You don’t get to use the premium, it’s held in escrow as collateral against the position. There is basically zero chance NVDA goes in the money on these, but that wasn’t the goal. The real way this trade is profitable is any spike in volatility will decrease the spread. I.e: I opened the spread and received a $29.99 premium by putting up $0.01 in risk. NVDA earnings has a 5-7% run up in a few weeks… (very possible, look around at all the insane volatility) Now the spread is “more likely” to hit, IV increases, and there are buyers for $26-$28. I close the position for $27 and keep $2.99 x 100 x 225 =$67,275.00 for ~$250 in risk. This play is about as dumb as buying single leg call options that are deep out of the money. It’s dumb, and gambling, but not as regarded as the millions of people in this sub that don’t actually understand options.

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Absolutely. I was short META from $700, covered at $655, and flipped long at $648. I don't really target gaps, but the fact that this fell all the way to *May* prices was insane. A nearly six month bull run getting erased this way is something you might expect if a CFO got caught cooking the books or a company's flagship product was getting recalled for causing fatalities. This seems like it was just a perfect storm of profit-taking and panic selling. I don't necessarily expect a lightning quick recovery, and it very well could dip a bit more if there's a weak market next week, but opportunities like this don't come around too often.

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>That would be insane for a company that is such a massive conglomerate with so much success to go down to that level well thats ironic because I bought after a 75% decline - and people were saying it was going to 0 lol im just telling you - you just fomod into buying at the peak of a 7x return bull run and your downside risk is massive

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Hot damn, I might have actually got into one of those +10000% biotech stocks before the massive run

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Didn't have time to dress up for Halloween, I'm just gonna show the kids my full port of Monday expiry options, they'll run away screaming

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Wow in the biggest bull run there has been, good 👍 

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run the number and you will see that 7,200,000 x ( .05 / 360 ) = 1000 per day. The English i used was already understood to be per day carry cost, not the compounding. yet we are on Reddit, so I can see your point clearly and have been laughing about it.

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After that free fall end of day I can’t chance holding for a loss again so had to take my $4300 profit and run (was down 12k total so now at 7700)

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Insane week bull run to thursday expected good news with gaps up everywhere, massive earnings beats pumps, last friday of the month.... 'whyyyy we duuuumpin' 😭' Regards gonna regards 🤷

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Perhaps ATM strikes are better for me in the long run

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