Institutions own more GME stock than private investors (And not even all the private investors will be holders and will buy/sell on volatility) Stop reading Superstonk which is 99% garbage. Stocks go up and down and to label that crime every time it happens is just daft.
I Was surprised to see so many 30 strike calls for this Friday’s expiration were still on the chain this morning as I thought a lot of them would be closing out at the end of the day yesterday. And now wonder how many are left after today’s move down.
10:51 There are just SO many "strange" decisions being taken. Let me give you an example: yesterday (July 18th) I decided that I had enough confirmation that $gme would not hit $30 this week (as my main thesis for the week was built on) so I added a sell order for 10 CC (Covered Calls) at strike $29. When I did, the premium was hovering around $0.7. I set my ask at $1.2 (I kid you not!) and every single one of the contracts were gobbled up within a minute and then the shares went from ~$28 to ~26 within 2 hours.
Thanks for your DD nothing wrong with some GameStop consolidation before we go parabolic GameStop can’t stop won’t stop 🚀🚀🚀 in Ryan Cohen the GOAT we trust
A few things. 1. From a broad perspective, I don’t think to OPs post that’s what market makers are doing in general. It’s based far too loosely on factors they can’t control. 2. For your post, a marker maker is not obligated to hedge any particular way. They very often will offset their risk using different products, other options, stock, etc. For options that are deeper ITM and nearing expiration, those will generally be hedged by the underlying directly. 3. Spoofing pertains to a specific activity carried out by algorithmic traders, less so market makers, where orders are placed and cancelled before fills rapidly creating a false “wall” of supply or demand.
Before watching the video: Macro market moves, options selling and dehedging led to massive sell pressure. It sure sucks but I think/hope bigger money is going to buy this dip and start the march higher. 🙏 And probably a lot of short selling.
After watch: Lower volume for sure helps but it does seem poised to continue until the short term buy the dip happens macro wise. I think Larry Chengs buy in sparked a little fomo which pushed us outside the range.
separate trades, so the cash for the shares would be removed from cash and sweep, then when adding long calls, the corresponding amount of cash for the position would then be withdrawn from cash and sweep. could use margin for either if the account is setup for it.
@esInvests so looks like my margin balance is: $0.00 Margin equity: ~$1200 Long Marginable value $1180ish. So I would be able to trade up to the 1200 under margin, buy a long call (not exercise due to insufficient funds i would assume), then sell the call when I'm ready to sell it (assuming profit has taken place) or close position for a loss no greater than premium paid (under margin), or roll it?
This was a more important comment than you think, because as I’m running through the options chain, in my mind, the answer to your question is in that information. You’ve highlighted for me I need to do a better job explaining what I’m inherently inferring from the data. Thanks for pointing out. Overall, it looks like activity was slowing down today over the previous couple of days.
well.. max pain tomorrow is $25 and there are about 27k calls on the $25 strike. I am willing to bet they will try hard to bring those OTM especially during an OPEX. hoping to get into some calls for sept. at EOD if they decide to do this fuckery 3 days in a row.
Quick question for clarity sake for all of your viewers. When you mention short calls and long calls. As you are a trader I interpret this to mean some calls that you purchased and some calls that you sold. I want to point this out because some of your viewers coming from the GME community might interpret this to mean short dated calls and long dated calls both of which you purchased. I don’t think this is the case however. I think you are purchasing bullish calls for far out and selling bearish calls for the near term. Again nothing wrong with it. But I just want to be clear that you’re playing both sides of this. Sometimes simultaneously.
hey there! thanks for calling out, your interpretation is exactly correct! long calls refers to calls that were bought to open, short calls refers to calls that were sold to open (at a different strike than the longs). so in my case, I'm trading a strategy called a ratio call diagonal, it's primarily a bullish position from the long calls but uses short calls against the longs to offset some of the theta decay on the position and provide returns from flat or slightly negative price movements. this video goes further into detail on the strat: ua-cam.com/video/IIcSjkSS80k/v-deo.html
@@OutlierTrading I’ll give the video a watch. It’ll probably be a good learning experience. Thank you! I made this comment and Wanted to point this out because too often people from GME don’t understand you can play both sides of this and will look down on those who sell calls…..predominantly from sheer ignorance on their part. I don’t think any of those types of migrated over here just yet, but they may in the future. Good luck with your trades!
interesting context thanks. I've seen tons of speculation of people like Roaring Kitty potentially selling covered calls, so I figured that was generally understood as a complimentary strategy. might be worth doing a video on it actually, thanks for the info!
I feel like, at this point, Johnny Knoxville should add the GME options chain to the list of stunts on “Jackass”. Dudes keep getting kicked in the junk and coming back for more.
If you had about 1500 shares at $28 and tomorrow the price dropped below $25, would you sell at $25 to re-enter at a lower price at a loss, or would you hold and wait for it to go back up? Ty for your great job @@OutlierTrading
i certainly wouldn't do that first one as it accomplishes nothing. i personally would flatten the position at whatever price i set before entry and then re-enter when it looks like it's moving how i want. i'm a trader, so my goal is to find things that are moving and to move with them. an investor might have a very different game where they'll hold things for extended durations waiting for the move to happen. neither is inherently right or wrong, but they each have their pros and cons.
back when the sneeze was happening with both GME and AMC, I used to watch TMI livestreams. i shit you not his stream would get taken down during the runs. it happened multiple times. a lot of people would buy calls using his stream going offline as an indicator. LOL Also, i believe algos "like" music. Everytime GME or AMC would breakout, a hype song someone made about GME or AMC would be played so that the stock would push. This amped up allll the people in the chat to a feverish pitch. Ken Griffen talked years ago about basically using AI to trade based off consumer sentiment. When you get thousands of people in a stream blasting songs called Boom Boom Candles hyping each other up in the chat, AI picks up on that. kinda like sharks smelling blood in the water. Roaring Kitty's last livestream showed it real time when he said he was ending the stream. GME dumped. Just like it did when he was scheduled to start. Just like it did when he began 25 minutes late. It sounds cuckoo for cocoa puffs but some of these ideas people have that might sound like tin foil, aren't. The overwhelming majority of it is Tin Foil. You can also see the Algo at work yesterday afterhours when RC posted Trump 665 times. check the chart of DJT at that moment. Ken Griffin was very proud to have the technology to trade based off consumer sentiment as he was being interviewed at a trade show I believe. The algos are trained to read and listen.
@@projectburpees lets not pretend like AMC wasn't, and often still isn't, linked to GME. Just because people don't like that people jumped into AMC doesn't mean it didn't happen. of course they are related. Just like all the meme stock runners from that time period are related. that's why they are running again. GME are the most elitest group of investors I've seen. after all of these years, it still surprises me.
@@pherhymeswithamc6399 if you understood the reason why amc has been force associated with gme for three years you wouldn’t debate it. Fact is one ceo and company works for no pay and has 4billion in cash on hand. The other ceo and company pays themselves handsomely and works for private equity. The companies aren’t related.
I scratched my butt on the outside of my basketball shorts, yet I still sniff my finger.... why? I am unsure. Then I clicked refresh on the computer and my collection of Aug calls had gone backwards 30%. Right now; at this moment.... I have sweat from my forehead mixing together with my crocodile tears running together down my face because my ass itches and I absolutely REFUSE to itch my ass ever again! Then again... perhaps if I don't sniff my fingers afterwards?? Who knows? Low volume. Barely watched today.
GME is and has been a meme stock since late 2020. What is happening in the broader markets might as well be in an alternate universe. As an example (I have these figures handy because I was there and kept a record) on Jan 27th (Yep THAT day) GME closed up 134%, yet TQQQ was down (8%), TSLA was down (2%), BTC was down (6.5%) and GME’s meme buddy AMC was up over 300%. TA is useless, and without volume these meme stocks are like sailing ships without a decent wind.
haha i've literally never shorted GME stock - what're you referring to? I continue to hold long shares, and had a ratio call diagonal on. the position I spoke about in here has a base position with long options with a smaller amount of short calls sold against it to help pay for the cost of theta on the long options. it's a bullish trade lol.
Don't apologize for taking profits. Other culty people gonna say paperhands this or you betrayed us that. Profits are profits, dont end up bagholding like everyone 4 years ago.
hahaha i say it way more as a joke in that the price didn't flip against me since it tends to do the opposite of whatever i do lol. but appreciate the sentiment all the same!
Trust me, whatever I do the flippin opposite happens
A literally universal sentiment. And we all somehow are universally also wrong. Trading is great innit?
Nobody is selling gme, it’s crime.
Institutions own more GME stock than private investors (And not even all the private investors will be holders and will buy/sell on volatility)
Stop reading Superstonk which is 99% garbage. Stocks go up and down and to label that crime every time it happens is just daft.
@@Lordslothable many are trying play options now it’s funny to me.
I Was surprised to see so many 30 strike calls for this Friday’s expiration were still on the chain this morning as I thought a lot of them would be closing out at the end of the day yesterday. And now wonder how many are left after today’s move down.
10:51 There are just SO many "strange" decisions being taken. Let me give you an example: yesterday (July 18th) I decided that I had enough confirmation that $gme would not hit $30 this week (as my main thesis for the week was built on) so I added a sell order for 10 CC (Covered Calls) at strike $29. When I did, the premium was hovering around $0.7. I set my ask at $1.2 (I kid you not!) and every single one of the contracts were gobbled up within a minute and then the shares went from ~$28 to ~26 within 2 hours.
this scenario doesn't strike me as that strange tbh
So the $30’s for tomorrow still didn’t sell? Wow, means something coming tomorrow
Thanks for your DD nothing wrong with some GameStop consolidation before we go parabolic GameStop can’t stop won’t stop 🚀🚀🚀 in Ryan Cohen the GOAT we trust
Was buying it at $25 when they had 1b in cash, still buying it at $25 now that they have 4b...
I’m starting to think those large call options coming in for the weeklies. Could
Be the market maker causing people to fomo in and lose their money
A few things.
1. From a broad perspective, I don’t think to OPs post that’s what market makers are doing in general. It’s based far too loosely on factors they can’t control.
2. For your post, a marker maker is not obligated to hedge any particular way. They very often will offset their risk using different products, other options, stock, etc. For options that are deeper ITM and nearing expiration, those will generally be hedged by the underlying directly.
3. Spoofing pertains to a specific activity carried out by algorithmic traders, less so market makers, where orders are placed and cancelled before fills rapidly creating a false “wall” of supply or demand.
Before watching the video: Macro market moves, options selling and dehedging led to massive sell pressure. It sure sucks but I think/hope bigger money is going to buy this dip and start the march higher. 🙏 And probably a lot of short selling.
After watch: Lower volume for sure helps but it does seem poised to continue until the short term buy the dip happens macro wise. I think Larry Chengs buy in sparked a little fomo which pushed us outside the range.
Thanks for the discount on calls 🍻
You bet!
If one has all funds locked up in gme (say 85 shares). Can they still buy long calls? Or does that premium come out like "buying a stock" immediately?
separate trades, so the cash for the shares would be removed from cash and sweep, then when adding long calls, the corresponding amount of cash for the position would then be withdrawn from cash and sweep. could use margin for either if the account is setup for it.
@@OutlierTrading ok awesome! Thanks for the reply!
@esInvests so looks like my margin
balance is: $0.00
Margin equity: ~$1200
Long Marginable value $1180ish.
So I would be able to trade up to the 1200 under margin, buy a long call (not exercise due to insufficient funds i would assume), then sell the call when I'm ready to sell it (assuming profit has taken place) or close position for a loss no greater than premium paid (under margin), or roll it?
Thanks for the info. Can you add in any insights about the stock for people who don't trade options?
This was a more important comment than you think, because as I’m running through the options chain, in my mind, the answer to your question is in that information.
You’ve highlighted for me I need to do a better job explaining what I’m inherently inferring from the data. Thanks for pointing out.
Overall, it looks like activity was slowing down today over the previous couple of days.
@@OutlierTrading That is great to hear. Thank you
well.. max pain tomorrow is $25 and there are about 27k calls on the $25 strike. I am willing to bet they will try hard to bring those OTM especially during an OPEX. hoping to get into some calls for sept. at EOD if they decide to do this fuckery 3 days in a row.
Just baiting people to enter call options and then pulling the plug towards the end of the week. Seems to be their play
I sold 1/5 for 28.70 yesterday. Today, I made a cash-covered put for 24.50 and paid me 2.01 for Aug 9. smooth braining it out here
Should be one comment over and over,... "we aunt doing this for us were doing it to cull the rich corporate structure" They in deep af 😂😂😂😂
Quick question for clarity sake for all of your viewers. When you mention short calls and long calls. As you are a trader I interpret this to mean some calls that you purchased and some calls that you sold. I want to point this out because some of your viewers coming from the GME community might interpret this to mean short dated calls and long dated calls both of which you purchased. I don’t think this is the case however. I think you are purchasing bullish calls for far out and selling bearish calls for the near term. Again nothing wrong with it. But I just want to be clear that you’re playing both sides of this. Sometimes simultaneously.
Yes he is bearish but hedging with buying regular calls.
hey there! thanks for calling out, your interpretation is exactly correct!
long calls refers to calls that were bought to open, short calls refers to calls that were sold to open (at a different strike than the longs).
so in my case, I'm trading a strategy called a ratio call diagonal, it's primarily a bullish position from the long calls but uses short calls against the longs to offset some of the theta decay on the position and provide returns from flat or slightly negative price movements. this video goes further into detail on the strat:
ua-cam.com/video/IIcSjkSS80k/v-deo.html
@@OutlierTrading I’ll give the video a watch. It’ll probably be a good learning experience. Thank you!
I made this comment and Wanted to point this out because too often people from GME don’t understand you can play both sides of this and will look down on those who sell calls…..predominantly from sheer ignorance on their part. I don’t think any of those types of migrated over here just yet, but they may in the future. Good luck with your trades!
interesting context thanks. I've seen tons of speculation of people like Roaring Kitty potentially selling covered calls, so I figured that was generally understood as a complimentary strategy. might be worth doing a video on it actually, thanks for the info!
We need small caps to rally as a whole. It helps keep the price up
I feel like, at this point, Johnny Knoxville should add the GME options chain to the list of stunts on “Jackass”. Dudes keep getting kicked in the junk and coming back for more.
Seems like a ton of shorting in the last 2 1/2 days after there was the GME tokenized stock coin announced.
So your watching $25 level to hold your shares?
hey man, yep that'll be when i'll re-evaluate the position
If you had about 1500 shares at $28 and tomorrow the price dropped below $25, would you sell at $25 to re-enter at a lower price at a loss, or would you hold and wait for it to go back up? Ty for your great job @@OutlierTrading
i certainly wouldn't do that first one as it accomplishes nothing. i personally would flatten the position at whatever price i set before entry and then re-enter when it looks like it's moving how i want. i'm a trader, so my goal is to find things that are moving and to move with them. an investor might have a very different game where they'll hold things for extended durations waiting for the move to happen. neither is inherently right or wrong, but they each have their pros and cons.
@@OutlierTrading Agreed. I am looking to swing trade as well. Currently down after today's move.
@@OutlierTrading Thanks again for sharing your good job, and for the reply. I keep learning.
you got jokes. LOL
oh, the trading software is all AI driven now. They see and react to you order before you even submit.
GME options is just like Roulette. 😆
back when the sneeze was happening with both GME and AMC, I used to watch TMI livestreams. i shit you not his stream would get taken down during the runs. it happened multiple times. a lot of people would buy calls using his stream going offline as an indicator. LOL Also, i believe algos "like" music. Everytime GME or AMC would breakout, a hype song someone made about GME or AMC would be played so that the stock would push. This amped up allll the people in the chat to a feverish pitch. Ken Griffen talked years ago about basically using AI to trade based off consumer sentiment. When you get thousands of people in a stream blasting songs called Boom Boom Candles hyping each other up in the chat, AI picks up on that. kinda like sharks smelling blood in the water. Roaring Kitty's last livestream showed it real time when he said he was ending the stream. GME dumped. Just like it did when he was scheduled to start. Just like it did when he began 25 minutes late. It sounds cuckoo for cocoa puffs but some of these ideas people have that might sound like tin foil, aren't. The overwhelming majority of it is Tin Foil. You can also see the Algo at work yesterday afterhours when RC posted Trump 665 times. check the chart of DJT at that moment. Ken Griffin was very proud to have the technology to trade based off consumer sentiment as he was being interviewed at a trade show I believe. The algos are trained to read and listen.
hahaha really fun information thanks for sharing!
Amc is not related to GME whatsoever except you guys know this.
@@projectburpees lets not pretend like AMC wasn't, and often still isn't, linked to GME. Just because people don't like that people jumped into AMC doesn't mean it didn't happen. of course they are related. Just like all the meme stock runners from that time period are related. that's why they are running again. GME are the most elitest group of investors I've seen. after all of these years, it still surprises me.
@@pherhymeswithamc6399 if you understood the reason why amc has been force associated with gme for three years you wouldn’t debate it. Fact is one ceo and company works for no pay and has 4billion in cash on hand. The other ceo and company pays themselves handsomely and works for private equity. The companies aren’t related.
So it was you Fredo all A- Long.
hahaha what a fucking classic scene.. super intense with that aggressive kiss and the "you broke my heart!"
lol game stop is going to run !!!! Tonight’s done nonbelievers will sell and the rest enjoy the parade
I scratched my butt on the outside of my basketball shorts, yet I still sniff my finger.... why? I am unsure. Then I clicked refresh on the computer and my collection of Aug calls had gone backwards 30%. Right now; at this moment.... I have sweat from my forehead mixing together with my crocodile tears running together down my face because my ass itches and I absolutely REFUSE to itch my ass ever again! Then again... perhaps if I don't sniff my fingers afterwards?? Who knows? Low volume. Barely watched today.
GME is and has been a meme stock since late 2020. What is happening in the broader markets might as well be in an alternate universe. As an example (I have these figures handy because I was there and kept a record) on Jan 27th (Yep THAT day) GME closed up 134%, yet TQQQ was down (8%), TSLA was down (2%), BTC was down (6.5%) and GME’s meme buddy AMC was up over 300%. TA is useless, and without volume these meme stocks are like sailing ships without a decent wind.
GME game over !
used to watch this guy daily, until he said he shorted gamestop stock
haha i've literally never shorted GME stock - what're you referring to? I continue to hold long shares, and had a ratio call diagonal on.
the position I spoke about in here has a base position with long options with a smaller amount of short calls sold against it to help pay for the cost of theta on the long options. it's a bullish trade lol.
Thats a very valid option strategy. Go back learn some
Don't apologize for taking profits. Other culty people gonna say paperhands this or you betrayed us that. Profits are profits, dont end up bagholding like everyone 4 years ago.
hahaha i say it way more as a joke in that the price didn't flip against me since it tends to do the opposite of whatever i do lol. but appreciate the sentiment all the same!
AMC IS A FRAUD THE PRICE IS A JOKE , TAKE THE MONEY AND RUN
"I get to make money. You don't"
Man this trap indicator Certainly Is Helpful 🫡
Whatchu mean
So the $30’s for tomorrow still didn’t sell? Wow, means something coming tomorrow
the 30's for tomorrow are heavy
I doubt it but never know