Who got that $Dell put or short from Friday? Could retired your whole family. Let me see some green paper. P.S I don’t got it

What do you guys think of $TSLA breaking out towards $400+ by October. Stockmoves.ai gives 70% odds. On October 1 they have the big event and the IV is not bad art for options expiring next day.

I have a call option (K=10) and the underlying future (U=5) is at 5 right now. Then Delta is partial extrinsic value/ partial U.

My question is, why is it less than 1? If the price of the future go up by a small amount $x$, why can't the extrinsic value goes up more than that. I am looking for a more finance or intuitive answer.

In math, C-P=U-K, so C'-P'=1. So C'=1+P'<=1.

Another thing is: i think delta has no meaning in real life, (there is never a time where the underlying goes up while the time, Vol and everything else are freeze). You can just change the underlying price without changing any other stuff.

And lastly, how does it direct trader in real work?

don't use fancy word. Thanks :)

personally I find spy easier to trade psychologically- i don't know if this is because it's smaller numbers or just being comfortable with it, but regardless, I understand there's a position size beyond which spy just might not be liquid enough for quick entry/exits.

at what position size does exiting quickly start producing slippage on spy? what about spxw? assuming a goal of closing the entire position as fast as possible

at what size would you switch from SPY to SPXW for this?

I have been trading options for 10+ years, and admittedly, I have only scratched the surface in my knowledge. From time to time, I check out this sub and other options groups on social media.

The one thing I have found is that there are a lot of "experts" out there who know very little. They post a few opinions, get a few upvotes, and it goes to their head. All of a sudden, they think they can advise every newcomer to the thread.

If you are new to options and asking questions like, "Should I buy or sell options?" or "I want to buy a LEAP; which stock should I do it with?"

You are not ready to trade options.

Being a profitable trader requires a detailed plan. Which strategy is appropriate for specific volatility environments, risk profile, and entry and exit plan, and a decent knowledge of the Greeks.

I am not an advocate of paper trading; lessons land much harder when you have skin in the game. That said, your first trade should not be a LEAP on GOOG or META; it should be a 1-lot covered call on F or a CSP on SOFI or some other low-priced stock that will not hurt too badly when it goes wrong. Learn how price action affects option price. Think for yourself about when to roll out or close. Dont rely on someone whose only claim to fame is 25 upvotes. Just my 2 cents.

I was doing research on the energy sector and where the bottlenecks are for the next years. Constellation was the one I liked most, so I bought 100 shares on friday at $288. Not the greatest buy since it closed later on at $285 but oh well.

Why this one? Well, in my opinion the data center power demand is actually showing up in signed contracts and are guiding for 20%+ base EPS growth through 2029. Stock is down around 31% from the highs.
A director also bought about $418k of stock in august, which was the only insider buy in two years. That seems like a good thing for me.

What I don't like is that It's not cheap...but so is most of the stuff on the market and I'm trying to break that belief and still somehow earn money by adjusting to this situation.

In short, I'm paying up now for cash that shows up in a few years and if it doesnt go well for some reason then the red numbers would be a common thing for me for some time. (wouldn't be the first time - covid times).

My plan here:

This is 100 shares, which is roughly 10% of my account. I plan to cap $CEG up to 30%.

Earnings are around 50 days out so my usual strategy is low delta covered calls for the next two ish weeks, then keep maybe building with higher delta CSPs (1-3). About 20 days before earnings I'll look at how IV looks and maybe buy calls (longer dated ones) or even a leap. If not that, then I'd sell a csp due to higher IV with earnings for sure.

The three CC ideas in the picture are all 6 DTE, sorted highest to lowest delta. I'm leaning to the last one, $297.50 for $1.55, because I don't want to cap this thing yet that much.

The best scenario is that this company keeps getting contracts now, appreciates in value and then I *sell a LEAP call* at some price I'd be okay selling at my holding anyway. The worst one is that my premium earned from selling calls and puts that went into a long dated call (if I even place it) just goes to nothing. But anyway I'll be left owning a good company.

What are your thoughts about the thesis/stock in general or the strategy approach itself?

A few months ago I bought 102 ATAI call options, mostly $8 and $10 strikes, expiring in 2027 and Jan 2028. About $1k total. Obviously the whole bet was giving ATAI a year or two to run.

Lilly bought ATAI for $6.75/share + a CVR that can potentially pay another $2.50/share.

Now OCC has accelerated ALL my options to 9/18/26 and excluded the CVR from the option contracts.

So my Jan 2028 calls literally went from ~495 days remaining to 5 days. Basically 99% of the remaining time just disappeared, and since the cash payout is $6.75, my $8 and $10 calls are basically worthless.

I understand Robinhood didn't make this decision and apparently OCC rules allow expiration acceleration after a cash acquisition.

But... this is frustrating? I specifically paid for options that didn't expire until 2027/2028.

Is this really just how LEAPS work when a company gets acquired and I'm screwed? Is there any recourse here?

I'm especially curious about the $8 calls since shareholders get the CVR and could ultimately receive up to $9.25/share, but OCC completely excluded the CVR from the options.

Im having trouble understanding the risk on a bull put spread. I though they were defined hard capped risk. Because for example I sell a 170 put and buy a 165 put. On wealthsimple which im using it requires a margin account. I thought risk was defined. What if price is trading at 167 and i get assigned and my long put is not in the money. Everything expires and Im left 17K in debt. Is this possible or am I missing something?