IB banning opening new put option positions in GME

[zghorner]

It is indeed correct. The stock is standing rock solid above $300 (Now at $345 with 40 mins to close). 29-Jan expiry (next Friday) has some 300k puts OI and 150k calls OI. The fact that all those puts are out there means that a lot of them are actually hedged with short stock or at best with other long puts in farther expires.

With such a trajectory in the last 2 weeks and the stock is not collapsing, it only means one thing, it probably isn't over yet.

will you bang my wife please?

 

[zghorner]

It's those darn Greeks. They can often get very greedy just when you're not looking.

I just don't understand how a move that should increase IV further would hurt people long options?

 

[narafa]

It's those darn Greeks. They can often get very greedy just when you're not looking.

I agree, but who gave IB the right in the first place. Plus say I want to trade a put combination which is not sensitive to Vega, like a put vertical for example.

 

[lindq]

You're expecting an increase in IV. Ain't gonna happen.

 

[SteveM]

With such a trajectory in the last 2 weeks and the stock is not collapsing, it only means one thing, it probably isn't over yet.

I get all the options effect on prices, but do longs consider that they own a $345 stock that is backed by a business model that has become the Blockbuster of video games?

 

[tsznecki]

@lindq You seem like a rational person, so let me ask you this: Why do you care what @narafa is doing with his money? If he wants to buy puts why can't he?

 

[tommcginnis]

So, nobody's heard of 'synthetics'? Do I have that right?

 

[narafa]

I get all the options effect on prices, but do longs consider that they own a $345 stock that is backed by a business model that has become the Blockbuster of video games?

Well, now this is not about the business model. It turned into a futures market (Through the mix of stock & options). Losers handing profits to winners until the situation changes. And slowly players are throwing in the towel & getting out of the game.

 

[lindq]

@lindq You seem like a rational person, so let me ask you this: Why do you care what @narafa is doing with his money? If he wants to buy puts why can't he?

Nothing at all personal. And thank you for the compliment. The value of this site is that those of us who have been through a few wars can share information that may, from time to time, be a little helpful.

 

[SteveM]

Losers handing profits to winners until the situation changes.

Yeah, but if I'm long at $345, I've gotta realize that I am one overnight headline away from waking up to 80% losses, no?