NYSE Delayed Price. Currency in USD
56.30-3.80(-6.32%)
At close: December 9 04:00PM EST
50.90-5.40(-9.59%)
Pre-Market:09:12AM EST
Stoney... slow down and read the posts.
The dude bought in for $660,000.... assuming he closed, or even if he closes now, he cashed out at at least $1.6M..... ie a $1M profit.
He bought the $55 puts and sold the $50's.
It's a
bear put spread.
Do you understand this concept?
Options 101
Say you're bearish on stock STNY when it is trading at $60 per share and you think it will drop below $50.
You can create a bear put spread by buying a $57.50 put and selling a $50 put.
Our trader did this. He bought the 57.50 at $4.27 and sold the $50 at $1.63 so he's into the trade for 4.27-1.63= $2.64
The best case is if the stock drops to $50 or below obviously.
The worst-case scenario is if the stock price ends up at or above $57.50-$2.64= $54.86
Above this he loses the $2.64 or $2.64 X 2500000 = $660,000
(*250,000 because he bought 2500 contracts.)
BUT... he pockets every penny below $54.86 all the way down to $50. Intrinsic, plus he'll get a tiny premium.
Assuming this morning he sold the $57.50's for around $6.80 which they were earlier
He makes (250000x6.80)-(250000X$2.64)=
$1,040,000 in profit
This is not that hard to understand for pete sake.
How can people that have played stocks for years not understand options?!
whatever.