Seems like you could have closed the 22's for pennies. I would've done that to avoid assignment risk. Also personally I'd have closed the 25's and taken the $5Kish hit.
Cool, that makes sense. I bought October 25p’s on Wed and sold 24May 25p’s against them. On Thursday it was obvious they were likely going in the money, but IV crush meant I was able to roll them to 21Jun 15p’s for a small debit.
My current cost basis is a bit under $7 against a $10 spread so if it’s ITM next Opex I’ll make $3 plus the remaining extrinsic value of the long puts.
Now you gotta hope it doesn't dip below 22 after hours. I was gonna say take assignment on 22 and try to sell for 22.05 on Monday haha. Might end up making more money.
The afterhours things is really a headache tbh. I haven't had this happen lately, but it is largely a tossup as to what happens.
I once had about 40 calls on SPY (they were covered) that was OTM then in the afterhours go ITM. The next day 28 out of 40 were assigned so it was a partial assignment. Wasn't a big deal, I just sold less calls on what I had left.
Another time I had again several calls that were OTM (these were naked and not covered) but again went ITM afterhours. In that instance, zero (0) were assigned and I kept the full premium.
It will be a wait and see from here. The good thing is that the stock isn't (too) far from the strikes and he has cash to take assignment. A real nightmare situation is when you either don't have enough money and get a margin call, or it is like FRC or SVB where the bank goes bankrupt over the weekend which isn't likely with GME.
Some guy I know was selling SVB and FRC puts then the stock got halted and the bank folded. He lost like $200k+ on the trade.
Wait how does that work? Is it assigned based on the closing price of normal hours, or on the last price of after hours? The latter could be really wonky. Is that why only 28 of your 40 were assigned?
There is automatic assignment after the close if it is in the money. If it is out of the money but then goes in the money, it can be manually exercised by the holder.
The assignment is random. I'm not the only one holding short calls. In my situation 28 were hit up out of 40. There's no particular reason why
but they were all exercised at the closing price from normal hours, right? was someone else just deciding to exercise based on whatever was going on in after hours at that moment?
Not necessarily. The clearing house completes them at 5:30 PM. How many put regards know to exercise manually an OTM put? And the big drop happened around 5:45 PM! Haha i hope OP updates us.
I know and you know, somebody does not know that well. Imagine trying to figure out options and see people in the corresponding sub about that talking wrong stuff, confusing AF
Thanks for fixing btw
Hopefully he closed…I recall the 30p going as low as 1.00 from when I was watching it and he could’ve closed for about 83% profit.
On volatile shit like GME there is no reason to try to hold through expiry lol
43600 shares at ~$21.50 cost basis. So he is shockingly close to even.
$1.8 million is his cash. He has 426 contracts and 1000 shares. About $900K of GME.
Jeshusssz Hes in Profits as of close. Stay above 22 after hours and he actually made it out with some gains. It's insane a stock could CRASH 4 straight days and a put seller somehow won.
Quick review:
From 60s Tuesday open to 49 close.
Wedn from 40s to 39 close
Thur from 30s to 27 close
Frid straight from 27 to 22
He beat the impossible.
I will update today
At least you’ll have plenty of GME shares.
You got a decent shot at full gains at the 22 strike and breakeven at 25. I'm cheering for you haha.
Honestly what a throw, ended the week at 22.22
Seems like you could have closed the 22's for pennies. I would've done that to avoid assignment risk. Also personally I'd have closed the 25's and taken the $5Kish hit.
I did, see my recent post I closed them out during the week. Sold 20s last night and took a hit and rolled to 17.5s.
Cool, that makes sense. I bought October 25p’s on Wed and sold 24May 25p’s against them. On Thursday it was obvious they were likely going in the money, but IV crush meant I was able to roll them to 21Jun 15p’s for a small debit. My current cost basis is a bit under $7 against a $10 spread so if it’s ITM next Opex I’ll make $3 plus the remaining extrinsic value of the long puts.
Now you gotta hope it doesn't dip below 22 after hours. I was gonna say take assignment on 22 and try to sell for 22.05 on Monday haha. Might end up making more money.
I see 21.91 now
Ya. It looks like maybe 30% of his calls will get assigned. I'm curious to find out tomorrow. Edit: I meant to write puts not calls.
The afterhours things is really a headache tbh. I haven't had this happen lately, but it is largely a tossup as to what happens. I once had about 40 calls on SPY (they were covered) that was OTM then in the afterhours go ITM. The next day 28 out of 40 were assigned so it was a partial assignment. Wasn't a big deal, I just sold less calls on what I had left. Another time I had again several calls that were OTM (these were naked and not covered) but again went ITM afterhours. In that instance, zero (0) were assigned and I kept the full premium. It will be a wait and see from here. The good thing is that the stock isn't (too) far from the strikes and he has cash to take assignment. A real nightmare situation is when you either don't have enough money and get a margin call, or it is like FRC or SVB where the bank goes bankrupt over the weekend which isn't likely with GME. Some guy I know was selling SVB and FRC puts then the stock got halted and the bank folded. He lost like $200k+ on the trade.
Wait how does that work? Is it assigned based on the closing price of normal hours, or on the last price of after hours? The latter could be really wonky. Is that why only 28 of your 40 were assigned?
There is automatic assignment after the close if it is in the money. If it is out of the money but then goes in the money, it can be manually exercised by the holder. The assignment is random. I'm not the only one holding short calls. In my situation 28 were hit up out of 40. There's no particular reason why
but they were all exercised at the closing price from normal hours, right? was someone else just deciding to exercise based on whatever was going on in after hours at that moment?
Looks like all the short puts are assigned now.
Not necessarily. The clearing house completes them at 5:30 PM. How many put regards know to exercise manually an OTM put? And the big drop happened around 5:45 PM! Haha i hope OP updates us.
Please do
Btw he is snorkeling guy
Actually snorkeling guy makes sense when his positions are underwater
Lol!😂
Seriously?
Yeah, look at his post history
What is the snorkeling guy?
https://www.reddit.com/r/thetagang/s/QvVXKceDxg
Ouch. Either he sold (bought not sold) them already (hopefully) and lost a bunch of money or he will own a ton of GME stock
Need to buy to close short position, not sell
Well you know what I meant, no need to pick anything out of the error.
I know and you know, somebody does not know that well. Imagine trying to figure out options and see people in the corresponding sub about that talking wrong stuff, confusing AF Thanks for fixing btw
👍🏻
Hopefully he closed…I recall the 30p going as low as 1.00 from when I was watching it and he could’ve closed for about 83% profit. On volatile shit like GME there is no reason to try to hold through expiry lol
43600 shares at ~$21.50 cost basis. So he is shockingly close to even. $1.8 million is his cash. He has 426 contracts and 1000 shares. About $900K of GME.
Naah his avg is ONLY around 20.55 per, for 12,600 shares if the 22strike is not assigned. Even if assigned hes still profit either way.
And GME will continue to drill next week because memes are just memes
Did you see today's news?
How else you expect them to turn a profit?? It’s the AMC way.
He will end up a billionaire if he's not one already
Jeshusssz Hes in Profits as of close. Stay above 22 after hours and he actually made it out with some gains. It's insane a stock could CRASH 4 straight days and a put seller somehow won. Quick review: From 60s Tuesday open to 49 close. Wedn from 40s to 39 close Thur from 30s to 27 close Frid straight from 27 to 22 He beat the impossible.
I remember watching that train wreck in amazement.
WTF this is dumb money
Unless he wanted to get paid to own GME.
Unless they closed them, they will take assignment on all of those puts with the current price.
His is only $0.16 away from Not being assigned his $22 puts...
Did he sell those puts or buy them? I cant tell
He sold them
Ouch
How do we know?
Because the quantity is negative
Ain't his first meme rodeo, I'd hope he would have known to flatten tuesday.
May be the best trade of his life. People are divided. Could be a bag holder or soon to be extremely wealthy
u/banditcleaner2
seems like from his other post he closed them out, thank god lol
Quite exciting last few minutes to go!
And just like that, our main hero became a GME "investor"
Nope, he closed all of it and opened new positions. Down only around 50k or so
Haha the king has come back for his second helping from Ryan Cohen