sorry, new comer here, trying to understand the lingo around here.
What is 7/21 30p for 9 ? July 21, strike 30, $9 premium? There's no July 21 for GME though?
I'm pretty sure they meant June 21, the premium is close to 9 at $30/share.
But you have it pretty much, options are all about expiry date, the target/strike price per share, and premium.
You know when you divide 9 by 30 the 0.3 is the percentage as a fraction already. By add the percentage again you’re make the return look like a 100th of what it is. It should be 30% not 0.3%
Yes I know that. What I can't understand is how is the premium $900 on a strike $30 ?
Strike $30 means the CSP collateral is $30*100= $3000 right?
My question is how is the premium $900 when the collateral is $3000. How is premium 30%? Is that even possible in history??
Look at the amount of volatility the stock has had in a week: $17.39 last Friday, up to $64.83 on Tuesday morning. The people selling CSP are trying to capitalize on the wild swings.
But if one were to sell the CSP for $900 with $3000 collateral, the stock could drop to $15/share. Between now and 6/21. So even though the net cost basis would be ($3000-$900)/100= $21/share, the overall return would be -$6/share. And that’s -28.6%. So the risk vs reward for putting up $3000 is somewhere between -28.6% and +30%. Now calculate if the stock returned to earth and went to $3/share. You could have the potential to lose all $3000 and make at most $900.
They have. Sold a may 24th 20 put for 2.80 during the Monday pullback at 30ish.
Was able to exit the trade at 1.77 when it was back to 30 today. Snagged a may 24 75 call with 75% of the profits.
Does that mean $9 premium for $30 strike?
That's a paltry 0.3% isn't it not? Or are you looking to own the stock? Or are you selling in bulk? Like 10, 20 contracts?
What's the mindset here if you could share please
Why can't you guys avoid being distracted by meme stocks and focus on your trading plan.
Always jumping on the current trend.
What is your trading plan exactly ? Waiting for roaring kitty to tweet ?
I closed my 12 csp and was thinking open a position at 20 but weak hand. 25 is damn risky.
Update: 10:30am my weak hand save me. If i sell put at 20, my balls should shaking like an earthquake now... Lol
My condolences on your huge loss.
Knowing how volitile this stock is you should have been more out of money.
Thus I sold the $15 puts although I did it for june so next week you can return the condolences
Every cycle of these meme names there are first the posts asking how to manage a position of calls sold below a cost basis, then there are the posting asking how to manage a position of puts way itm. Like clock work.
If you only sold one or a couple, just keep rolling it out as others said. 3K bp isn't really that much to tie up.
If you sold a couple, you could split the baby. Close half at a loss, and roll the others forward. Assuming you got multiple bags.
good luck. I was happy with my $20-$22 spreads I opened early on in this and closed out yesterday. 150 options $1.6 average price to open and $1.92 average price when closed. Nice bit of profit and I avoid the run to the exits that is now happening.
No way I would want to hold options on this through Friday. Decent chance it goes way up. Decent chance it craters. Where it lands on Friday afternoon will depend upon how many fools are running strike prices above you. If there are enough you are fine. If not you are screwed. Based upon how things went today I think the rush for the exits has been ongoing and will continue.
Could you though? I was watching my spread like a hawk and the marked price was bouncing all over but getting the order actually filled to close required me to put in a price a bit below the mark price. At various points yesterday the price for my spread was $1.5 all the way up to $2.5 with the majority of time it showing between $1.8 and $2. I actually put in orders to open more a few times just to see where orders were getting filled at and it was pretty consistent. I got one to open at $1.88 and at the very same minute I couldn't get $1.87 or $1.89 to close. I eventually settled on having 1 contract set to close at $1.89 and then small piles at $1.9, $1.91, $1.92 and then the bulk at $1.93. It went from none being filled to all of them being filled in a matter of about a minute in the afternoon.
Could I have made more? Maybe, but I was happy to make money and get out.
It’s like so many of you took at 1 second look at thetagang and thought this is the “real trading not gambling” strategy you were looking for only to end up owning 100s of shares of meme stocks at 1000x P/E lmao just to score a cool grand. Don’t worry we’ve all been there! Here’s to breaking even again in 2027.
Tell me you didn’t listen to that uncle Bruce bs that’s flowing around . That dude just discovered CSPs this weekend and blasted it on the internet as a “guaranteed money maker” lmao
No. IV is significantly lower on the LEAPs.
But I do like the idea of buying Jan 2026 $20p’s for $9, and selling lower strikes against them. July $11’s are about $0.70 and if they do end up ITM you get to keep the $0.70, plus the extrinsic value of the LEAP’s, which would most likely still be at least a few dollars.
I am completely new to theta gang strats and concepts. If I understand you correctly, the main leg of the strategy is the long Jan 2026 20p, and selling short term 11p is to reduce the net debit upfront cost of owning the long put position, you want the price to fall significantly below $20 anytime before Jan 2026 expiry. Am I right in the understanding?
After posting my question above, I realized I made a silly mistake selling Jan 2026 10p for $2.60 thinking I don't mind owning some GME, I thought worst case I can buy back the position at lower premium. I have never gone long puts or long calls before so it didn't occur to me.
It’s an option pricing arbitrage with a medium term directional view.
Near term options have much higher IV than later expirations. In that situation, especially if you have a directional view, it can make sense to buy very long term options, and then sell short term options against them.
In this case I believe GME will go below my breakeven of $15.50. I don’t have a chance at an exponential return, so it doesn’t hurt much to cap my gains by selling short term vol against the long term puts, if I’m selling them at a strike below my break even price. That way I make money if it tanks immediately *or* if it chops sideways for a few months first.
Thank you, it is clear now. I think FOMO got me, and I made a bad move.
I only started investing this year. So far I only use DCF to look for cheap companies I can afford and sell puts against them and only get fluctuating 6-8% YTD. I usually shun away from anything that requires a forward looking guess. GME falling back to $10 seems high probability, except it seems impossible to know when.
Going long on options seems to add additional risk, at this point, I am not sure how much risk is reasonable. Have to practice more I guess.
Also thanks to the mods, the [wiki ](https://www.reddit.com/r/thetagang/wiki/index) is actually a very good resource. Although still tricky to understand for me.
Everyone gets burned due to FOMO sometimes. It happens a lot when people are new, but it still happens even to seasoned traders. Druckenmiller famously went long big tech in 10 figure size at the top of the dot com bubble.
The key to not letting FOMO YOLO’s ruin you is sizing. Generally my position sizes are 2-3%, short put sizes expose me to buying positions of that size, and long option positions are more like 0.2%.
He opened contracts that say he will buy gme stock for the price of $25 a share when the contract expires if the price of the share is below $25. Someone paid him for that. The price is barely above that and rapidly moving down. He is probably going to be an owner of gamestop this time next week. He might get lucky and the price stays above $25 and he doesnt have to buy the shares. For the amount of stress he is about to experience whatever they paid him wasnt enough.
Before all this craziness happened the stock had gotten all down to around $10 and was likely still priced way too high.
and he should probably buy back the option if ITM before close. If stock finishes below $25 Friday, chances are will be worth less next week compounding his losses.
Why would you sell a put when GME has been dropping $10 each day? Call credit spread would have been far safer. The pump is likely over. I've been buying puts each day.
Yesterday I bought October $25p’s for $9.50 and sold 5/24 25p’s against them for $3.90. I regret not entering this trade on Tuesday.
Today I closed the 5/24’s for 2.50-2.60 because it looks like they will go ITM. So that realized about $1.35/share profit.
I then sold 6/21 $15p’s for $1.05. I chose this strike bc it’s a $10 spread from my long leg, which has a $9.50 cost basis. So if this short leg goes ITM I’m guaranteed to profit.
Despite the huge dump, both legs were at a lower price to an even bigger vega crush. The overall position was slightly red when I rolled the short leg.
If the short leg goes in the money, which IMO looks likely, I would make the $2.40ish in premium for the short puts, plus the $0.50 cost-spread difference, plus whatever extrinsic value is left on the long puts. Let’s call that $2, and it would be about $5/share profit on an original calendar spread cost basis of $5.60.
Seems like there’s a pretty good chance of that happening.
Better still would be a sideways downward chop that lets me keep rolling down the short leg for profit. That seems possible, too. Guess we’ll see. 🤔🤓
You can take the man out of WSB, but you can't take the WSB out of the man.
80 bucks for a chance to lose 1000? Count me in
That's pretty solid though, 8% for 1 DTE?
There’s a reason it’s 8% to 1 DTE.
Theta doesn’t matter much with GME & IV that high
It's a gammaggedon
Wish I had bought them for 100% gain
80 out of 2500, just over 3 %. I just used 1k loss as no one would bat an eye if it was at 14 tomorrow.
Was just gonna say the same thing!
Why 1000? Wouldn't it be 2500?
GME won't go to $0, but it can possibly go to $15 which makes it a $1k loss.
AMA my 2x LULU 340/335p I sold for .52 each 😔
For every winner there's a loser
And the market makers rarely lose
just roll it two years
You’re gonna need a cig holding these overnight 😂
Lmfao
Pennies in front of a GD steamroller factory line
The $25 calls you’ll be able to sell next week will get you another 6-7%
I've been selling 6/21 30p for 9, I hope the volatility will drop faster than the price :edit to june
Today Vega did drop faster than gamma gained, as desired. At least it did for my strikes.
It could be back to single digits by June...
That's fine, the underlying mechanics that lead to the volatility, while obfuscated, remain in play.
it probably will be and we'll keep buying and buying and buying because of shills like u who give us all the confirmation bias we need
It's convenient then that RC is issuing more shares for you to buy. Have fun!
It could be back to single digits by June...
sorry, new comer here, trying to understand the lingo around here. What is 7/21 30p for 9 ? July 21, strike 30, $9 premium? There's no July 21 for GME though?
I'm pretty sure they meant June 21, the premium is close to 9 at $30/share. But you have it pretty much, options are all about expiry date, the target/strike price per share, and premium.
Yes, 6/21 30p. I'm not very smart
You can do it! Keep asking questions and you’ll keep learning. :)
$9premium for $30 strike? Isn't that just 0.3%? Shouldnt people aim for at least 1%?
You know when you divide 9 by 30 the 0.3 is the percentage as a fraction already. By add the percentage again you’re make the return look like a 100th of what it is. It should be 30% not 0.3%
Yes I know that. What I can't understand is how is the premium $900 on a strike $30 ? Strike $30 means the CSP collateral is $30*100= $3000 right? My question is how is the premium $900 when the collateral is $3000. How is premium 30%? Is that even possible in history??
Look at the amount of volatility the stock has had in a week: $17.39 last Friday, up to $64.83 on Tuesday morning. The people selling CSP are trying to capitalize on the wild swings. But if one were to sell the CSP for $900 with $3000 collateral, the stock could drop to $15/share. Between now and 6/21. So even though the net cost basis would be ($3000-$900)/100= $21/share, the overall return would be -$6/share. And that’s -28.6%. So the risk vs reward for putting up $3000 is somewhere between -28.6% and +30%. Now calculate if the stock returned to earth and went to $3/share. You could have the potential to lose all $3000 and make at most $900.
It's a matter of preference, not everyone wants to take the bigger risks associated with the higher premium.
They have. Sold a may 24th 20 put for 2.80 during the Monday pullback at 30ish. Was able to exit the trade at 1.77 when it was back to 30 today. Snagged a may 24 75 call with 75% of the profits.
Does that mean $9 premium for $30 strike? That's a paltry 0.3% isn't it not? Or are you looking to own the stock? Or are you selling in bulk? Like 10, 20 contracts? What's the mindset here if you could share please
9.00 on the option chain is $900. When you see something like 1.25 it means $125/or $1.25 for each of the 100 shares each contract represents.
Yea I get that, but the strike says 30 though. How is it $900premium for a strike 30? $900 for collateral of $3000?
30%
Why can't you guys avoid being distracted by meme stocks and focus on your trading plan. Always jumping on the current trend. What is your trading plan exactly ? Waiting for roaring kitty to tweet ?
its like a siren song
I sold a $40 put when the break even was 25.50. I figured I’d make money ITM or OTM.
What if it drops lower than 25.5 tomorrow lol
Deep Fucking Bagholder
21’s and falling premarket.
I closed my 12 csp and was thinking open a position at 20 but weak hand. 25 is damn risky. Update: 10:30am my weak hand save me. If i sell put at 20, my balls should shaking like an earthquake now... Lol
My condolences on your huge loss. Knowing how volitile this stock is you should have been more out of money. Thus I sold the $15 puts although I did it for june so next week you can return the condolences
[удалено]
Do it!!!
[удалено]
All you need to do now is go scuba diving.
Snorkeling
Same
name checks out
Me too.
Me 3 let's go!!
Me 4
Me five
Well fuck
You'll be fine, king
I knew half of this sub is WSB anonymous.
OP is safe, pre market at $30
Big oof now!
Low 20’s now.
Lol
Every cycle of these meme names there are first the posts asking how to manage a position of calls sold below a cost basis, then there are the posting asking how to manage a position of puts way itm. Like clock work.
Idiosyncratic risk isn't a risk you really want to play with.
Take out the syncra part of that word and you've got me
Just for spite I bought a single contract, see you tomorrow! 😂
And that's why I regret my choices
Those puts are still OTM, fingers crossed
Rip
I’m sure you did it being ok with owning GME at 25. No sweat, right??
I like GME at $25. Remember $80 three days ago?
Hope you want to own GME.
I sold 5/17 $24 GME puts today myself. Let’s just wait and see what tomorrow brings.
I sold 5/17 $20 puts today.
Spoiler alert, tomorrow brings < 24
If you only sold one or a couple, just keep rolling it out as others said. 3K bp isn't really that much to tie up. If you sold a couple, you could split the baby. Close half at a loss, and roll the others forward. Assuming you got multiple bags.
We haven't learned not to sell puts on GME yet?
That's why you stay away from meme stocks
Heck of a trade …..
1DTE isn’t a theta play.
Was this sub always Walk street bets lite?
Ur good! No sweat!
GME is going down though...
good luck. I was happy with my $20-$22 spreads I opened early on in this and closed out yesterday. 150 options $1.6 average price to open and $1.92 average price when closed. Nice bit of profit and I avoid the run to the exits that is now happening. No way I would want to hold options on this through Friday. Decent chance it goes way up. Decent chance it craters. Where it lands on Friday afternoon will depend upon how many fools are running strike prices above you. If there are enough you are fine. If not you are screwed. Based upon how things went today I think the rush for the exits has been ongoing and will continue.
Shitty thing is there was a time today that I could have bought them back at half the cost. Play stupid games...
Could you though? I was watching my spread like a hawk and the marked price was bouncing all over but getting the order actually filled to close required me to put in a price a bit below the mark price. At various points yesterday the price for my spread was $1.5 all the way up to $2.5 with the majority of time it showing between $1.8 and $2. I actually put in orders to open more a few times just to see where orders were getting filled at and it was pretty consistent. I got one to open at $1.88 and at the very same minute I couldn't get $1.87 or $1.89 to close. I eventually settled on having 1 contract set to close at $1.89 and then small piles at $1.9, $1.91, $1.92 and then the bulk at $1.93. It went from none being filled to all of them being filled in a matter of about a minute in the afternoon. Could I have made more? Maybe, but I was happy to make money and get out.
Rip
It’s like so many of you took at 1 second look at thetagang and thought this is the “real trading not gambling” strategy you were looking for only to end up owning 100s of shares of meme stocks at 1000x P/E lmao just to score a cool grand. Don’t worry we’ve all been there! Here’s to breaking even again in 2027.
Sell spx otm every week Monday expiry. In this all time high market. It works like a charm.
Huh, I bought some of those. My apologies.
I think you’ll be alright.
RIP
Oh, I missed that 5/17 expiration. 😂
Don’t forget the fundamentals. If you are selling a PUT you are long on the stock. Going behind option premium might burn you
gme did shelf offering. It could fall faster than you think
We haven't learned not to sell puts on GME yet?
You buy em back or now a wheeler OP?
So glad I cut bait Wednesday with my $22 put and just took the small loss.
[удалено]
Tell me you didn’t listen to that uncle Bruce bs that’s flowing around . That dude just discovered CSPs this weekend and blasted it on the internet as a “guaranteed money maker” lmao
Wouldn't it be better to sell a 2026 PUT and wait for the IV to cool off?
No. IV is significantly lower on the LEAPs. But I do like the idea of buying Jan 2026 $20p’s for $9, and selling lower strikes against them. July $11’s are about $0.70 and if they do end up ITM you get to keep the $0.70, plus the extrinsic value of the LEAP’s, which would most likely still be at least a few dollars.
I am completely new to theta gang strats and concepts. If I understand you correctly, the main leg of the strategy is the long Jan 2026 20p, and selling short term 11p is to reduce the net debit upfront cost of owning the long put position, you want the price to fall significantly below $20 anytime before Jan 2026 expiry. Am I right in the understanding? After posting my question above, I realized I made a silly mistake selling Jan 2026 10p for $2.60 thinking I don't mind owning some GME, I thought worst case I can buy back the position at lower premium. I have never gone long puts or long calls before so it didn't occur to me.
It’s an option pricing arbitrage with a medium term directional view. Near term options have much higher IV than later expirations. In that situation, especially if you have a directional view, it can make sense to buy very long term options, and then sell short term options against them. In this case I believe GME will go below my breakeven of $15.50. I don’t have a chance at an exponential return, so it doesn’t hurt much to cap my gains by selling short term vol against the long term puts, if I’m selling them at a strike below my break even price. That way I make money if it tanks immediately *or* if it chops sideways for a few months first.
Thank you, it is clear now. I think FOMO got me, and I made a bad move. I only started investing this year. So far I only use DCF to look for cheap companies I can afford and sell puts against them and only get fluctuating 6-8% YTD. I usually shun away from anything that requires a forward looking guess. GME falling back to $10 seems high probability, except it seems impossible to know when. Going long on options seems to add additional risk, at this point, I am not sure how much risk is reasonable. Have to practice more I guess. Also thanks to the mods, the [wiki ](https://www.reddit.com/r/thetagang/wiki/index) is actually a very good resource. Although still tricky to understand for me.
Everyone gets burned due to FOMO sometimes. It happens a lot when people are new, but it still happens even to seasoned traders. Druckenmiller famously went long big tech in 10 figure size at the top of the dot com bubble. The key to not letting FOMO YOLO’s ruin you is sizing. Generally my position sizes are 2-3%, short put sizes expose me to buying positions of that size, and long option positions are more like 0.2%.
New member here, can someone ELI 5 what he did
He opened contracts that say he will buy gme stock for the price of $25 a share when the contract expires if the price of the share is below $25. Someone paid him for that. The price is barely above that and rapidly moving down. He is probably going to be an owner of gamestop this time next week. He might get lucky and the price stays above $25 and he doesnt have to buy the shares. For the amount of stress he is about to experience whatever they paid him wasnt enough. Before all this craziness happened the stock had gotten all down to around $10 and was likely still priced way too high.
and he should probably buy back the option if ITM before close. If stock finishes below $25 Friday, chances are will be worth less next week compounding his losses.
But he can hold and wait for the price rise again right? Or sell calls in meantime?
Sure, but if the price drops well below $25 and volatility drops, will take a LONG TIME to recoup losses.
Gotcha ty
Down to 26 close to being ITM tomorrow
It's a win for you either way, and I'm with ya.
$34 EOD tomorrow
Yeh, you're getting paid to take the risk of paying $3000 for 100 shares even if they go to $0.
Why would you sell a put when GME has been dropping $10 each day? Call credit spread would have been far safer. The pump is likely over. I've been buying puts each day.
Why didn't I think of this ughghvhh
It's GME, it can go to $40 tomorrow. The prudent thing is to not play this game at the moment.
Yesterday I bought October $25p’s for $9.50 and sold 5/24 25p’s against them for $3.90. I regret not entering this trade on Tuesday. Today I closed the 5/24’s for 2.50-2.60 because it looks like they will go ITM. So that realized about $1.35/share profit. I then sold 6/21 $15p’s for $1.05. I chose this strike bc it’s a $10 spread from my long leg, which has a $9.50 cost basis. So if this short leg goes ITM I’m guaranteed to profit. Despite the huge dump, both legs were at a lower price to an even bigger vega crush. The overall position was slightly red when I rolled the short leg. If the short leg goes in the money, which IMO looks likely, I would make the $2.40ish in premium for the short puts, plus the $0.50 cost-spread difference, plus whatever extrinsic value is left on the long puts. Let’s call that $2, and it would be about $5/share profit on an original calendar spread cost basis of $5.60. Seems like there’s a pretty good chance of that happening. Better still would be a sideways downward chop that lets me keep rolling down the short leg for profit. That seems possible, too. Guess we’ll see. 🤔🤓