Still think TITNC3: Return of the Iceberg was peak

PLUG did me very well today!!!

 

sold out my OPTT for a few grand, no GME day but green is green.

 

It will, because the burden of responsibility goes to the bank or broker. They are legally obligated to buy the shares on the open market. That's the squeeze. We hold all the shares, and we literally get to name our price and they're forced to purchase the shares. If we all united as one and said, "$5,000 only" they'd have to do it.

 

That’s also why it went up so dramatically after hours. You have the combination of the inability to rapidly short short shares, combined with people getting letters in their inbox that say cover your ass buy some shares.

 

So I’m starting to understand options from reading (I think) but want to run it by someone before I try my hand at it. Not sure if I’ll do amc just using it as a hypothetical.


The way I read that is If buy a call for $9 at $8.25 that’ll expire on Jan 29. As long as the stock reaches $9.19 before Jan 29 I’ll break even correct? And anything over $9.19 is profit? Or am I missing something.

it says 100 shares so if I buy 1 of those calls, and the stock goes to 9.20, I make a dollar (9.19 break even, 100 shares. Penny profit equals $1.00)? Just to keep it simple.

and if it doesn’t, what happens lol

 

I sold just enough oil ETFs that I had as an inflation hedge to buy 1 share of GME @$210 just to be a part of the fun for tomorrow.

 

OK so I just saw this post. One thing to be aware of off the bat is that options only trade during regular market hours. So the price you see for an option is based upon the closing price of the stock on the day and has nothing to do with the after hours prices. That $.19 price you see there is based on the closing price of AMC.
So because AMC Is $8.23 after hours that call price will go up significantly when the market opens tomorrow. Options begin selling about five minutes after market opens to allow the prices to equilibrate.
Now for your question/statement. Options are always based on 100 shares unless there’s some crazy split unique special case. So here that nine dollar option is a contract to buy one hundred shares of AMC at $9 a share on or before 1/29. And yes the price would be $.19 per-share times 100 shares or $19. So while the market was open today that contract was $19 plus sometimes you’ll pay a small $.65 fee depending upon your broker for each contract, not per share.

Here’s where the fun of options come in. You see there that this gives you the earning power of 100 shares. If the stock goes above $9.19 everything for you is cake, or tendies. So if you had purchased 10 of these contracts today it would’ve cost you $19 times 10 or $190 tomorrow these contracts will most certainly be worth at least $1.50 at the open of the market times 10 contracts $1500 hell of a return on 190 bucks.
For seeing a potential spike in the price of AMC based upon peoples interest I bought 20 of the $5 calls for like $139 each 2 days ago. They are of course going to be worth a shit ton tomorrow and continue to increase in value if there is some kind of a squeeze on AMC.
The important thing to remember is it’s “by to open” when you’re buying a call and “sell to close” when you’re closing the call.
Also try not to do what I call chasing the call. Do you have a call you’re interested in that say $.50 and you want to bid on it and it goes up to $.60 and then goes up to $.65 sometimes if you just set your 50 Cent buy price and give it an hour or two it will come back down and you’ll get your call. If it keeps going up sometimes I just chalk it up to missing the train and call it a day. This of course does not apply to special cases like GameStop and AMC

Oh I realize you were asking what happens on 129. Working off your nine dollar price there are three things that can happen. Number one the stock is under nine dollars since you have the right to buy at nine dollars you’re not going to spend more than the stock is worth so your contract is worthless you lose all of your money you get nothing good day sir. Number two the stock is above nine dollars say it’s $9.50 your contract is now worth $.50 you can either sell to close the contract to someone else and someone else will buy that contract off of you for $.50 or You can exercise the option and purchase 100 shares for nine dollars you would then need $900 to buy the shares and then they would instantly be worth $9.50 each netting you an instant profit in value of $50. Most people do not exercise calls they sell them to someone else because usually you can get like $.53 when the stock is at 9.50 because call options have some thing called time value. However if a stock were undergoing a short squeeze and kept going up $10 dollars $15 $20 $25..,You might want to exercise the call to capture more of that rise that might happen after the expiration date

 

Thanks for the taking the time to explain. I get that options are only during hours not post. More using it as an example. Probably buy some regular shares tomorrow of amc and start with a more stable stock for my first option haha

 

I reset my sell limits. I'm going to start winding down at $500 now and cover my cost basis and then hold for $750+

Estimates of $1000 - $2500 / share starting to look actually possible

Basically I have a couple limit orders at $500 and then a 20% trailing stop on the rest. I'll ride it till it goes bust and hopefully get out 20% give or take from that.

 

First off, don't start with weeklies while you're learning (I know you probably weren't planning on it). It's a fantastic way to lose a lot of money really quickly. I'm trying to digest your post and all that you're asking but it's getting late and I'm a bit tired.

Not sure how you came up with the 1/29 $9c costing $8.25? --oh, that's the share price-- In your picture that call contract (the right but not the obligation to purchase 100 shares) is priced at $.19. $.19 x 100(shares) = $19 per contract cost.

There's a lot of underlying math you have to worry about on short dated options too. Intrinsic value will Theta decay (there's a whole group of math that goes by the name 'greeks') on these weekly contracts, especially on high volatility calls.



You're looking at an extremely high volatility -- 554%!!! I wouldn't touch anything on a weekly with that much volatility unless god himself told me it was going to burst upwards (or it was GME)

I'll try and explain a bit more tomorrow if I have time, but honestly, take a few hours and watch some videos on youtube where they go through the whole process. It's really cool, and you'll learn a lot of stuff you never thought you'd care about!

@TreeFortRichard beat me to it. I'm not gonna read his post cause I'm going to bed, but trust what he has to say about it.

GE 3/5 $11.5c would not be a bad one to try your luck on. It's on sale today for $60 a contract

 

I wish I would've kept my AMC shares I bought at $2ish. I just play around for fun and sold them around $3ish but it sure would be been nice to make that extra money they're worth now.

 

And the $320 options are gonna be live in the AM for GME. The amount of crazy going on here is crazy. lol

 

The squeeze has begun.

 

Which one?

 

And BB.

 

Are we?

 

StoCK Pr0N!
Today shall be EPIC!!!!!!!!!!!!!!!!!!!!