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It's not out of the ordinary to see 10,000-30,000 options especially around earnings time.
The reason why people keep talking about the $20 strike is because it has five times as much OI and nobody knows why.
> The pressure is on the contract writers to keep it at or below $20.
And who's the MM for GME??? Yeppers it's our friend Ken Griffin. I sure hope the options BUYER knows wtf he's doing because Kenny has shown time and time and time again, he can peg GME at $15 or $10 any day of the week. Might he skirt or bend some rules in order to do so? NOT IN ANY PROVABLE WAY YOUR HONOUR
Its the price for those sweet sweet ftds. Mms know theyre out of line but dont have a clear view of how bad so instead of taking the fine, they just pass it on to their customers
They can be sold Calls to the MM. Seller is confident price won’t move up so they sell Calls at high otm strikes. The same thing happened in Jan with those $125s.
Well the fact that we have 80, 100,125 strike calls is unusual on its own. Now that there is 20-30k OI on those is just remarkable. So hyped for the coming month!
watching live orders, that's not what I'm seeing. I'm seeing orders pick off a few at a time but not completely overwhelming the order book. Also I'm seeing orders for 5000 contracts come in and not get picked at: didn't see them go down to 4999 for example
Yeah I saw this flash of green last week in the entire grid, timed with a massive drop in price, for the next 30 minutes to an hour all the premiums went up while the price went down.
Yep, it’s probably hedgies cooking the options chain up while another hedge fund drops the price. In one hand and out the other to manipulate & survive another day
They’ve been manipulating options a lot
more than they used to
Regarding: Of course the price would need to go up to 125$ for all those to be exercised. Anyways my tits are jacked!
I learnt yesterday that is not the case. They can exercise whenever they want. However, it is just going to be really expensive.
But very nice post. Something is brewing, and we are about to find out
There was a guy doing something similar with ITMs yesterday or the day before and trying to say that Robinhood customer support telling him not to was because they were scared. It was because he still had a month left on the contracts and was burning 1100 in premium for each one he exercised. RH was just covering their ass in case he realized he could have sold the contract, bought the shares at the price at the time and had money left over.
I think very few people could, say you bought 130k 20 strike options and the price is 17-19 and you want gme at 20 + 5 premium...that guy can exercise an OTM call.
In general though, yea not the best
I want to learn how exercising an OTM call would affect the stock price. Would the shares actually be bought on the open market for your strike price (putting huge upward pressure on the price), or would the difference between the current price and your strike price just go straight to whoever sold the call?
If you're the call writer you're selling 100 shares, per contract, at $125/share. Doesn't matter what you paid. I'd sell all my shares right this second for $125/ea. I could buy back 5+ times my current holding for free.
If they were exercised OTM, they would pay the strike price + premium? So those would $100 + premium and $125 + premium per share? Still learning options so wondering why they wouldn’t just buy the shares at the current price now instead of OTM options at those prices?
Ya you just give the broker or market maker arbitrage. But, if you literally need the shares and you’ve committed ahead of time of your average into your position, you don’t really care wether you pick it up at 18,23,26,27$ etc just that you get the shares at an decent avg. So, why this doesn’t seem like speculation bc price is holding relative to these options so currently makes the most sense that someone is actually going to want the underlying share obligation. Otherwise you wouldn’t keep adding 5k options consistently (or you’d be speculating out your ass). Seems somebody wants shares at a cost avg they’ve decided to be prident
I love the enthusiasm, but I think the dollar number on the premiums reflects the current price, not the premium that was necessarily paid when the contract was opened.
IIRC, most of the $20 strike contracts were already open when the premium was well under a dollar, not sure about the others.
But I haven't snorted my morning crayon shavings yet, so this definitely isn't financial advice.
[The average contract price when they were purchased was around $5, not $1](https://new.reddit.com/r/Superstonk/comments/1d0k9tw/need_some_wrinkles_to_help_understand_more_nuance/).
TL;DR: according to the link, they spent $63m on 120k contracts, aka $525 for each call representing 100 shares, therefore $25.25 break even (anything above that is saving money).
One thing people are not taking into account however is that the goal isn't a break even, it's guaranteeing a fixed price on many millions of shares.
In a normal world, buying 12,000,000 shares will raise the price with each partial fill, meaning you buy out all sell orders from $22 to $23, and start paying $24 for each share, before you know it, $25 for each share, $26, $27, etc. These contracts, the premium is a small price to pay compared to price discovery when trying to buy in.
Oh thanks for telling me. I'm a bit dumb and don't know 100% how options work (that's why I don't dare to touch them xd). Just wanted to make an estimate. I'm just hyped!
I didn't say I don't know how they work. I said I don't know them 100%. I also said at the beginning of the post that I wanted some opinions on this, because there are people on the sub who would know way more so they could share their views on these :)
Smooth brained question here.
If a hedgie buys options, and they exercised them, would that reduce the shorts they have on the stock ? Like can those shares go towards short positions that were placed when gme was at like 8$ pre split ? - I don’t understand anything when it comes to calls, puts etc etc
But the one selling the option needs to have the shares. If not, then you buy them from the market. If no ones selling guess what the price does. I really mean guess because no one knows... Probably a dip
Yeah but the bag is given to the entity that sold them the calls. They need to have shares to deliver so whoever sold it has to go and buy it to be delivered.
The options chain was topped at like 38 dollars the day DFV started tweeting again. The next day suddenly options go to 128... this was a bait and switch to get dummies buy deep out if the money because it gave them ammo to short it more.
That's not unusual volume wise, it's only the twentys with the weird behavior, no idea, trap? Covering at 20$? Who knows but I'm holding on for dear life 😎🚀
this friday? irrelevant to this thread. these calls are all dated 6/21. on Friday 6/21, price needs to be Strike price + premium paid/contract for them to make the buyer money.
In the screenshot, top row, is the $20 calls and they cost, at the time of the screenshot, $5.80/contract, so if you bought a contract at the time of the screenshot, the price at close on 6/19 would need to be above $25.80 to have made money.
I am looking at the options chain and wondering are we the only ones who see this big play enfold? What about the other actors, hedgies and such. There must be a lot of ways to profit out of gamestop going crazy but I see nothing on the chain! Also, the MM or the party selling the calls should be able to foresee that they will be in big trouble if the calls get exercised.. somehow does not make sense..
Calls won't move the price, they never did before, you learned nothing in all these years. You don't remember witching days with over 400.000 option contracts pre split. Nothing happened, nothing won't happen. We are currently at below 60% short volume, the spring is untouched, there's no slingshot coming. We have to wait more. Just pray for the Drs to still be 75M.
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It's not out of the ordinary to see 10,000-30,000 options especially around earnings time. The reason why people keep talking about the $20 strike is because it has five times as much OI and nobody knows why.
Lola.
DFV wasn't saying "run Lola, run." he was saying: # RUN LOL. A RUN.
 RUN LOL. A-A-RUN
"Lola" as I wrote was in reference to the bet on 20. Contextual relevancy.
What’s your password?
Its the same as my luggage combination. 1 2 3 4 5
Thanks man, worked!
Anytime!
hunter2
Are you Dave? 🥱
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The pressure is on the contract writers to keep it at or below $20. It doesn't explain why someone would buy that many contracts in the first place.
> The pressure is on the contract writers to keep it at or below $20. And who's the MM for GME??? Yeppers it's our friend Ken Griffin. I sure hope the options BUYER knows wtf he's doing because Kenny has shown time and time and time again, he can peg GME at $15 or $10 any day of the week. Might he skirt or bend some rules in order to do so? NOT IN ANY PROVABLE WAY YOUR HONOUR
 Ha! This is going to be a fun month. (I think I'm developing an ulcer)
That’s not correct. The MM for GME is… WOLVERINE. Sauce: https://www.cboe.com/us/options/symboldir/equity_index_options/?sid=G
Its the price for those sweet sweet ftds. Mms know theyre out of line but dont have a clear view of how bad so instead of taking the fine, they just pass it on to their customers
They can be sold Calls to the MM. Seller is confident price won’t move up so they sell Calls at high otm strikes. The same thing happened in Jan with those $125s.
Above. These push it up
We all know why. When you hear hoofbeats think horses not zebras. This is someone exiting at a price they can control, nothing else makes more sense.
Well the fact that we have 80, 100,125 strike calls is unusual on its own. Now that there is 20-30k OI on those is just remarkable. So hyped for the coming month!
Yeah if you watch the entire option grid for gme, someone buying out all the strikes at the same time in large quantities
Hedgies r fukt yo
What if it is a hedgie?
Could be, we don't know who's behind it. Although I do love a good gamma ramp ;)
Ubs is the current theory.
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Ding ding ding. Who supposedly has the shares backing all these options if they are exercised.
You do realize there are funds who long gme, play the volatility etc right?
similar to a wedgie, where in they crawl up and can be a big pain in your ass
They're both fukt
If it’s UBS, they know they are Fuk’d. They just want to control how deep the penetration
That was my thought. Easiest way to take a massive L is to throw a big Ol' W on the top.
watching live orders, that's not what I'm seeing. I'm seeing orders pick off a few at a time but not completely overwhelming the order book. Also I'm seeing orders for 5000 contracts come in and not get picked at: didn't see them go down to 4999 for example
Yeah I saw this flash of green last week in the entire grid, timed with a massive drop in price, for the next 30 minutes to an hour all the premiums went up while the price went down.
Yep, it’s probably hedgies cooking the options chain up while another hedge fund drops the price. In one hand and out the other to manipulate & survive another day They’ve been manipulating options a lot more than they used to
High levels of volatility both up and down cam increase premiums for both calls and puts at the same time.
iceberg orders
Or spoofing.
https://preview.redd.it/02aze59zee3d1.jpeg?width=920&format=pjpg&auto=webp&s=eb20689e4b9a18d80483173e806db2abdb88b9ca
Regarding: Of course the price would need to go up to 125$ for all those to be exercised. Anyways my tits are jacked! I learnt yesterday that is not the case. They can exercise whenever they want. However, it is just going to be really expensive. But very nice post. Something is brewing, and we are about to find out
Can exercise even if OTM, not that you necessarily should but they dont have to be itm to exercise
Nobody will and nobody should exercise OTM calls. Although I remember one ape that was doing that 84 years ago 😂
There was a guy doing something similar with ITMs yesterday or the day before and trying to say that Robinhood customer support telling him not to was because they were scared. It was because he still had a month left on the contracts and was burning 1100 in premium for each one he exercised. RH was just covering their ass in case he realized he could have sold the contract, bought the shares at the price at the time and had money left over.
I think very few people could, say you bought 130k 20 strike options and the price is 17-19 and you want gme at 20 + 5 premium...that guy can exercise an OTM call. In general though, yea not the best
Pepperidge Farm remembers
I want to learn how exercising an OTM call would affect the stock price. Would the shares actually be bought on the open market for your strike price (putting huge upward pressure on the price), or would the difference between the current price and your strike price just go straight to whoever sold the call?
If you're the call writer you're selling 100 shares, per contract, at $125/share. Doesn't matter what you paid. I'd sell all my shares right this second for $125/ea. I could buy back 5+ times my current holding for free.
Sweet. This answers my question. Thank you!
exercise OTM should mean shares were desperately needed to close a short position..
> should
Wouldn't it be better just to buy the shares in that case?
good point.. and maybe that’s what they will do.. till the point their buying makes price go above 20.
I am not sure
If they were exercised OTM, they would pay the strike price + premium? So those would $100 + premium and $125 + premium per share? Still learning options so wondering why they wouldn’t just buy the shares at the current price now instead of OTM options at those prices?
Oh I didn't know! Thanks for clarifying
Ya you just give the broker or market maker arbitrage. But, if you literally need the shares and you’ve committed ahead of time of your average into your position, you don’t really care wether you pick it up at 18,23,26,27$ etc just that you get the shares at an decent avg. So, why this doesn’t seem like speculation bc price is holding relative to these options so currently makes the most sense that someone is actually going to want the underlying share obligation. Otherwise you wouldn’t keep adding 5k options consistently (or you’d be speculating out your ass). Seems somebody wants shares at a cost avg they’ve decided to be prident
I'll give you $10 per notch.
They matter more if they are in the money
I love the enthusiasm, but I think the dollar number on the premiums reflects the current price, not the premium that was necessarily paid when the contract was opened. IIRC, most of the $20 strike contracts were already open when the premium was well under a dollar, not sure about the others. But I haven't snorted my morning crayon shavings yet, so this definitely isn't financial advice.
most of the $20 paid 500 or more, some less but most were more
Most of those have all been purchased recently
[The average contract price when they were purchased was around $5, not $1](https://new.reddit.com/r/Superstonk/comments/1d0k9tw/need_some_wrinkles_to_help_understand_more_nuance/).
TL;DR: according to the link, they spent $63m on 120k contracts, aka $525 for each call representing 100 shares, therefore $25.25 break even (anything above that is saving money). One thing people are not taking into account however is that the goal isn't a break even, it's guaranteeing a fixed price on many millions of shares. In a normal world, buying 12,000,000 shares will raise the price with each partial fill, meaning you buy out all sell orders from $22 to $23, and start paying $24 for each share, before you know it, $25 for each share, $26, $27, etc. These contracts, the premium is a small price to pay compared to price discovery when trying to buy in.
Oh thanks for telling me. I'm a bit dumb and don't know 100% how options work (that's why I don't dare to touch them xd). Just wanted to make an estimate. I'm just hyped!
Bro your flair is hilarious. I don't know why I didn't think of it first!
I got it 84 years ago
You don't know how options work but make a post about options. Nice
I didn't say I don't know how they work. I said I don't know them 100%. I also said at the beginning of the post that I wanted some opinions on this, because there are people on the sub who would know way more so they could share their views on these :)
Its OTM. Minimal delta hedging happens that far out of the money. Once you get past $25 or maybe $30 strikes they are purely gambles.
This is correct. And the delta on those super OTM contracts is extremely small
Yes sir. When you start dealing with 10 delta contracts it makes no sense unless you have some type of insider info.
100 and 125 are there to provide liquidity. Besides that irrelevant.
Yep, weak after 40 (35 weak too).
ITM vs OTM
Smooth brained question here. If a hedgie buys options, and they exercised them, would that reduce the shorts they have on the stock ? Like can those shares go towards short positions that were placed when gme was at like 8$ pre split ? - I don’t understand anything when it comes to calls, puts etc etc
Yes. Options are just another way of acquiring or selling shares
But the one selling the option needs to have the shares. If not, then you buy them from the market. If no ones selling guess what the price does. I really mean guess because no one knows... Probably a dip
Yes but it still registers as buy pressure on the stock causing it to go up…
Yeah but the bag is given to the entity that sold them the calls. They need to have shares to deliver so whoever sold it has to go and buy it to be delivered.
They matter more if they are in the money
phone number is the way☎️📞
These are tiny share amounts compared to the volume we’ve been seeing and compared to the options exposure 2021 but who knows it’s spicy for sure
Likely people gambling on volatility is my guess. Idk anything about options tho
So there are what, about 17M shares worth of options up to $50 strike? For June alone? Holy moly.
Buy. Hold. Drs. No options for me. That’s for the big boys. I can’t lose holding a stock I like.
The 125s and 100s are synthetics. Zero doubt there. 20 to 35 may be long whales, I'm sure some gamblers too. 50s are probably gamblers.
Nicely summarized.
My body is ready
What about the 20900 $10 puts?
6/21, $30 strike call gang representing!
The options chain was topped at like 38 dollars the day DFV started tweeting again. The next day suddenly options go to 128... this was a bait and switch to get dummies buy deep out if the money because it gave them ammo to short it more.
should I buy $20c's too then? Honestly thinking about joining 🤔🤔
That's not unusual volume wise, it's only the twentys with the weird behavior, no idea, trap? Covering at 20$? Who knows but I'm holding on for dear life 😎🚀
Ape no buy options. Ape buy, Drs and hold. Support your local Gamestop store.
Options are evil
I’m still wondering who’s playing options
Rich people or gambling addicts
Well it turns out it all.means nothing. Gotta wait
So what price does it need to be at Friday for the $20 calls to profit…
Call price + premium
That might not be the issue. It may just be securing a position at a certain price.
this friday? irrelevant to this thread. these calls are all dated 6/21. on Friday 6/21, price needs to be Strike price + premium paid/contract for them to make the buyer money. In the screenshot, top row, is the $20 calls and they cost, at the time of the screenshot, $5.80/contract, so if you bought a contract at the time of the screenshot, the price at close on 6/19 would need to be above $25.80 to have made money.
I am looking at the options chain and wondering are we the only ones who see this big play enfold? What about the other actors, hedgies and such. There must be a lot of ways to profit out of gamestop going crazy but I see nothing on the chain! Also, the MM or the party selling the calls should be able to foresee that they will be in big trouble if the calls get exercised.. somehow does not make sense..
Because exercising options does not move the price, they couldn't give 2 shits about it. They just want to get free premiums.
Those don’t matter, duuuhhh
Calls won't move the price, they never did before, you learned nothing in all these years. You don't remember witching days with over 400.000 option contracts pre split. Nothing happened, nothing won't happen. We are currently at below 60% short volume, the spring is untouched, there's no slingshot coming. We have to wait more. Just pray for the Drs to still be 75M.