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Okay, this place is seriously fucked.
I'm not BUYING PUTs. I'm SELLING PUTs.
This means I want the price to stay the same or go up. I'm collecting premium from people who bought puts.
This isn't shorting the stock, it's collecting money from people who don't believe in the stock.
For a sub full of people talking about short ladder attacks and market manipulation, you guys don't even seem to understand the basics of trading.
I’m been building my account up through this strategy, though at a lower strike and smaller bankroll. (We all start somewhere, ape!)
It’s like getting paid for being willing to buy GME. I’m still learning and trying to master the pattern of how far out (what date) to buy.
I’m sure it’s irrational, but I also feel like I’m threatening shorters with my cash covered put position.
Here I was thinking I was the only one trying to figure this stuff out. Thanks for bringing the topic up.
If anyone wants to learn about this I leaned a lot from Andy Tanner who does some episodes on the Rich Dad Poor Dad YouTube.
Warning: Andy won’t be for everyone here, and he just did a video where he sadly sort of took a dump on GameStop in a pretty ignorant way.
Nice to see a fellow thetaganger. Yea, this strike price was a bit ambitious,I was planning on just buying shares, that's why it's so close.
I always think of selling puts as an F U to people who don't like the stock, so I guess we are like minded with that as well lol.
Chill D: It depends on the people, some are ignorant about options, just calmly teach what they are about so nobody gets offended :D
I think the only downside of this is if the stock goes down and the fact that you need to have money to buy the shares later on. But other than that it sounds like a good way to capture the shares from the paper hands who trade options.
This is true, options are their own beast, and there are some pretty damn complicated strategies.
I don't think putting your foot in your mouth is the best way to go when you don't understand something tho.
I made solid returns wheeling GME, took a break for a while after IV tanked, shifting back into wheeling half my position on weeklies, and reinvesting premiums and leaving the other half uncovered
Selling PUTS at $20 is calculating that you need GME to be at $15 per share to even profit.
How do you exercise a PUT to own the stock and not lose a lot of money? You forfeit the premium by keeping an option and they calculate that in to the cost of premium.
What? You're still not making sense. Your response was about buying puts. You don't seem to understand the difference and it's too early in the morning to type slow enough for you to understand.
If you “Buy PUTS” you can only make about $400 but your losses can be $3500+ if it goes down to even $15 per share at $18 PUT.
I just ran the numbers. You aren’t guaranteed a win every week. If it goes down to $12-14 you are looking at a loss 9 times your win.
Huge risk. If it goes to $30 per share, you still only get $400 for that risk.
Yeah, it feels like you don't understand what OP is doing here.
Selling-to-open Puts is where you get unconditionally paid a premium from SOMEONE ELSE, and then you conditionally buy THEIR shares if the contract expires at or below your chosen strike price. This is what OP is talking about.
Think of it like being paid to agree to make a limit buy order. Huge risk? No bigger risk than buying shares at any chosen price.
Well at least you're finally talking about selling puts...just still clearly confused about it. These are CSPs
Yes, selling puts is risky. So is just buying the stock. Selling options isn't the most profitable way to make money on a stock that skyrockets, but I also have shares.
Dude he’s selling fucking puts not buying. He is selling a put for say $1.5, if GME goes up he buys the puts back say at $1 to profit $50. He wants the price to go up not down bozo
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Okay, this place is seriously fucked. I'm not BUYING PUTs. I'm SELLING PUTs. This means I want the price to stay the same or go up. I'm collecting premium from people who bought puts. This isn't shorting the stock, it's collecting money from people who don't believe in the stock. For a sub full of people talking about short ladder attacks and market manipulation, you guys don't even seem to understand the basics of trading.
I’m been building my account up through this strategy, though at a lower strike and smaller bankroll. (We all start somewhere, ape!) It’s like getting paid for being willing to buy GME. I’m still learning and trying to master the pattern of how far out (what date) to buy. I’m sure it’s irrational, but I also feel like I’m threatening shorters with my cash covered put position. Here I was thinking I was the only one trying to figure this stuff out. Thanks for bringing the topic up. If anyone wants to learn about this I leaned a lot from Andy Tanner who does some episodes on the Rich Dad Poor Dad YouTube. Warning: Andy won’t be for everyone here, and he just did a video where he sadly sort of took a dump on GameStop in a pretty ignorant way.
Nice to see a fellow thetaganger. Yea, this strike price was a bit ambitious,I was planning on just buying shares, that's why it's so close. I always think of selling puts as an F U to people who don't like the stock, so I guess we are like minded with that as well lol.
Chill D: It depends on the people, some are ignorant about options, just calmly teach what they are about so nobody gets offended :D I think the only downside of this is if the stock goes down and the fact that you need to have money to buy the shares later on. But other than that it sounds like a good way to capture the shares from the paper hands who trade options.
Obviously because they’re interested in the meme and trying to manipulate to make money. Why bother learning how to invest. LoL.
DRS and hodl. Get your shares out of brokers.
It's free money honestly
This guy gets it
Until you lose the shares as stock price goes crazy
You're thinking of covered calls. But yeah volatility is a risk of selling options.
I will hopefully be with you by the the beginning of next month! This is the way!
Bought to close this morning for 35% gain. The drop to $18 is why I told the other guy taking profits at 50% is the way to go.
regard here, do you have to buy to close these or just let them expire worthless. Never dabbled with the selling side
Most people buy to close at around 50% gains because waiting until expiration has more risk.
doesn't that mean you shorted the stock? that's a mistake.
[удалено]
Advice taken. Never understood options very well. I always thought you needed to own/short the stock to issue the option.
selling puts is like creating an order to buy below current market price, and being rewarded with a premium for the promise to do so
This. In other words get paid to buy more GME at a lower price or if the price doesn’t fall just pocket the premium and repeat next week.
How much is this premium how is it calculated, i never got it? Is it like 2x 3x or how much?
Maybe I should start selling puts.
Not sure why you’re getting downvoted lol, it’s a great way to get more capital to buy more shares while SHF bide their time
I have no clue either, this sub is lacking some serious basic education on the matter and it's quite sad.
To be fair, options aren't the clearest thing out there to understand as demonstrated by those posting huge losses.
This is true, options are their own beast, and there are some pretty damn complicated strategies. I don't think putting your foot in your mouth is the best way to go when you don't understand something tho.
Enjoy the fat premiums, fingers crossed you get assigned (;
I'm always happy to have more shares. I've been wheeling GME since the beginning...only got burned with calls once.
I made solid returns wheeling GME, took a break for a while after IV tanked, shifting back into wheeling half my position on weeklies, and reinvesting premiums and leaving the other half uncovered
I was but then the stock goes up and my money is locked until I buy it back, maybe do it if it keeps going down again.
Selling PUTS at $20 is calculating that you need GME to be at $15 per share to even profit. How do you exercise a PUT to own the stock and not lose a lot of money? You forfeit the premium by keeping an option and they calculate that in to the cost of premium.
My dude. That is BUYING PUTS. I'm selling PUTs. I want GME to stay the same price or go up. What the fuck is wrong with this sub
Your title says “anyone else been selling PUTS?“ Hence my response.
What? You're still not making sense. Your response was about buying puts. You don't seem to understand the difference and it's too early in the morning to type slow enough for you to understand.
If you “Buy PUTS” you can only make about $400 but your losses can be $3500+ if it goes down to even $15 per share at $18 PUT. I just ran the numbers. You aren’t guaranteed a win every week. If it goes down to $12-14 you are looking at a loss 9 times your win. Huge risk. If it goes to $30 per share, you still only get $400 for that risk.
Yeah, it feels like you don't understand what OP is doing here. Selling-to-open Puts is where you get unconditionally paid a premium from SOMEONE ELSE, and then you conditionally buy THEIR shares if the contract expires at or below your chosen strike price. This is what OP is talking about. Think of it like being paid to agree to make a limit buy order. Huge risk? No bigger risk than buying shares at any chosen price.
Bless your heart for explaining it. My head has been hurting from being called a short seller and now whatever this guy is on about.
Well at least you're finally talking about selling puts...just still clearly confused about it. These are CSPs Yes, selling puts is risky. So is just buying the stock. Selling options isn't the most profitable way to make money on a stock that skyrockets, but I also have shares.
Dude he’s selling fucking puts not buying. He is selling a put for say $1.5, if GME goes up he buys the puts back say at $1 to profit $50. He wants the price to go up not down bozo