So I shorted some $459 QQQ calls expiring on 5/15 priced at $1.20. NVDA was reporting earnings that day but I thought I was safe because it was after the close. At 3:50 pm they were trading at about $0.30 and the qqqs were at $454 well below the strike price. It was weird to see them at even $0.30 this close to closing. Then they started to fly. The price of QQQ was not moving but the options jumped so I got out at about $1.00 wiping out almost all of my profit. The QQQs started to head up, being around $456 at 4:15 closing for ETFs. Still well below the strike price. But the last print I saw on the option was $0.98. If I had held it and it closed at $456 against my $459 strike wouldn't it expire worthless and I get the full $1.20 per contract? Thousands of idiot gamblers seem to have lost on this trade but I want to make sure I completely understand this, even though it will probably never happen again.
I got robbed by Tik Tok traders!!
- Thread starter spinn
- Start date
Because it can't POSSIBLY be his. So, you know - TikTok. Or r/wsb. Or JPOW. Or, or, must be those evil market makers that do whatever mysterious things they do (aside from robbing innocent traders who only wanted to short some calls.)
So you shorted a volatile stock into earnings.
And you thought you were safe "because it was after the close".
So you stayed in for 25% of the return by exposing yourself to 100% of the risk.
And... the fact that it felt weird, or off to you didn't trigger a thought process?
Hmm. I say again, hmm.
Oh, it will certainly happen again.
You believe that shorting options into earnings without protection is a good idea, don't know that your position can be exercised after the close, keep holding risk after you got most of the reward - and think that people who bet against all of that are idiots.
Please let me know when you do it again; I'd LOVE to take the "idiot" side against you as often as possible.
And you thought you were safe "because it was after the close".
So you stayed in for 25% of the return by exposing yourself to 100% of the risk.
And... the fact that it felt weird, or off to you didn't trigger a thought process?
Hmm. I say again, hmm.
Oh, it will certainly happen again.
You believe that shorting options into earnings without protection is a good idea, don't know that your position can be exercised after the close, keep holding risk after you got most of the reward - and think that people who bet against all of that are idiots.
Please let me know when you do it again; I'd LOVE to take the "idiot" side against you as often as possible.
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So you shorted a volatile stock into earnings.
And you thought you were safe "because it was after the close".
So you stayed in for 25% of the return by exposing yourself to 100% of the risk.
And... the fact that it felt weird, or off to you didn't trigger a thought process?
Hmm. I say again, hmm.
Oh, it will certainly happen again.
You believe that shorting options into earnings without protection is a good idea, don't know that your position can be exercised after the close, keep holding risk after you got most of the reward - and think that people who bet against all of that are idiots.
Please let me know when you do it again; I'd LOVE to take the "idiot" side against you as often as possible.
Another angry genius who is losing money trading. Thanks for stopping by. I traded QQQs not NVDA. BTW my win rate is around 90%, is yours?
The point is that the mover was NVDA AH which has a 6% weighting in cubes and all the beta RV as a result of the earnings beat. You got fcked bc you haven't a clue what you're doing.
They treat the call as a digital and it doesn't matter what vol-line prints as it's not going to zero before such a critical SN-report.
Rookie mistake. Yeah, I bet you are 90% hit rate at 10X risk. Do the math.
A nearly 20-year member on this forum, and you come up with this...
..."If I had held it and it closed at $456 against my $459 strike wouldn't it expire worthless and I get the full $1.20 per contract?..."
After all that time here, you still ask stupid questions, and then call BWS an angry genius who is losing money?
After you claim a 90% win-rate?
What the hell is the problem then? Did you win some or lose some?
You need music.
Listen carefully to these lyrics, for they apply to you.