Losing money on puts when stock goes down

.sigma said:
i was thinking more like


im a gangster
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That song isn't along the lines of what I was thinking, but that is now a distracting tangent to the thread. Take it to the music section if you wish to have song wars, hehe.

Sorry folks for the slight off-sides. (Although I hear 50 cent options are a thing. Teehee)
 
Overnight said:
That song isn't along the lines of what I was thinking, but that is now a distracting tangent to the thread. Take it to the music section if you wish to have song wars, hehe.

Sorry folks for the oops. (Although I hear 50 cent options are a thing. Teehee)
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yes the infamous fifty cent VIX trader... it’s probably Curtis Jackson himself I wouldn’t be surprised..
 
.sigma said:
calm down bro @gaussian drops way more knowledge with 1.3k posts than your 13k posts lol

"You are trying to show expertise by throwing in a few greeks"

lmao dude who even thinks like this? Please show some decency
and lets discuss options without the shallow insults?

Cheers!
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Actually what @gaussian's post didn't make sense to me either. This must be a bad day for @gaussian.
 
ironchef said:
He is long put. Free fall is his friend.
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true.. and I don’t understand Gaussians statement about other sides of trades.

the floor doesn’t exist, market makers are not human anymore..at least I don’t think so.. I’m pretty sure in 2020 MM is pure black boxes? I mean I could see MM being human in 2015, 16, 17, and maybe even as late as 2018. But I doubt any exist now.

Idk about you guys but I’ve never worried about who’s going to take the other side of my trade. All the products I trade are very liquid so at worst I can slam a market order if I really need to liquidate.
 
gaussian said:
Speculation. OP gave very little information and I tried to help. Which is considerably more than you've done here.

I don't recall claiming expertise in options. Cool strawman though, jackass.
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It is you who is in the wrong. It was not a straw man. @zdreg pointed out the obvious. You showed "implicit" expertise by typing a whole bunch of jargon you knew by yours and other posters' admissions that the OP couldn't follow what you were saying. Why else would you post such a pedantic post if not to show off?

Internet disinhibition effect strikes again.
https://www.wired.co.uk/article/online-aggression
 
.sigma said:
Idk about you guys but I’ve never worried about who’s going to take the other side of my trade. All the products I trade are very liquid so at worst I can slam a market order if I really need to liquidate.
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I always asked. Why? I don't think they are dummies happy to hand over their hard earned money to poor old me. This question eliminated 80% of my trades.
 
Jakelieberman90 said:
I have a 17.5 dollar put on carnival cruise lines On friday. Today carnival is down 10 percent and I am down 16 percent. Someone explain how a put loses money when the stock price decreases.
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The option volume may be illiquid. You have a put contract and it may not be marking to market. It depends on when it expires. the closer to expiry the more intrinsic value the option obtains because the time value (theta) compresses.

The longer your time to exercise, the more time value the option has. Delta measures how much it prices relative the underlying stock's move. Gamma is the second derivative.

Stock Price - Strike Price at expiration is intrinsic value. Lots of the other greeks are important on the multi leg strategies. You have a single leg, so delta and time value are your key elements.

Try to pick options on names with good liquidity. Ultimately at settlement you'll get if you are in the money. You can exercise the option if you want and then take the short position and buy to cover.
 
Who among us has NEVER been concerned by Rho until now? Closed out amonster winner for tiny loss when bank rates went deeply negative
 
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