AMC volume spike

Challenger 17 said:

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Lol at Gamestop. That's why you never chase folks. I'm sure the angerporn on Wallstreet bets is epic right now.

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There is a LOT more where that came from.

Whew! I am net zero on GME with 50 shares left after two sales Friday and this morning.

Challenger 17 said:

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Lol at Gamestop. That's why you never chase folks. I'm sure the angerporn on Wallstreet bets is epic right now.

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Just got halted. What a wild ride

Im suprised there isnt more chatter on the fact that EXPR is just chugging along between $3-$4 dollars and didnt have a major hit on the macro sell off
Anyone think this could continue to build through the day and explode again?

Well that reversal didn't last long

What's up with MBIO? I can't find any news on this but sizable drop today.

Taking the plunge, trading options for the first time...bear with me, sorry.

So those $7.50 Feb Put on WWR for $2.00 look good right about now?

PINS
CLOV
PLTR
CLII
XL

CHEK breaking out after consolidating at the Model T line for a couple weeks, could have another run in it

McInnis 03 said:

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BT1395 said:

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Someone talk me out of dropping $5,300 on one AMZN 2/5 call @ $3,450 strike. I feel like (based on the 9,671 boxes on my porch last week) they're going to blow out earnings.

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If you truly feel like that's the direction you want, I'd find some value on call spreads that can give you a 4x-10x return if you get the move you want.

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Sorry to be an options infant, but is there an example of this you could share? From my limited understanding, it seems like a bull call spread could inhibit my upside (although reduce exposure too if things go the wrong way).

HalifaxAg said:

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Taking the plunge, trading options for the first time...bear with me, sorry.

So those $7.50 Feb Put on WWR for $2.00 look good right about now?

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You buying or selling?

If you are like me and you're holding WWR 7.5C's for AUG.....you may want to monetize them a bit. I just sold $10C's for FEB against them at $.50 each.

The thought process here is:

With my current cost on the $7.5 for Aug at $2.35, if the Feb 10's expire worthless I get to reduce my burden by $.50. If for some reason WWR get's Jiggy and shoots past $10 I can massage the position by rolling the short call out, OR sell the diagnoal early ($10feb/$7.5aug) and take advantage of the premium on the longer dated long calls, or I can get called out and make the difference in the values.

Just an idea to monetize something that may or may not move here.

selling

HalifaxAg said:

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selling

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Pretty good basis reduction if you're wanting to be put the stock. It's in the money, so you'll need $1 in share price increase of you're just hoping to profit from the premium and not end up in the money. Being ITM, you could get assigned at any moment.

anyone watching SSFT? Another "big" leg up today. 1.8mm avg vol (ten day) and 5.6mm today

BT1395 said:

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McInnis 03 said:

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BT1395 said:

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Someone talk me out of dropping $5,300 on one AMZN 2/5 call @ $3,450 strike. I feel like (based on the 9,671 boxes on my porch last week) they're going to blow out earnings.

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If you truly feel like that's the direction you want, I'd find some value on call spreads that can give you a 4x-10x return if you get the move you want.

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Sorry to be an options infant, but is there an example of this you could share? From my limited understanding, it seems like a bull call spread could inhibit my upside (although reduce exposure too if things go the wrong way).

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Yes, that's correct. It limits your upside, but also reduces your downside by a lot. So you know when you buy a spread, exactly what your profit and loss potential are. For instance, if you buy this call spread:

Company A stock is at $71:
If you buy a Feb 19 vertical (bull call spread) 75/80 strike
- Cost is a premium of 1.65, so your max profit is 3.35 (5.00 wide strike minus your premium of 1.65)
- Your max loss is the premium paid of 1.65
If you were to purchase just a 75 call for the same company
the cost would be a premium of 6.30, maximum profit is unlimited, max loss is 6.30
There would also be commissions that would need to be factored in on all trades.

Mostly Foggy Recollection said:

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My GME puts are very very green

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What strike do you have?

Mostly Foggy Recollection said:

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My GME puts are very very green

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Which ones did you jump on?

You're pretty much correct. Upside is "limited" but complaining about a 2x-5x return scenario (depending on the spreads bought and results) is an awesome first world problem.

Say you buy the $3450C for Feb 5 at $5635, and Amzn gets to $3405.....after earnings there will likely be an IV drop, you're OTM call may not hold it's value.....now with AMZN it still might, we don't know. Either way, you're still hoping for a $50pt run that would make or break your option......

Say you buy the $3350/$3400 call spread. Right now, it's going around $17.70 mid point.....that's the max loss, with a return of $50 on each contract being your max return. You could buy 3 of these for the same cost. That same move gets you to max value and puts your return at $5,000 per contract.

Yes, your return here would be 2.8x; however, infinite returns and the dreams of them often times cause us to make bad trades. Capped returns with probabilities that give us a better chance to return profit tend to make us better traders in the long run.

That being said..........mind the sig.

EDIT: And to be fair, here's the moonshot scenario. AMZN goes to 3800 post earnings. Your 3450C just got you a nice Chevy Tahoe or something, the spread play still nets you $50 per contract. That's the risk/reward scenario playing out. By playing it safer you capped your potential profit run. Such is life........

Also, right now we're so close to AMZN earnings that you're paying the inflation prices on the options you want to go long on. The nice thing about buying one and selling one is that you're taking a bit of that premium pop off of yourself by buying and selling at the same time.

McInnis 03 said:

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Mancini seems to like the fact that ES is trying to push back to 3840, and he's of the thought that if we get back to 3840 the near term bottom was just had.

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Sounds right, I think he is also of the thought we hit 3900 before any sizeable pull back.

1/29 60s. Bought at 6.50

Been on calls all morning...any solid CLOV entries at this point?

Mostly Foggy Recollection said:

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1/29 60s. Bought at 6.50

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I bought the 3/19 21 Puts for 2.60. yeah I think this gets there. Up 30% already

McInnis 03 said:

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You're pretty much correct. Upside is "limited" but complaining about a 2x-5x return scenario (depending on the spreads bought and results) is an awesome first world problem.

Say you buy the $3450C for Feb 5 at $5635, and Amzn gets to $3405.....after earnings there will likely be an IV drop, you're OTM call may not hold it's value.....now with AMZN it still might, we don't know. Either way, you're still hoping for a $50pt run that would make or break your option......

Say you buy the $3350/$3400 call spread. Right now, it's going around $17.70 mid point.....that's the max loss, with a return of $50 on each contract being your max return. You could buy 3 of these for the same cost. That same move gets you to max value and puts your return at $5,000 per contract.

Yes, your return here would be 2.8x; however, infinite returns and the dreams of them often times cause us to make bad trades. Capped returns with probabilities that give us a better chance to return profit tend to make us better traders in the long run.

That being said..........mind the sig.

EDIT: And to be fair, here's the moonshot scenario. AMZN goes to 3800 post earnings. Your 3450C just got you a nice Chevy Tahoe or something, the spread play still nets you $50 per contract. That's the risk/reward scenario playing out. By playing it safer you capped your potential profit run. Such is life........

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How many times in a row has AMZN jumped after earnings? Feels like every time the past year they've had good calls, seen a drop still, but totally recovered and mooned the next day

When you hedge, it's with options or stocks? Or both?