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My thesis, TSLA tested 465 range a few times this week and it got rejected multiple times even with this event leading up to the vote….i got til the end of month on these contracts…
NVO broke through 46 support which was major and tested it before closed so it’s a toss up
official ruling wont be til january but they effectively already signaled tariffs reversal and they're still barely moving. i think low-mid consumer is just too dead for the big boys to get excited bout these stocks yet.
why the fuck do you guys buy the most expensive options at earnings without protective puts
like instead of paying 5.6 for 15c when the stock is at 15 you could straddle 14 or 15 for NOV 21 for a total cost of about 2 per straddle which would give you complete downside protection and let you roll those options out longer after earnings
the IV is only like 70-80 on this stock crazy low for something this volatile and you dont have to worry about theta decay its either going to pump or dump
you could also sell OTM puts and use the premium to buy any options so you at least own the shares if it crashes I mean selling a 15p gives the same exact cost you paid actually more so could also make money two ways if you really plan on holding til 2027
I almost never buy naked calls especially in this environment
u want the hedge to pay increasingly more as it goes into further in into the tail outcome you're hedging out. a betting market doesnt do this because the outcome is binary and returns within 0 (wrong) and 1 (right) are linear. options profit accelerates into the tail nonlinearly thanks to gamma and there being effectively no ceiling.
it can always be worse than you think - if it really goes til jan 31, its then become much more likely it goes til mar 31 and you didnt get paid for this possibility in your jan 31 bet but your option would pay it.
There’s guys betting $50k a hand that swing millions… kinda crazy but it’s all relative. If you have a ton of money and you’re a degen you’re always at risk of losing it all, same as the broke fucks that take their entire paycheck and play it off til it’s all gone.
Watch the Donut King documentary
I love it. The truth is right in front of our eyes.
Nothing in the world would make you think this month would end flat. This week is down only 1.5%. SPY ends up today.
You matter so very little to the entire equation.
So get lucky if you can. And goon til your hearts content cause there is no other option.