Options payout during bankruptcy

TheDawn said:
Ok so you just want to make sure you don't lose everything when and should the company goes tits up, anything less than that, you don't give a shit cuz that's incompetence and you don't believe in delta-hedging against that. You can lose $9K, $8K in addition to the $450 option cost (btw when the company goes bankrupt, you are not gaining $450, you are still losing that $450 just so you know cuz that's purchase cost of options that you will never get back) up to Oct. 18 and you will be fine with it but total bankruptcy of the company and losing everything, oh that's big, that's not incompetence, that you need to hedge against. LOL We get it now. :D:D

Well I give you the seal of the approval. You are completely hedged against bankruptcy. You didn't miss anything. There! In the meantime, GME is going to go sky high with 10X potential just like back in Jan. of 2021. Why? Because Roaring Kitty says so now again. LOL
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If you are afraid of a bk then you are over-sizing...and taking on more risk than you can assess. Yes if you are delta hedging all of your trades or whatever then you are managing your own incompetence. All it does is deplete potential profits by reducing potential losses.
 
I cleared a position from a bankrupt US company about 15 years ago.

I didn't want the paperwork to deal with over the years...Tied up in the courts.

So my broker (either Fidelity or Schwab) cleared the position on something like The Argentina Stock Market (MERVAL)!!
 
wxytrader said:
If you are afraid of a bk then you are over-sizing...and taking on more risk than you can assess. Yes if you are delta hedging all of your trades or whatever then you are managing your own incompetence. All it does is deplete potential profits by reducing potential losses.
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LOL And you risking losing short of everything without delta hedging is not depleting potential profits?

Seriously you have no idea how options work or how they work with your trades in the underlying.

Ok I am done feeding the trolls.
 
TheDawn said:
LOL And you risking losing short of everything without delta hedging is not depleting potential profits?

Seriously you have no idea how options work or how they work with your trades in the underlying.

Ok I am done feeding the trolls.
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The proper way to protect downside is to average down. I would rather have 100k across 20 possible 10 baggers and have a few go bankrupt rather than waste time delta hedging all my future profits away.

You see the difference between me and 99% of traders, and the reason I am driving a (2008) Lambo is because I don't give an f about managing risk, or if I do its by averaging down, and/or limiting risk capital.
 
wxytrader said:
The proper way to protect downside is to average down. I would rather have 100k across 20 possible 10 baggers and have a few go bankrupt rather than waste time delta hedging all my future profits away.

You see the difference between me and 99% of traders, and the reason I am driving a (2008) Lambo is because I don't give an f about managing risk, or if I do its by averaging down, and/or limiting risk capital.
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Ok one last feeding.

If you delta-hedged properly, you won't be hedging your future profits away.

Averaging down could be very dangerous if the downtrend happened to be a very long and persistent one. Personal experience.
 
TheDawn said:
Ok one last feeding.

If you delta-hedged properly, you won't be hedging your future profits away.
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Provide an example?

TheDawn said:
Averaging down could be very dangerous if the downtrend happened to be a very long and persistent one. Personal experience.
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Been there.

"The market can stay irrational longer than you can stay solvent." means nothing to me. I will simply walk away if things get bad and wait it out.

The thing is you never get the bottom so EVERY position you enter into will go against you. Especially if you have any size, because the market WILL try to shake you loose. This is why I don't bother using stop losses. When it tries to shake me loose, I say thanks! and average down. :)

images
 
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wxytrader said:
"The market can stay irrational longer than you can stay solvent." means nothing to me. I will simply walk away if things get bad and wait it out.

The thing is you never get the bottom so EVERY position you enter into will go against you. Especially if you have any size, because the market WILL try to shake you loose. This is why I don't bother using stop losses. When it tries to shake me loose, I say thanks! and average down.
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"Simply walk away if things get bad and wait it out" means exiting the position via a stop-loss and stay out. Averaging down means taking on new positions at a lower/higher prices while keeping the original position still open, exactly the opposite of ""Simply walk away if things get bad and wait it out". You completely contradict yourself.

You are either bipolar or you have absolutely no idea what you are talking about. You are just taking whatever terms that you see online and just putting them in your comments without understanding them at all. Are you really that lonely that this is what you would do to get attention even from strangers? LOL

Ok I have had enough. Putting you on Ignore.
 
TheDawn said:
"Simply walk away if things get bad and wait it out" means exiting the position via a stop-loss and stay out. Averaging down means taking on new positions at a lower/higher prices while keeping the original position still open, exactly the opposite of ""Simply walk away if things get bad and wait it out". You completely contradict yourself.

You are either bipolar or you have absolutely no idea what you are talking about. You are just taking whatever terms that you see online and just putting them in your comments without understanding them at all. Are you really that lonely that this is what you would do to get attention even from strangers? LOL

Ok I have had enough. Putting you on Ignore.
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I think it's more a reading comprehension problem. By walk away I mean I'll just forget about the position as in stop managing it. I have been down huge for over a year before recovering and making my profits.


TheDawn said:
Are you really that lonely that this is what you would do to get attention even from strangers? LOL

Ok I have had enough. Putting you on Ignore.
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It's the weekend...all traders get bored on weekends. :)
 
TheDawn said:
No, no posting of his actual positions, stocks or options. I don't think he's in any GME positions tbh. He's just theorizing atm I think. He has no idea how puts work and how they are priced. He thinks GME is going bankrupt by October of this year and that's why the puts are so cheap. :D:D:D and all he needs are puts so OTM to protect his long positions in the undie which he refuses to share any details except it's $10K in total book value.

Anyway he will learn.
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:)
 
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