Now THIS is peak WSB...Dude YOLOs $90k on GME weeklies...just learned about call options...

Saltynuts said:
LOL, yes, I know. We shall see Monday! Monday will be one of the most apocalyptic battles this world has ever seen. The ultimate good (people trading based on true underlying facts and fundamentals) versus evil (those who would try to screw the good ones just for shiats and giggles). I assure you that, while the battle might be fierce, I shall reign supreme when the smoke clears and all is said and done.
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Just promise us here at ET that when crazy news hits like Elon Musk accepting GME shares in exchange for Tesla’s and this shit gaps up to $1k overnight...you don’t do something stupid like give your toaster swimming lessons in the bathtub.
 
Overnight said:
Yes, that would be the loss he would take if he exercised those options at the penny price. Right? So he lets them expire, and just loses the 30K he paid in premium. Maybe that is why that one reddit kid took his own life when his RH account did not properly show his true account value with the hedge?

I still do not get how if you spend 30K in premium to buy naked call options, how they would expire and you owe triple the amount.
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He paid $90k in premium. That’s where you are confused.
 
Overnight said:
Wot, I did the math! Where's that list...Grrr.
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Look at the first post...if you add up all the contract value at that time is comes to ~$30k...but look above...it shows a current loss of $60k...because he lost $60 of the $90k he spent in premium the first day and only had $30k value remaining. The update I posted shows he lost $91k total basically 100% lol.
 
zghorner said:
Look at the first post...if you add up all the contract value at that time is comes to ~$30k...but look above...it shows a current loss of $60k...because he lost $60 of the $90k he spent in premium the first day and only had $30k value remaining. The update I posted shows he lost $91k total basically 100% lol.
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Yeah, I do not like the interface. It is not showing what his original cost is on those positions. So wow.
 
zghorner said:
Look at the first post...if you add up all the contract value at that time is comes to ~$30k...but look above...it shows a current loss of $60k...because he lost $60 of the $90k he spent in premium the first day and only had $30k value remaining. The update I posted shows he lost $91k total basically 100% lol.
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But nobody here in the options world has told me why it would be sane to buy a $510 call expiring in a week, or even those layered calls the guy did this week, with 2DTE? Hello? What was the reasoning for it?
 
Overnight said:
But nobody here in the options world has told me why it would be sane to buy a $510 call expiring in a week, or even those layered calls the guy did this week, with 2DTE? Hello? What was the reasoning for it?
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The reason is that the guy is retarded...it was a $90k lottery ticket...the guy probably expected it to go to ATH by the end of Friday. Just an all around horrendous play even the folks at WSB are In Awe of how idiotic a move it was. There is no logical explanation...the dude just discovered options and thought that was the way to go haha.
 
zghorner said:
The reason is that the guy is retarded...it was a $90k lottery ticket...the guy probably expected it to go to ATH by the end of Friday. Just an all around horrendous play even the folks at WSB are In Awe of how idiotic a move it was. There is no logical explanation...the dude just discovered options and thought that was the way to go haha.
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Thank you for reinforcing the idea in my head that I am not THAT stupid in trying to understand options, :-)
 
zghorner said:
Just promise us here at ET that when crazy news hits like Elon Musk accepting GME shares in exchange for Tesla’s and this shit gaps up to $1k overnight...you don’t do something stupid like give your toaster swimming lessons in the bathtub.
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GFCI circuitry doesn't allow those lessons any longer. :-)
 
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