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Message
re: Option prices on GME are wild---
Posted on 1/30/21 at 2:21 pm to Jag_Warrior
Posted on 1/30/21 at 2:21 pm to Jag_Warrior
quote:
If you sell a put, you don't have any exercise/assignment rights. It's the put buyer who has exercise/assignment rights
I deleted the comment because it's not what we were talking about originally, but that's not the case. If you want to own the stock, sell the put.
1
Posted on 1/30/21 at 2:50 pm to Chucktown_Badger
Honestly I'm not sure as I didn't see those prices anywhere. The screenshot he sent me was from 11:40AM on Thursday and was showing GME at like $228. He claims he sold it, but I'm wondering if it was a matter of the bid/ask being way off during GME's downturn that day
Posted on 1/30/21 at 2:56 pm to eScott
quote:
I deleted the comment because it's not what we were talking about originally, but that's not the case. If you want to own the stock, sell the put.
Ah, gotcha. I didn't see that you were deleting it when I posted the reply.
Posted on 1/30/21 at 3:31 pm to Jag_Warrior
No problem.
Posted on 1/30/21 at 4:25 pm to JDGTiger
quote:
At the close you certainly needed the put in the money to have any value.
If held to expiration, you would need the stock to drop a ton for the put to be in the money (ITM). You were asking why would someone buy a put option so far out of the money on expiry day.
I was just trying to explain you are not obliged to hold an option from the time you purchased it until it expires to make money.
You mentioned that when you were looking at the put options on Gamestop a few minutes after noon, the stock would have to drop $250 from it's current price to be worth anything. Later in the hour someone that bought those daily GME $100 puts could have doubled their money in less than 15 minutes when the stock dropped $48 to $275/share (still $175 away from the strike price) - if they were lucky enough to buy and sell at those times.
There is a difference between an option being in the money and the trade being profitable.
Posted on 1/30/21 at 6:16 pm to tigerfan4444
It is insane that there is a market on expiration day for puts $175 out of the money.
That is the point.
There are really a lot of idiots gambling.
That is the point.
There are really a lot of idiots gambling.
Posted on 1/30/21 at 6:33 pm to JDGTiger
quote:did you just ignore everything he just said?
It is insane that there is a market on expiration day for puts $175 out of the money.
That is the point.
There are really a lot of idiots gambling.
Posted on 1/30/21 at 6:40 pm to castorinho
No. What he just said is that traders made money trading with each other on the day of expiration. The last traders to own the puts at expiration lost all they paid for it. Nor did I ignore his first post saying the same thing. The only his posts are doing is reinforcing the OP.
He could have also posted what the buyers of those puts Friday lost at the end of the day Friday but he did not.
Do you think it is wise to try to trade puts $175 out of the money on the day of expiration??
He could have also posted what the buyers of those puts Friday lost at the end of the day Friday but he did not.
Do you think it is wise to try to trade puts $175 out of the money on the day of expiration??
This post was edited on 1/30/21 at 6:51 pm
Posted on 1/30/21 at 6:49 pm to JDGTiger
For sure some of those people are gambling, but as he pointed out people are playing the volatility and flipping it minutes later for a profit. Some were also using it as insurance.
Posted on 1/30/21 at 6:49 pm to JDGTiger
quote:
Do you think it is wise to try to trade puts $175 out of the money on the day of expiration??
With how volatile the stock has been and everyone knowing that the bottom is falling out soon, I can see some people rolling the dice.
Posted on 1/30/21 at 6:55 pm to castorinho
quote:
but as he pointed out people are playing the volatility and flipping it minutes later
They could not "flip it" if there was no market. At 5:01 EST Friday there was no market.
quote:They lost all their insurance premium then. They were all gambling.
using it as insurance
You buy yourself some $175 out of the money this Friday and report back.
This post was edited on 1/30/21 at 6:56 pm
Posted on 1/30/21 at 7:23 pm to JDGTiger
quote:They flipped it well before then. And as long as there's that kind of volatility, there'll be a market. With three hours to go.
They could not "flip it" if there was no market. At 5:01 EST Friday there was no market.
quote:these are contradictory statements. For the people were, that premium is nothing compared to what they own. Going by the 75 cents that was posted, that's 0.23% of the current price for a contract.
They lost all their insurance premium then. They were all gambling.
Posted on 2/1/21 at 12:02 am to JDGTiger
During regular market hours 9:30-4:00 eastern there is a market for options -- meaning you can buy and sell them. You can't trade options during the pre or after hours.
Are you talking about any stock option that is $175 out of the money on a Friday with 3.5 hours to go or just GME?
quote:
You buy yourself some $175 out of the money this Friday and report back.
Are you talking about any stock option that is $175 out of the money on a Friday with 3.5 hours to go or just GME?
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