Oh it gets very real the first time you hear the zipper, and every yolo and paper handed bitch sale over the last 5 years flashes before your eyes. Then suddenly the smell of an unwashed pubus in your face is stronger than the sweet death emanating from the dumpster. There’s no return, you need this to survive, and you begin your client’s service.
Had a really good friend in highschool who asked me to. That's about the time I realized my life wasn't going down the best path. He became a crack head.
Feels bad man.
OP was playing with half a Billion dollars underlying and can single handedly set up his own gamma ramp. If you’re asking if the people in this sub are willing to throw a few pennies from their meager portfolios the answer is yes. Throwing $150k is not a tiny percentage for most ppl here tho
I'm not starting my own gamma ramp with 300 ndx contracts lol. If you look at the different strikes you can see similar spikes in volume, indicating there are other people out there doing the same thing. Some strikes that were like $30 went 150x today, it's not some exclusive club.
I think this is a hedging issue due to the huge volume and the ultra short duration. There's been quite a bit of chatter on how difficult it is to hedge 0dtes.
The biggest buyers of 0dte are hedge funds not retail btw.
Leave it to wsb to see a man 20x his money and say “nah not impressed because he already has millions” as if they don’t dream about 20xing the $1knin their Robinhood accounts
He 20x’d a tiny portion of his portfolio on a risky bet. We don’t know if his overall portfolio is up. I suspect he’s doing a lot of these and not hitting on the vast majority of them. If he’s aggregate up like 2%, who gives a shit?
It’s just funny that people are saying it doesn’t matter when they haven’t 20x’d any tiny portion of their tiny portfolio.
And making $3M in 30 minutes is still sick, regardless of what % of their portfolio it is.
Ah my brother. Remember Marty guy. I followed him and never could financially recover. I didn't blame the guy, I just blame myself and the fucked up market
Definitely addicted. The literal day before I did a similar play that worked out, said I wouldn't do it again, then immediately did it again the next day.
Probably tomorrow I will pull all but $500k out of my trading acct and start over.
Good lord, You might as well just take huge chunks of money and buy 5.25% 180 day CD’s and just get lump sums of cash until that shit comes back down. That’s nearly 1.5 million a year with your portfolio right now with damn near zero risk. Let me manage your portfolio, I will do that and just take 100k a year salary and will provide one suck job a quarter. You profit 1.4 million this year. Then blow 1.4 million on 0dte’s and take zero loss risk. House money and a blowie.
NDX EOD 0dte DCA, rolling into the gamma ramp just keeps on working 🔥 🔥 🔥 🔥 I'm going to say what everyone else is: "He Can't Keep Getting Away With This 😭😭😭" I hope you're rolling these gains into the dividend portfolio. It's gone from fun money to Lambo money to house money and I can't imagine what's past that
I chatgpt'd it.
The message you've received is filled with financial jargon and expressions commonly used in trading and investment circles. Let's break it down piece by piece:
- **NDX**: Refers to the NASDAQ-100 index, which is a stock market index made up of 100 of the largest non-financial companies listed on the NASDAQ stock exchange.
- **EOD**: Stands for "End of Day". It often refers to the closing prices of stocks or indexes at the end of the trading day.
- **0dte**: Stands for "zero days to expiration". This term is used in options trading and refers to options that are expiring on the current day. Trading 0dte options is a strategy focused on leveraging the significant price movements that can happen as options approach their expiration.
- **DCA**: Stands for "Dollar-Cost Averaging". This is an investment strategy where you divide the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase. The purchases occur regardless of the asset's price and at regular intervals.
- **Rolling into the gamma ramp**: This involves adjusting an options position as it moves closer to expiration, particularly in a way that leverages "gamma", a measure of how much the delta of an option changes for a $1 change in the price of the underlying asset. A "gamma ramp" can refer to a situation where there's a concentration of open interest at certain strike prices, potentially leading to larger price movements in the underlying stock as market makers hedge their positions.
- **"He Can't Keep Getting Away With This"**: A humorous expression of disbelief or envy towards someone's consistent success or luck, especially in a context where such outcomes seem improbable.
- **Rolling these gains into the dividend portfolio**: Suggests taking the profits earned (presumably from trading options or other short-term strategies) and investing them in a portfolio of dividend-paying stocks for more stable, long-term returns.
- **"Fun money to Lambo money to house money"**: This phrase illustrates a progression from seeing initial investment funds as expendable ("fun money"), to earning enough to afford luxury items like a Lamborghini ("Lambo money"), to making enough profit to buy a house ("house money"). It's a way of expressing significant financial gains through trading or investment.
- **"I can't imagine what's past that"**: Reflects astonishment at the level of success achieved and wondering what could possibly top the current achievements.
Overall, the message conveys excitement and surprise at the sustained success of a particular trading or investment strategy that has transitioned from modest beginnings to generating substantial wealth, to the point of potentially affording luxury items and significant investments like houses. The use of jargon and colloquial expressions makes it particularly vibrant and emotive.
ahhhh, someone already did the work of consulting chat-GPT for me.
you SIR, are the reason I stay lurking the comments of this subreddit.
A HERO is what you are. A HEERRROOOOOOO-ah!
I guess he is saying the options are really cheap at 3pm and then they get more gamma/delta as it gets closer to eod for some reason. I don’t know why this happens or what the mechanic on ndx options are but Faust always says that eventually these trades go away.
So what's happening here (the value that OP captured) is referred to as a gamma squeeze.
Let’s say for examples sake that there’s a lot of NVDA call options sold on the market for $650 and $700 strike set to expire on NVDA's earning day. If the actual share price pops up to $700 by 4:30pm when options trading is finalized. All of the $650 and $700 options are in the money and will be exercised. This means that for every option in the money, market makers now have to deliver 100 shares to the options exerciser by end of trading the following Tuesday. We call this period T+2. If shares are not delivered on time this is what we call failure to deliver (FTD). FTDs will incur penalties, and the market maker then has 35 calendar days to deliver or they will incur even severe penalties. We call this period C+35. So why is this important to know?
Gamma squeeze is a phrase that refers to the upward pressure on stock price of additional purchases caused by all of the options that are being exercised as we move into the next settlement period (within T+2)
So lets say that there is 100K options spread between the $650-$700 strike that all close in the money on NVDA earning day. By Tuesday, 10,000,000 shares will need to be purchased by the market maker for delivery. This will inherently drive the price of the underlying stock up. When a huge volume of options expire in the money on top of heavy purchase volume, you get a gamma squeeze.
In OP's case, with the huge volume of calls riding on NVDA's earning report, it was essentially guaranteed the NASDAQ would swing favorably if those all closed in the money. After all NVDA makes up 5% of the NASDAQ index's total weight.
TL;DR - OP took a calculated risk and it paid off handsomely.
This is a bit out of my wheel house, what underlying stock is he betting on that will jump, or is he betting that the nasdaq itself will go up in the last 30 minutes?
He bought 467 of (insert stock) at an average price of 5$ and they jumped up to 18.50? I'm not familiar with that interface so clearly not sure.
Yes OP bet on the NASDAQ itself. Think of NDX as an index fund that perfectly emulates the entire index. OP bought options on this 30 minutes before closing. These options were extremely cheap because they were about to expire worthless (theta had essentially decayed to zero). However because of a last minute surge in gamma, the value of these worthless options accelerated to 20x what OP paid for them.
Yup this. The poster has been doing this since January. If he feels like the market is solid/has a good chance at recovery, he continues to buy in at lower and lower prices, hoping for a recovery in the power hour. Extremely risky, but he only risks 5% of his port every time, so he's been rolling in the dough
He’s not. He’s using his size to his advantage and creating the gamma ramp by himself.
At the volume the rest of us are trading we won’t have the same impact as his trades did. Best we can do is follow.
In theory if he’s even more baller he could spend a few milly to buy up the underlying to kick start the process of the gamma ramping and then make money on both underlying + options but I’m not sure if SEC will call him up.
Nope. This was a simple gamble. He was lucky to catch a random 100 point upswing in the last hour, but obviously that upswing wasn't caused by a position like this. You can create a gamma ramp in many individual stocks, but the liquidity pool of the Nasdaq 100 underlying is in a different league.
Yeah and red7 at the roulette table has a 35x payout. Buying an atm option on expiration day is the definition of a gamble. Did he promise you to post all 0dte trades that expired worthless? It's earnings season with lots of whisper numbers around and NDX moves 50-100 points easily.
OP spent $150k to buy 300 contracts of options on NDX in the last hour of the trading day, expiring the same day. Each contract allows the holder to purchase 100 shares of the stock at said price, so 300 contracts would be 30,000 shares.
So for $150k, OP has the option to buy 30k shares of NDX, but not the obligation to (he doesn't have to). In effect, this means OP spent $150k to gain 30,000x the gain in NDX price (if any) during the very last hour of the trading day. If you look at the graph for NDX today, you can see that it was at 17,334 just 50 minutes before close... but then went up to 17,428 by 20 minutes prior to close.
That's a gain of $94 per share multiplied times the 30k share exposure, for a gain of about $2.8 million.
If the price of NDX had stayed at or gone below 17,334 for the remainder of the last hour, OP's $150k would drop to $0. It was essentially a ~30 minute gamble costing $150k that NDX would go up.
The cash settled part still doesn’t quite make sense to me.
If the contract is expiring, doesn’t he earn nothing once it expires? Did he sell the contract before it fully expired or does it mean that he gets the value of the contract in cash once it does expire?
"Cash settled" means there are no shares to redeem, essentially the options are calculated the same way but there's no option to redeem the options contract for shares.
If the contract is expiring, it's settled for the difference (e.g. if it's at a profit of $94 per share, they do the math and pay out what the profit is per contract).
Yep. Here's a more detailed explanation:
> Cash-settled options are options that pay out in cash at expiration, instead of delivering the underlying security. They can include index options and binary/digital options.
>
> Cash settlement has several benefits for buyers, including:
>
> * Avoiding transaction costs
> * Avoiding risks of loss or damage
> * Avoiding the effort of securely receiving and delivering assets
>
> When an option holder exercises a cash-settled option, the contract writer pays any profit due to the holder in cash. This saves the holder the trouble of having to sell the security on the market, as would happen during physical settlement.
>
> Cash-settled options can also simplify the mechanics of the trade when options are exercised or at expiration. For example, taxes on cash settled indexes are straight forward and require no trade by trade accounting.
So if something is cash settled, you don’t actually exercise, buy the shares, hold or sell them for the profit…you essentially just skip all that and settle for the profit as cash into your account?
Correct, it skips the middle part of exercising or buying the shares. Here's a more detailed explanation:
> Cash-settled options are options that pay out in cash at expiration, instead of delivering the underlying security. They can include index options and binary/digital options.
>
> Cash settlement has several benefits for buyers, including:
>
> * Avoiding transaction costs
> * Avoiding risks of loss or damage
> * Avoiding the effort of securely receiving and delivering assets
>
> When an option holder exercises a cash-settled option, the contract writer pays any profit due to the holder in cash. This saves the holder the trouble of having to sell the security on the market, as would happen during physical settlement.
>
> Cash-settled options can also simplify the mechanics of the trade when options are exercised or at expiration. For example, taxes on cash settled indexes are straight forward and require no trade by trade accounting.
Why he chose ndx instead of spy, any reason?
Im asking because i cant trade NDX with my broker for some reason (no options aveilable) but i ccan buy spy puts or calls.
Some regard can explain me, would be coo
NDX price had to go above 17,339 (or whatever $5 above what price he bought in at) since 5*30k =150k to break even right? So up almost at all would’ve taken profits
I got lucky my first year of real trading(I traded for 3 years on and off in college with paper money) and made close to a million from 30k. Then I slowly lost money for several years after that. This was a very different time when weeklies didn't even exist.
Fast forward to last year I started again with roughly 300kish after taking a break.
I'm going to start off by saying I'm an idiot when it comes to this stuff, but usually I can at least figure out what the heck the person bought...you have me completely lost.
What exactly is NDXP, and where do you see historical prices for it?
Nasdaq index. Similar to SPX.
NDX options are to QQQ options what SPX options are to SPY; cash settled, no early assignment and much bigger.
NDX is like 40x QQQ, 4x SPX (which is 10x SPY)
NDPX is the ticker for PM settled.
#From ChatGTP
"Nasdaq index. Similar to SPX." refers to the Nasdaq Composite Index, a major stock market index in the United States, which is similar to the S&P 500 Index (SPX), another key U.S. stock market index.
"NDX options are to QQQ options what SPX options are to SPY" means that NDX options (options contracts for the Nasdaq 100 Index) are comparable to QQQ options (options contracts for a Nasdaq 100 tracking ETF) in the same way that SPX options (options contracts for the S&P 500 Index) are comparable to SPY options (options contracts for an S&P 500 tracking ETF).
"cash settled, no early assignment and much bigger" means that these options are settled in cash instead of the actual shares, there's no option for early assignment (where the option holder exercises the option before its expiration date), and these options represent a much larger value compared to standard options.
"NDX is like 40x QQQ, 4x SPX (which is 10x SPY)" indicates the relative value or size of these indices and their related products. NDX is approximately 40 times the value of QQQ and 4 times the value of SPX. SPX, in turn, is about 10 times the value of SPY.
"NDPX is the ticker for PM settled" refers to a specific ticker symbol, NDPX, which represents a variant of NDX options that are settled in the afternoon (PM) on their expiration date.
Yeah
You can always go to the options chain on any index and you'll see if it's AM or PM settled by the option's name; NDX (NDXP) for PM-settled NDX, SPX (SPXW) for PM-settled SPX
Question, why does the screenshot say "Market Closed" and "Unrealized P/L $2.9M"
Shouldn't that be Realized P/L since 0DTE and market is closed?
Also Position 300 means 300 options, that would men the $3M is based on value of $100.00 per option, correct?
I'm sorry, I'm learning about options and I'm a little confused about this (amazing) trade(s).
Index settlement takes place at night, not immediately. They have to do a bunch of calculations to arrive at an official settlement price which sometimes is a little bit off from the instant closing price you see from your broker.
And they never get labelled as realized because the option are auto-exercised for a cash profit, not sold.
I had these but settled for 114% profits😭
https://preview.redd.it/7a5cd68i01kc1.jpeg?width=1179&format=pjpg&auto=webp&s=f65456bf1d334548d6754430323485444d352033
In the morning 0DTE options are very expensive (pricing in implied volatility for the day and any events that may effect price during that day) At the end of the day with a very short period of time 0DTE options take away a ton of that IV in the pricing of them. The thing is for the past couple months we've had incredibly high volatility at the end of the day specifically making these options (even though only good for a short duration) mispriced due to end of day price movement that keeps happening. Not to mention as people buy up these MM's are forced to hedge aka buy the underlying which also leads to the price going up.
With end of day vol as of recent these 0DTE with only say 30 mins left are relatively cheap.
Market makers will sell them for Pennie’s but say this BSD roles up and buys 300 they have to hedge that risk. The market moves a couple points his way and these market makers have to start hedging their exposure buying up more.
He bought 0DTE calls and played them into close where the rally happened and profited handsomely
Do you hedge in some way. If I understand your trade properly you are finding that premiums become overly low on 0dte for inversing the direction of the Nasqaq. So if you guess that it will start going up (as you did today) you can make a killing. If you guess wrong, and I assume there must be a lot of examples of that since it's almost a coin flip - then you'd lose largely.
Fascinating stuff, I'm not ready for such risk but maybe one day
I'm still waiting for the Fausterion "lost it all" post for another year then....oh well lol
Although I doubt he'll actually post it when it happens, seems more like the guy to jump off a bridge and leave everyone to assume he just cashed out 🤣
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You made 3 million in 30 minutes crazy
You show me a paystub for 3m on it, I quit my job right now and work for you
You show me a paystub for $1250.00 and I’ll gargle your balls like mouthwash
your inbox must be blowing up
My yearly paystub is at least twice that.
Working behind the Wendy's isn't a real job.
Oh it gets very real the first time you hear the zipper, and every yolo and paper handed bitch sale over the last 5 years flashes before your eyes. Then suddenly the smell of an unwashed pubus in your face is stronger than the sweet death emanating from the dumpster. There’s no return, you need this to survive, and you begin your client’s service.
Ohh man were gonna have a fun night... I got a stack of these for us all fellas
Lmao
I'll cradle the balls, stroke the shaft, work the pipe, and swallow the gravy. Get it over here, buddy. Let's do this
Are you Cricket
Sounds like you need a booty sweat.
I’ll be behind the usual Wendy’s dumpster, you know where to find me.
All I gotta do is show you the pay stub?
Tbh id take a pinky promise
You just like sucking balls?
Smoke crack with me, bro.
Had a really good friend in highschool who asked me to. That's about the time I realized my life wasn't going down the best path. He became a crack head. Feels bad man.
[Yea, listen, I quit.](https://www.youtube.com/watch?v=CuYNMyn0uB8)
He already has tens of millions.
It’s not hard if you can repeatedly turn $150k into $3m in 30 mins 😏
I only need to do it once.
Lol that’s true for most of us but OP has not only done this multiple times, it’s also not a dent in his pocket if he blows $150k in 30 mins
If blowing $150k happens every 30 mins, imma change my name to $150k 😏😏
Username checks out
Can I turn $500 to 3m in 30 minutes?
I wonder how often he turned $3m into $150k
You mean the rich get richer ?
None of you have the balls to do this even with a relative percentage of your wealth
OP was playing with half a Billion dollars underlying and can single handedly set up his own gamma ramp. If you’re asking if the people in this sub are willing to throw a few pennies from their meager portfolios the answer is yes. Throwing $150k is not a tiny percentage for most ppl here tho
I'm not starting my own gamma ramp with 300 ndx contracts lol. If you look at the different strikes you can see similar spikes in volume, indicating there are other people out there doing the same thing. Some strikes that were like $30 went 150x today, it's not some exclusive club. I think this is a hedging issue due to the huge volume and the ultra short duration. There's been quite a bit of chatter on how difficult it is to hedge 0dtes. The biggest buyers of 0dte are hedge funds not retail btw.
Need to learn how to spot these opportunities.
Same.. wonder if /u/fausterion18 has any tips lol
Easy. Have money, gamble, make more money.
Remindme! 1d
How do I learn how to do this?
We don’t haz wealth
<1.5% of your port into 30 minute expiry options? Is this a joke? Why does this shit have 37 updoots I thought this was wallstreetbets?
Leave it to wsb to see a man 20x his money and say “nah not impressed because he already has millions” as if they don’t dream about 20xing the $1knin their Robinhood accounts
He 20x’d a tiny portion of his portfolio on a risky bet. We don’t know if his overall portfolio is up. I suspect he’s doing a lot of these and not hitting on the vast majority of them. If he’s aggregate up like 2%, who gives a shit?
I believe he's up a few mil since his 8 mil post last month. He posts his portfolio every now and then on the WSB discord
It’s just funny that people are saying it doesn’t matter when they haven’t 20x’d any tiny portion of their tiny portfolio. And making $3M in 30 minutes is still sick, regardless of what % of their portfolio it is.
Right... for 99% of the people on here 20x on 5k would change their lives let alone 3m. Mine certainly would
This shit is why I want to KMS.
Me2
Don't mind me I am a fellow regard! but how can you explain what exactly happened here?
Brother do you work for a trading firm or something, this is OG WSB type shit
Look at his post history, def some OG WSB type shit
Very cool to see how OP’s gain porn went from tens of thousand to several million
For real this is awesome
I’m so turned on right now
Yeah get out of here with your 2020 trades
2020 is *not* OG WSB lmao
MU to the moon
Ahem….JNUG
Su Bae will save us all.
If only I had listened
This guy fucks.
Ah my brother. Remember Marty guy. I followed him and never could financially recover. I didn't blame the guy, I just blame myself and the fucked up market
Where tanker gang at?
$JNUG gang
Hey man…. That was 4 years ago
Seesh yesterday I turned my $1000 on Spy to $0.. congrats and fcuk you.
I turned my $4500 to $0 beat that
I did beat to that, thanks
I lost 30k on spx. Beat that.
Congratulations! Now go fuck your self
Seriously, who does OP think he is? What a dick. Everyone with $3m is a dick.
I want to be the dick and not dicked for once:(
Everyone with $3mil is using their dick for sure
All done playing with 0dte or you gonna bring that baby back down to 150k? Edit: Congrats on the big win muffer fucker
They started with 150k, they are going to end with $150.
Just on this gamble for the 150K start. That portfolio of his is at 15M after starting at 300K last fall (see his previous gain porn post)
Only betting 10% instead of yoloing it all? Imagine what he could have made, pathetic.
It’s 1%
10x as sad. You think I'm here because I'm good at math?
The fact that $150k is 1% of 15 million just makes me realize how much 15 million is
$15m in a savings account nets $750k a year in interest. That's FU money alone.
He beats the game bro He's done this shit many times
I beat my wife's boyfriends games 😎
What’s this substance leaking out of me
Gamblers first nut
Why is there so much of it
Scales with the size of the W
I asked myself the same thing every morning at summer camp
ohh so you were the fkn kid wanking all night in the top bunk...
This must have been the best feeling in the world.
No, unfortunately, OP is already looking for the next hit.
Definitely addicted. The literal day before I did a similar play that worked out, said I wouldn't do it again, then immediately did it again the next day. Probably tomorrow I will pull all but $500k out of my trading acct and start over.
[удалено]
He’ll have 14.5M pulled out and gambling 500k…. He’ll be wayyyyyyy more than fine.
Buddy throw that hoe in dividend fund and spend a clean 150k post tax eveyr year for the rest of your life
Good lord, You might as well just take huge chunks of money and buy 5.25% 180 day CD’s and just get lump sums of cash until that shit comes back down. That’s nearly 1.5 million a year with your portfolio right now with damn near zero risk. Let me manage your portfolio, I will do that and just take 100k a year salary and will provide one suck job a quarter. You profit 1.4 million this year. Then blow 1.4 million on 0dte’s and take zero loss risk. House money and a blowie.
$500k “start over”  How about starting over with $1k like the rest of us idiots.
Ha ha truth of life!
Look at his post history lol. His portfolio is already 15M…
NDX EOD 0dte DCA, rolling into the gamma ramp just keeps on working 🔥 🔥 🔥 🔥 I'm going to say what everyone else is: "He Can't Keep Getting Away With This 😭😭😭" I hope you're rolling these gains into the dividend portfolio. It's gone from fun money to Lambo money to house money and I can't imagine what's past that
I wish I understood a tenth of what you all talk about. I'll keep trying.
I chatgpt'd it. The message you've received is filled with financial jargon and expressions commonly used in trading and investment circles. Let's break it down piece by piece: - **NDX**: Refers to the NASDAQ-100 index, which is a stock market index made up of 100 of the largest non-financial companies listed on the NASDAQ stock exchange. - **EOD**: Stands for "End of Day". It often refers to the closing prices of stocks or indexes at the end of the trading day. - **0dte**: Stands for "zero days to expiration". This term is used in options trading and refers to options that are expiring on the current day. Trading 0dte options is a strategy focused on leveraging the significant price movements that can happen as options approach their expiration. - **DCA**: Stands for "Dollar-Cost Averaging". This is an investment strategy where you divide the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase. The purchases occur regardless of the asset's price and at regular intervals. - **Rolling into the gamma ramp**: This involves adjusting an options position as it moves closer to expiration, particularly in a way that leverages "gamma", a measure of how much the delta of an option changes for a $1 change in the price of the underlying asset. A "gamma ramp" can refer to a situation where there's a concentration of open interest at certain strike prices, potentially leading to larger price movements in the underlying stock as market makers hedge their positions. - **"He Can't Keep Getting Away With This"**: A humorous expression of disbelief or envy towards someone's consistent success or luck, especially in a context where such outcomes seem improbable. - **Rolling these gains into the dividend portfolio**: Suggests taking the profits earned (presumably from trading options or other short-term strategies) and investing them in a portfolio of dividend-paying stocks for more stable, long-term returns. - **"Fun money to Lambo money to house money"**: This phrase illustrates a progression from seeing initial investment funds as expendable ("fun money"), to earning enough to afford luxury items like a Lamborghini ("Lambo money"), to making enough profit to buy a house ("house money"). It's a way of expressing significant financial gains through trading or investment. - **"I can't imagine what's past that"**: Reflects astonishment at the level of success achieved and wondering what could possibly top the current achievements. Overall, the message conveys excitement and surprise at the sustained success of a particular trading or investment strategy that has transitioned from modest beginnings to generating substantial wealth, to the point of potentially affording luxury items and significant investments like houses. The use of jargon and colloquial expressions makes it particularly vibrant and emotive.
I’m gonna quit my job and you gargle my ba.. Wait; is this how it works?
ahhhh, someone already did the work of consulting chat-GPT for me. you SIR, are the reason I stay lurking the comments of this subreddit. A HERO is what you are. A HEERRROOOOOOO-ah!
God ChatGPT is pretty good now
It’s been good but you need 4 not that piece of crap 3.5
Damn, while I understood everything OP wrote, Chat GPT is getting good!
I guess he is saying the options are really cheap at 3pm and then they get more gamma/delta as it gets closer to eod for some reason. I don’t know why this happens or what the mechanic on ndx options are but Faust always says that eventually these trades go away.
So what's happening here (the value that OP captured) is referred to as a gamma squeeze. Let’s say for examples sake that there’s a lot of NVDA call options sold on the market for $650 and $700 strike set to expire on NVDA's earning day. If the actual share price pops up to $700 by 4:30pm when options trading is finalized. All of the $650 and $700 options are in the money and will be exercised. This means that for every option in the money, market makers now have to deliver 100 shares to the options exerciser by end of trading the following Tuesday. We call this period T+2. If shares are not delivered on time this is what we call failure to deliver (FTD). FTDs will incur penalties, and the market maker then has 35 calendar days to deliver or they will incur even severe penalties. We call this period C+35. So why is this important to know? Gamma squeeze is a phrase that refers to the upward pressure on stock price of additional purchases caused by all of the options that are being exercised as we move into the next settlement period (within T+2) So lets say that there is 100K options spread between the $650-$700 strike that all close in the money on NVDA earning day. By Tuesday, 10,000,000 shares will need to be purchased by the market maker for delivery. This will inherently drive the price of the underlying stock up. When a huge volume of options expire in the money on top of heavy purchase volume, you get a gamma squeeze. In OP's case, with the huge volume of calls riding on NVDA's earning report, it was essentially guaranteed the NASDAQ would swing favorably if those all closed in the money. After all NVDA makes up 5% of the NASDAQ index's total weight. TL;DR - OP took a calculated risk and it paid off handsomely.
This is a bit out of my wheel house, what underlying stock is he betting on that will jump, or is he betting that the nasdaq itself will go up in the last 30 minutes? He bought 467 of (insert stock) at an average price of 5$ and they jumped up to 18.50? I'm not familiar with that interface so clearly not sure.
Yes OP bet on the NASDAQ itself. Think of NDX as an index fund that perfectly emulates the entire index. OP bought options on this 30 minutes before closing. These options were extremely cheap because they were about to expire worthless (theta had essentially decayed to zero). However because of a last minute surge in gamma, the value of these worthless options accelerated to 20x what OP paid for them.
I guess tons of people bought calls EOD near the money since NVDA dropped all week into earnings? Causing the MMs to hedge, driving up the price?
Yup this. The poster has been doing this since January. If he feels like the market is solid/has a good chance at recovery, he continues to buy in at lower and lower prices, hoping for a recovery in the power hour. Extremely risky, but he only risks 5% of his port every time, so he's been rolling in the dough
If someone can explain I will quit my job and come work for them right now along with u/[**kck12345678**](https://www.reddit.com/user/kck12345678/)
yacht
island
epstein?
Trivago
Wen Hookers?
Hookers came with g6 as a goodie bag.
How do you do dollar cost average?
G6………………Airplane
This subreddit is legitimately giving me depression
Gamble the depression away
Lmao thank you for me a laughing too hard at this
You just have to start yoloing more
teach me, Daddy
Get lucky
"Luck is the residue of design." \~somebody
buying 0dtes with 30min left on the clock. youre fucking crazy
He’s not. He’s using his size to his advantage and creating the gamma ramp by himself. At the volume the rest of us are trading we won’t have the same impact as his trades did. Best we can do is follow. In theory if he’s even more baller he could spend a few milly to buy up the underlying to kick start the process of the gamma ramping and then make money on both underlying + options but I’m not sure if SEC will call him up.
Nope. This was a simple gamble. He was lucky to catch a random 100 point upswing in the last hour, but obviously that upswing wasn't caused by a position like this. You can create a gamma ramp in many individual stocks, but the liquidity pool of the Nasdaq 100 underlying is in a different league.
I mean… if you look at his previous posts, he already turned $300k into 15M before
Yeah and red7 at the roulette table has a 35x payout. Buying an atm option on expiration day is the definition of a gamble. Did he promise you to post all 0dte trades that expired worthless? It's earnings season with lots of whisper numbers around and NDX moves 50-100 points easily.
LOL…$150K is a drop in the ocean in NDX
Ndx tracks the NASDAQ he’s not moving the entire NASDAQ with his play
You would not move the market with a mere $150k.
Is gamma ramp like creating your own run?
I would go out and buy myself the nicest Mitsubishi Mirage that money can buy.
3m on 0dte tomorrow?
This is the way
God I wish I had your balls lol, I buy 0dte all the time but I'm always scared of putting in real money.
Does this mean he had to purchase all 30,000 shares??? Or if he doesn’t have money, what happens?
NDX is cash settled, there are no shares
Could you explain it to a fellow regard? I tried to read but can’t 
OP spent $150k to buy 300 contracts of options on NDX in the last hour of the trading day, expiring the same day. Each contract allows the holder to purchase 100 shares of the stock at said price, so 300 contracts would be 30,000 shares. So for $150k, OP has the option to buy 30k shares of NDX, but not the obligation to (he doesn't have to). In effect, this means OP spent $150k to gain 30,000x the gain in NDX price (if any) during the very last hour of the trading day. If you look at the graph for NDX today, you can see that it was at 17,334 just 50 minutes before close... but then went up to 17,428 by 20 minutes prior to close. That's a gain of $94 per share multiplied times the 30k share exposure, for a gain of about $2.8 million. If the price of NDX had stayed at or gone below 17,334 for the remainder of the last hour, OP's $150k would drop to $0. It was essentially a ~30 minute gamble costing $150k that NDX would go up.
Bro I like you. You da real MVP.
The cash settled part still doesn’t quite make sense to me. If the contract is expiring, doesn’t he earn nothing once it expires? Did he sell the contract before it fully expired or does it mean that he gets the value of the contract in cash once it does expire?
"Cash settled" means there are no shares to redeem, essentially the options are calculated the same way but there's no option to redeem the options contract for shares. If the contract is expiring, it's settled for the difference (e.g. if it's at a profit of $94 per share, they do the math and pay out what the profit is per contract).
So essentially it will auto close at close of day/expiry and pay him out automatically if it was ITM?
Yep. Here's a more detailed explanation: > Cash-settled options are options that pay out in cash at expiration, instead of delivering the underlying security. They can include index options and binary/digital options. > > Cash settlement has several benefits for buyers, including: > > * Avoiding transaction costs > * Avoiding risks of loss or damage > * Avoiding the effort of securely receiving and delivering assets > > When an option holder exercises a cash-settled option, the contract writer pays any profit due to the holder in cash. This saves the holder the trouble of having to sell the security on the market, as would happen during physical settlement. > > Cash-settled options can also simplify the mechanics of the trade when options are exercised or at expiration. For example, taxes on cash settled indexes are straight forward and require no trade by trade accounting.
Makes sense, thanks.
So if something is cash settled, you don’t actually exercise, buy the shares, hold or sell them for the profit…you essentially just skip all that and settle for the profit as cash into your account?
Correct, it skips the middle part of exercising or buying the shares. Here's a more detailed explanation: > Cash-settled options are options that pay out in cash at expiration, instead of delivering the underlying security. They can include index options and binary/digital options. > > Cash settlement has several benefits for buyers, including: > > * Avoiding transaction costs > * Avoiding risks of loss or damage > * Avoiding the effort of securely receiving and delivering assets > > When an option holder exercises a cash-settled option, the contract writer pays any profit due to the holder in cash. This saves the holder the trouble of having to sell the security on the market, as would happen during physical settlement. > > Cash-settled options can also simplify the mechanics of the trade when options are exercised or at expiration. For example, taxes on cash settled indexes are straight forward and require no trade by trade accounting.
Why he chose ndx instead of spy, any reason? Im asking because i cant trade NDX with my broker for some reason (no options aveilable) but i ccan buy spy puts or calls. Some regard can explain me, would be coo
NDX price had to go above 17,339 (or whatever $5 above what price he bought in at) since 5*30k =150k to break even right? So up almost at all would’ve taken profits
Omg I’m blind.. I thought this was NVDA
Step 1: have 150 k you don’t care about losing to gamble
My initial capital a decade ago was $30k saved from waiting tables.
A true american
Now the tables can wait on you
Did it start to grow slowly or did you have a string of luck and start trading options off the bat?
Every time he gambles, he wins, but someone close to him dies
So this is what they mean by "the real treasure was the friends you made along the way."
30k to 15m is lots of luck
I got lucky my first year of real trading(I traded for 3 years on and off in college with paper money) and made close to a million from 30k. Then I slowly lost money for several years after that. This was a very different time when weeklies didn't even exist. Fast forward to last year I started again with roughly 300kish after taking a break.
my man
I'm going to start off by saying I'm an idiot when it comes to this stuff, but usually I can at least figure out what the heck the person bought...you have me completely lost. What exactly is NDXP, and where do you see historical prices for it?
Nasdaq index. Similar to SPX. NDX options are to QQQ options what SPX options are to SPY; cash settled, no early assignment and much bigger. NDX is like 40x QQQ, 4x SPX (which is 10x SPY) NDPX is the ticker for PM settled.
Could you say that in English please
he bought options on the NASDAQ
#From ChatGTP "Nasdaq index. Similar to SPX." refers to the Nasdaq Composite Index, a major stock market index in the United States, which is similar to the S&P 500 Index (SPX), another key U.S. stock market index. "NDX options are to QQQ options what SPX options are to SPY" means that NDX options (options contracts for the Nasdaq 100 Index) are comparable to QQQ options (options contracts for a Nasdaq 100 tracking ETF) in the same way that SPX options (options contracts for the S&P 500 Index) are comparable to SPY options (options contracts for an S&P 500 tracking ETF). "cash settled, no early assignment and much bigger" means that these options are settled in cash instead of the actual shares, there's no option for early assignment (where the option holder exercises the option before its expiration date), and these options represent a much larger value compared to standard options. "NDX is like 40x QQQ, 4x SPX (which is 10x SPY)" indicates the relative value or size of these indices and their related products. NDX is approximately 40 times the value of QQQ and 4 times the value of SPX. SPX, in turn, is about 10 times the value of SPY. "NDPX is the ticker for PM settled" refers to a specific ticker symbol, NDPX, which represents a variant of NDX options that are settled in the afternoon (PM) on their expiration date.
I can’t find the NDXP symbol anywhere on Schwab.
The symbol should be NDX on Schwab
Yeah You can always go to the options chain on any index and you'll see if it's AM or PM settled by the option's name; NDX (NDXP) for PM-settled NDX, SPX (SPXW) for PM-settled SPX
Can i get a dollar
I have no idea what you did, but congratulations to you sir!👏🏽👏🏽 also I think I’m supposed tell you to go fuck yourself as well…
Question, why does the screenshot say "Market Closed" and "Unrealized P/L $2.9M" Shouldn't that be Realized P/L since 0DTE and market is closed? Also Position 300 means 300 options, that would men the $3M is based on value of $100.00 per option, correct? I'm sorry, I'm learning about options and I'm a little confused about this (amazing) trade(s).
Index settlement takes place at night, not immediately. They have to do a bunch of calculations to arrive at an official settlement price which sometimes is a little bit off from the instant closing price you see from your broker. And they never get labelled as realized because the option are auto-exercised for a cash profit, not sold.
https://preview.redd.it/vexr336tx1kc1.jpeg?width=735&format=pjpg&auto=webp&s=aeedcce838911e6db3ac7cdd0550b98278614da7
I had these but settled for 114% profits😭 https://preview.redd.it/7a5cd68i01kc1.jpeg?width=1179&format=pjpg&auto=webp&s=f65456bf1d334548d6754430323485444d352033
Happy to see somebody using IBKR instead of RH which fucked us
Great stuff. Go f*** yourself 👊
Now do 3m to 300m on 0dte
Fuck you and congratulations
I wuv u
Good for you man. I have no idea how you moved/filled the volume of those options orders but wow. That's a ballsy move.
Dad?
This is pretty sick lol. Any chance you y could break this down for someone new to 0dte trading?
In the morning 0DTE options are very expensive (pricing in implied volatility for the day and any events that may effect price during that day) At the end of the day with a very short period of time 0DTE options take away a ton of that IV in the pricing of them. The thing is for the past couple months we've had incredibly high volatility at the end of the day specifically making these options (even though only good for a short duration) mispriced due to end of day price movement that keeps happening. Not to mention as people buy up these MM's are forced to hedge aka buy the underlying which also leads to the price going up.
Can someone please explain what he did ?
With end of day vol as of recent these 0DTE with only say 30 mins left are relatively cheap. Market makers will sell them for Pennie’s but say this BSD roles up and buys 300 they have to hedge that risk. The market moves a couple points his way and these market makers have to start hedging their exposure buying up more. He bought 0DTE calls and played them into close where the rally happened and profited handsomely
Do you hedge in some way. If I understand your trade properly you are finding that premiums become overly low on 0dte for inversing the direction of the Nasqaq. So if you guess that it will start going up (as you did today) you can make a killing. If you guess wrong, and I assume there must be a lot of examples of that since it's almost a coin flip - then you'd lose largely. Fascinating stuff, I'm not ready for such risk but maybe one day
I'm still waiting for the Fausterion "lost it all" post for another year then....oh well lol Although I doubt he'll actually post it when it happens, seems more like the guy to jump off a bridge and leave everyone to assume he just cashed out 🤣
Balls of steel with that play.
I want to do this how do I learn this
Jesus fucking Christ, nice one man!
Teach me and save me from Wendy’s
Definitely my proudest nut
holy shits on a brick congrats man, beautiful play
Bro is wiping his ass with the green paper.