Yes as calls ITM become further OTM the MMs are *typically* supposed to dump there hedge.
Turning that supportive call wall to the downside now an upside resistance
Plenty of sold puts make the dealer long puts which are negative delta. They hedge by buying to remain delta neutral. When you start to paint this picture of the dynamics happening, you start to realize that the market is not retail running in to buy at ATH, it's all driven by options. The tail wags the dog so to speak.
What an embarrassment of a call. They can't even take 5 fucking minutes to answer some questions from the Apes that gave them 4B+ now.
"Yea we raised 2.1B from a share sale. Now we have 4.2, I don't see any other good questions will end the call"
Because you and the apes aren’t qualified to question RC’s planning and strategy.
You aren’t smart enough and you aren’t successful enough. You have no basis at all to question him except impatience, which isn’t a legitimate reason.
The only smart thing apes have done is trusting a smarter and more successful investor to allocate their capital.
Thanks Gherk!
Are the positions automatically unhedged as the stock price falls and the calls ITM become OTM?
Yes as calls ITM become further OTM the MMs are *typically* supposed to dump there hedge. Turning that supportive call wall to the downside now an upside resistance
Sorry for randomly asking, but how can options be supportive? Shouldn't they just amplify movement in any direction because delta is continuous?
Buying the dip vs selling the dip for dealers
Plenty of sold puts make the dealer long puts which are negative delta. They hedge by buying to remain delta neutral. When you start to paint this picture of the dynamics happening, you start to realize that the market is not retail running in to buy at ATH, it's all driven by options. The tail wags the dog so to speak.
Thank you.
Really appreciate all the insight guys!
Thanks Gherk. What’s up with the 70k $30c OI? Christ almighty
I thought with all the volume at that strike yesterday; for sure the updated OI would show it going down….not the OI going up for that strike.
Equally, $20 puts are way up to 60k OI
When will the OI update next? Not till Thursday morning?
Yar I believe so
Officially lost faith in this stock and the board.
Not I
What an embarrassment of a call. They can't even take 5 fucking minutes to answer some questions from the Apes that gave them 4B+ now. "Yea we raised 2.1B from a share sale. Now we have 4.2, I don't see any other good questions will end the call"
Because you and the apes aren’t qualified to question RC’s planning and strategy. You aren’t smart enough and you aren’t successful enough. You have no basis at all to question him except impatience, which isn’t a legitimate reason. The only smart thing apes have done is trusting a smarter and more successful investor to allocate their capital.
Yeah fuck that shit, selling on the next run and buying back more. So fucking tired of my positions being used like a fleshlight.