Robinhood

AustinHorn24 said:
I bought a put option on GME for strike of $300 when the GME stock was at $312.00

The stock price briefly dipped below $100 when I closed today.

Option price = $4750 per 100 shares
# Contracts = 1

Total investment = # contracts x option price = $4750

Strike price value = $300 x 100 shares/contract = $30,000

Stock value at closing = 100 x $98 = $9800

Profit = strike price value - stock value at closing - total investment - commissions - fees = $30,000 - $9800 - 4750 - $0.65 x 2 - $1.00 = $15,447.70

Damn I should have bought 10 contracts instead of 1. Could have paid off my house early.

How do you like that math?
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In your first post you said the cost was $18,000+. Obviously, when you drop the cost to $4750, the math looks a little better. How do you like that explanation?
 
iatrogenic said:
In your first post you said the cost was $18,000+. Obviously, when you drop the cost to $4750, the math looks a little better. How do you like that explanation?
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If they have money in their pockets, does this mean they will FINALLY kick some money to Dion as a sponsor?
 
iatrogenic said:
I guess when you said

I, for some weird reason, assumed you bought an option contract for over $18,000. Not sure where I got such an idea.
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I've bought around a dozen or so options on various stocks over the last few days. Sorry I didn't detail each one of them for you.

Would you like me to post what happens when I close every single one of them?
 
AustinHorn24 said:
I've bought around a dozen or so options on various stocks over the last few days. Sorry I didn't detail each one of them for you.

Would you like me to post what happens when I close every single one of them?
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Not really sure you would know based on posts about this topic. Just keep hitting those grand slams hammering Hank.
 
Musburger1 said:
For those following the systemic corruption discussion.
Yellen Gets Ethics Waiver To Lead Regulator Meeting On Gamestop Insanity After Taking $810K From Citadel | ZeroHedge

Robinhood offers free trading (no commission). They make their money by selling data...to Citadel (so they can front run trades etc.). Yellen "earned" $800,000 in speaking fees to Citadel, some of which as recently as October. Now she will oversee the investigation. :smh:
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That information is so last week...hardly new for anyone following this thread from the beginning.
 
mb227 said:
That information is so last week...hardly new for anyone following this thread from the beginning.
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The information about the Yellen waiver was not “last week.” What the waiver represents is ongoing systemic corruption....which hardly anybody cares about. I imagine you could care less.
 
There are no heroes and no villains in the Gamestop Short Sell Attempt story. Short sellers are a useful part of the market process. Those inflating the price to make the short sell unsuccessful also did nothing wrong. If they make some money off of the deal, so be it. Some of them will suffer as much loss as the hedge fund managers. All these actions involve risk. They all acted voluntarily.

There's Nothing Wrong with Short Selling | Gary Galles
The GameStop Saga Unravels Stakeholder Theory | Jeff Deist
 
AustinHorn24 said:
BTW, if you think GME is a bubble (and it is) you can buy put options that are almost a guaranteed payday. You can wait it out too so you don't have to bet on the collapse happening in the next few days. There are put options available stretching all the way into March that will let you effectively short at $300-$325.

The only issue is the put option premiums are quite high. I bought a put option for GME with strike of $312 for March but the cost of 1 contract (x100 shares) is over $18,000. But the payout is over 90% return if the GME stock falls below $100, which it should by that point, probably much sooner than March.

Out of anything else in finance, it's a virtual guaranteed winner. Reddit buyers may stave off the collapse for a week or two, but after that this thing will crash and burn. If you read their stock forums, it's clear that many of them are already getting skittish and thinking about reducing their positions or cashing out completely.
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Hope you closed your position...spiked again today and even more in after-hours...
 
Short sellers add a lot of liquidity to a market. They also often act like a reality check on overvalued markets. But they can get burned badly as with GameStop. Short selling has been around much longer than any of us. It ain’t going anywhere.
 
I agree. Short selling also helps those who hold the stock to get a little bit of value out of a stock that is about to lose them money.
 
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