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Bone3421

Certifiably Surly
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Posts posted by Bone3421

  1. check out this trade on AMC, using Nov 19th expiring options:  Buy 50-strike put + Sell 45-strike put.
    pricing right now at 3.50 per contract = $350 deduction from your account.  max loss is losing the entire $350.  max profit is $150. 
     
    here is a plot of profit-loss curve at the expiration date in November, with stock price in X.  stock price at 46.50 your position is breakeven.  below 45 you get the max gain.  above 50 is max loss.
    image.thumb.png.f8aa4861f8d4478f857293a5110b81e8.png
     
    this is the profit-loss curve at an arbitrary time -- i set for next month at September 24th.  e.g. at stock price 38, your position is +$25  (which you'd rather ride until November).
    by the way, if you change the volatility parameter, the slope of this curve will change, but not by very much
    image.thumb.png.1cab2633f57b8e5934b486e8a1ac06e3.png
     
    AMC has been in a range of $30-40 for most of recent months, after slowly deflating from the squeeze
    image.png.23f5b43381bd3507023a8120446f1ec4.png
     
     
    basically, for a $350 expenditure, you have a good chance of turning a %50 profit by november, and your total risk is capped to that $350.  no margin calls.
     
    you could also drag out the expiration to December 17th and the play is largely the same.  could tweak the strikes if its your fancy.  long 55P short 50P costs $365 for max gain $135
     
    Sir this a gme thread
  2. Yes, yes.  Who in the EPL decided this should be the Saturday night primetime showcase?  Better?
    I'm sure it's similar to the NFL where they try to give everyone a primetime game...week 2 seems like a fine spot for this game to get it out of the way
  3. So what do we think will happen first....gme volume finishes below 1m for a day or the reverse repo exceeds 1T$

    Shits borked and these things might happen this week(tomorrow?)....

    Plus last time the monthly inflation numbers were 5% for 3 months in a row was the lead up to the 2008 crash....we'll see what July brings but may and June were 5%

    Store $$$ in the backyard for a few months???

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