Still think TITNC3: Return of the Iceberg was peak

Lets merge it with the 72oz steak challenge thread! That would be a fun time

 

Haha that’s my sons name too.

 

I seriously think I could do 48oz...Prepared properly...4lbs seems about right...Why in my day I'd eat a whole pizza in one sitting...
And it's still my day only I FORCE myself to stop at 4 slices because I don't want to be a fatty pig fatty...I had a 16oz steak last night and sure could have used 3 more

 

I will be feverishly shopping for AMC PUTS for next friday tomorrow...
If it opens at 11+ Buy the $8 puts for next week...I'd buy 20 of them at a sub $0.25 price...

 

Explain this one to me - what would make me “in the money” if I bought this?

 

If the stock goes below $8 your ITM. Your break is $6.84. It's gotta be below that at expiry for you to profit.

 

Buy now, average down!

 

How much is the profit?

 

Profitability on a put is put strike price ($8) - premium ask (1.18) = profit point...So on THAT contract you start making money when the shares are under 8-1.18=$6.82 , A PUT is the right to SELL 100 shares at the contract price. So you would have the right to sell 100 shares at $8 for the price of $1.18....SO once the shares are $5 and you have the right to sell at $8 the contract is worth $300...the MAXIMUM value of a put contract is The strike price - premium assuming the stock goes to $0.01...
BUT if amc spikes the cost of puts out of the money go down...That price is based on the closing price of AMC of $9.09 because options don't trade after hours...So if AMC is UP $2 we can look down $2 to the $6 put which was $0.25 for next friday...

 

You can explore what it might do here: https://www.optionsprofitcalculator.com

 

It's a multiple of 100 at expiry. So if it's at $5.84 you'll make $100.

 

I second this and call for a vote

 

@ThunderCookies if the stock goes to $0.01 on March 5th, you'd make $685

Edit: Practice with calls. Don't dive into Puts right away. Volatility and Theta will absolutely murder you on short term options if you bet wrong.

 

Fortunately for me, I didn't purchase any. But I did call it in a way...

 

SO YOU'RE SAYING I CAN MAKE $685!!!!
I'm in!

That's why for this play you put in a low ball Put buy and hope it fills on a spike...You don't chase..You don't bank it...You just put in an order for 20 of the $8 3/5 puts for like $0.20 each...that a $400 play...Stock comes back to under $7.80 and you're making $20 for every penny it drops below $7.80...
and then you don't get greedy but can have some fun...You say "If it falls to $7.20 I'll close 1/4 the positions for $400..." that covers your buy in and then you can gamble on a continued down turn...

OR
what you'll likely find is the premiums for the puts are way too high because everyone wants this play and knows the price won't hold...so you leave it...and move on...