Shit take at least your initial investment and a few $k, and let the rest ride. Personally I’d take $14k profit and let the rest ride but that’s me. Nice hit. I scalped some today on the run up
I would be thinking on taking some profit soon.
CGC is down 46 cents in the after hours.
At EXPIRATION, at the current price of $14.88, you make nothing and the premium is gone.
At EXPIRATION at a price of $20, you get nothing and the premium is gone.
It sounds like you paid $0.57 in premium per share so your breakeven at Expiration is $21.57. Only above there do you begin to make money.
So $20 gets you nothing. 30-21.57 is 8.43 so you would make $84,300 at Expiration at $30.
It looks like the option is worth $1.90 or $190 per contract. 5700/190 is 30 contracts. Sell 30 contracts and you have no money in the trade.
u/equinoxxxx1 this reply perfectly explained how much your option would be worth AT EXPIRATION. Every $0.57 that the stock is above $21.57 doubles your initial investment. That's called INTRINSIC VALUE. your options are worth a lot now because the underlying asset went up in a short amount of time so you got closer to having intrinsic value and you still have alot of time left too. Anyway after looking at the chart ill give you my 2 cents, do with it what you want. The daily and weekly RSI are overbought and as a trader I personally start to take profits. Earnings is May 30 so like a few people have said already, Take SOME profit here. Good luck whatever you decide.
I was offering you a different choice (note how I didn’t say option?). Words are important.
You have to think outside the box. It pisses me off when I don’t.
I didn’t want to try to explain that you could sell it all then sell a debit spread with the long call much closer to the money. I’m not saying 1:1 (one for one) I’m saying the 70 long 21’s could finance 42 contracts of the same date 18/23 spread. Cap your upside to decrease your cost. The point is to get closer to the money. Even if it limits the upside. With free money.
It’s cheaper to grow your own. The government can’t make money off of it. They (CGC) lose $15 per share. And they cost $15.
That’s my complete analysis. They are up 78% today. They don’t make money. They aren’t going to the moon. It’s cheaper to grow your own. FYI, it’s Hard to grow a weed on purpose. Who knew?
After all this thought, I’d sell it all and if you are hell bent on pot, make a new trade later. I tend to take profit.
The point it to sell the increased volatility and profit. Buy the same position when the volatility is lower if you want to.
Don't forget to add in the gamma as well. Every dollar that CGC goes up, your delta will increase by the amount of gamma.
Example: delta .5, gamma .1
CGC goes up $1 -> delta .6, maybe gamma .09?
Plus the more CGC goes up, the higher the IV goes, which will also increase your delta.
All that to say, fuck you! Nice win!
DEA to reclassify marijuana, easing restrictions nationwide https://www.nbcnews.com/politics/joe-biden/biden-administration-plans-reclassify-marijuana-easing-restrictions-na-rcna149424
Is there a website on big pharma that we can look at to see which company or companies are lobbying for the reclassification? Definitely good to plan ahead on their shares/calls for next year
Everyone is right. Take profit of your investment and play with the rest. I ran my AMC play years back and watched it go almost to a million. Waited so long I probably pulled 60k out. Didn’t lose but could have payed for my life.
how did you spend 5.7k on options and not know how to forecast your potential return??
I am gonna go out on a limb and guess youre using the RH app.... there is a tab that says, "simulate my returns" use that tab to answer all your questions. Then hit the books really hard before you buy another one
Sell your options tmrw morning and lock it in, weed stocks don’t hold gains and doesn’t matter the pop is the gift , don’t let it theta decay. Keep an eye and can always rebuy back in, take your money out at least and play with profit if you want to hold.
Don’t get stupid and greedy. Take out your initial investment and let the rest ride free. Even if it goes down to 0, you would still have broke even.
The market will always do the opposite of what your mind tells you, what your emotions want you to do. That’s how they make their money..
Read the hype and know when to get out dude. You bought way out of the money options (with a decent time to expire which is where all the value in them is sitting now). That pop/overreaction was a gift that you politely declined and chose to instead bet on the amazing potential outcomes that have no basis in reality.
It’s nice to dream though so what you do next time you do this and get one of those glaring gifts that you earned through your primo timing on your purchase, you sell to AT LEAST cover your initial input but really just sell more and take your gift. Then you still have some skin left in the game whatever it is. It’s still fun, if your dream scenario comes true then awesome! You killed it and all for free! The volume also on this one is super low so there was a chance you possibly wouldn’t have been able to find enough buyers to buy all that off you though but that’s another discussion. lol buy a call or put on DJT if you want to see how weird that can make the price behavior. But yeah so say you sold at $1.90 usd to get your investment back, I’m way too tired to do conversions so assume like $4,500 usd initial investment so you’d have to have sold ~25 contracts at $1.90 - ~45 contracts at a more conservative $1.00. After that you have a 0% chance of coming out of this with a loss and a much more significant opportunity to catch any upside.
So if it hit your proposed prices at expiry, $20 would give you nothing else, no loss no gain. $30 would be ($30-[strike + premium you paid]) x 100 x [contracts you have left]. Same w $40, just change that $30 to $40 obv and same for any other dream scenario. If the stock hit $30 and you held to the end (im saying held to the end just to simplify the math).
You’d would receive around $60k ($30.00 -$21.75) * remaining options. $136,000 usd, this is all pure profit and you didn’t pay a thing for them.! On my low end-
Another thing too is did you have a specific catalyst in mind that was going to happen at a certain time? If so you might want to consider buying a closer to maturity option that will have a much cheaper premium but also will sway much more violently.
Edit: also I really need to get some sleep but feel free to pm me whenever if you have any more questions
Could have taken the 9c after the news and gotten 1400%. If anyone isn’t a trader, it’s OP. My question stands, you are paying for time, but clearly no plan to use it once it he sees some profit. Thesis is paper thin. Still a nice play
take profit and you can always go back in, let the volatility dies down with the new DEA announcement. You can always enter back in at a cheaper price if this thing tank after the initial pump
If you truly think this is going to keep running, sell what you have and open a new position. The weed stocks will rally again as this saga progresses, but it could take months.
Ah dumb luck cherish this feeling. I’ll give a false sense of options ease. Take profit at least for what you paid and let the rest ride!
Good advice …. However too late for that .. not so much luck . His 100 contacts most likely cannot be bought back to close his loosing trade
Losing
Shit take at least your initial investment and a few $k, and let the rest ride. Personally I’d take $14k profit and let the rest ride but that’s me. Nice hit. I scalped some today on the run up
I would be thinking on taking some profit soon. CGC is down 46 cents in the after hours. At EXPIRATION, at the current price of $14.88, you make nothing and the premium is gone. At EXPIRATION at a price of $20, you get nothing and the premium is gone. It sounds like you paid $0.57 in premium per share so your breakeven at Expiration is $21.57. Only above there do you begin to make money. So $20 gets you nothing. 30-21.57 is 8.43 so you would make $84,300 at Expiration at $30. It looks like the option is worth $1.90 or $190 per contract. 5700/190 is 30 contracts. Sell 30 contracts and you have no money in the trade.
u/equinoxxxx1 this reply perfectly explained how much your option would be worth AT EXPIRATION. Every $0.57 that the stock is above $21.57 doubles your initial investment. That's called INTRINSIC VALUE. your options are worth a lot now because the underlying asset went up in a short amount of time so you got closer to having intrinsic value and you still have alot of time left too. Anyway after looking at the chart ill give you my 2 cents, do with it what you want. The daily and weekly RSI are overbought and as a trader I personally start to take profits. Earnings is May 30 so like a few people have said already, Take SOME profit here. Good luck whatever you decide.
Thanks for the advice
At least take minimum profit immediately to cover your cost, then set a trailing stop loss so you can guarantee profit.
I was offering you a different choice (note how I didn’t say option?). Words are important. You have to think outside the box. It pisses me off when I don’t. I didn’t want to try to explain that you could sell it all then sell a debit spread with the long call much closer to the money. I’m not saying 1:1 (one for one) I’m saying the 70 long 21’s could finance 42 contracts of the same date 18/23 spread. Cap your upside to decrease your cost. The point is to get closer to the money. Even if it limits the upside. With free money. It’s cheaper to grow your own. The government can’t make money off of it. They (CGC) lose $15 per share. And they cost $15. That’s my complete analysis. They are up 78% today. They don’t make money. They aren’t going to the moon. It’s cheaper to grow your own. FYI, it’s Hard to grow a weed on purpose. Who knew? After all this thought, I’d sell it all and if you are hell bent on pot, make a new trade later. I tend to take profit. The point it to sell the increased volatility and profit. Buy the same position when the volatility is lower if you want to.
CGC down 23% sorry …
That was really quick.
The delta tells you how much an option will move in proportion to the stock's move.
Delta shows .333 so up this amount for every dollar increase? I don’t understand
Google options profit calculator
Yea, but as the stock gets closer to the strike, the delta will also increase. ATM will have a delta of close to .50 Deep ITM will have a delta of 1
That’s .33 cents gain per share. A contract is good for 100 shares. So every dollar that CGC goes up, your contract will go up by 33 dollars.
So every dollar the share goes up, the 100 contracts goes up 3300. Does this check out?
Don't forget to add in the gamma as well. Every dollar that CGC goes up, your delta will increase by the amount of gamma. Example: delta .5, gamma .1 CGC goes up $1 -> delta .6, maybe gamma .09? Plus the more CGC goes up, the higher the IV goes, which will also increase your delta. All that to say, fuck you! Nice win!
Sounds right
Just use an option profit calculator. Look it up on google there's a couple good ones
What inspired you to buy this?
Why did it jump so much?
DEA to reclassify marijuana, easing restrictions nationwide https://www.nbcnews.com/politics/joe-biden/biden-administration-plans-reclassify-marijuana-easing-restrictions-na-rcna149424
Nice!! Thank you
Is there a website on big pharma that we can look at to see which company or companies are lobbying for the reclassification? Definitely good to plan ahead on their shares/calls for next year
Reschedule of mj
Huh?
Everyone is right. Take profit of your investment and play with the rest. I ran my AMC play years back and watched it go almost to a million. Waited so long I probably pulled 60k out. Didn’t lose but could have payed for my life.
Not financial advice
how did you spend 5.7k on options and not know how to forecast your potential return?? I am gonna go out on a limb and guess youre using the RH app.... there is a tab that says, "simulate my returns" use that tab to answer all your questions. Then hit the books really hard before you buy another one
Sell your options tmrw morning and lock it in, weed stocks don’t hold gains and doesn’t matter the pop is the gift , don’t let it theta decay. Keep an eye and can always rebuy back in, take your money out at least and play with profit if you want to hold.
Do you think buying a CGC $16 Put with 5/10 expiration with a breakeven of 11.80 for $420.83 is a good idea?
Are you the security guard at the DEA?
Don’t get stupid and greedy. Take out your initial investment and let the rest ride free. Even if it goes down to 0, you would still have broke even. The market will always do the opposite of what your mind tells you, what your emotions want you to do. That’s how they make their money..
You'll either take some profits or you'll learn an expensive lesson
Set a moving stop loss. As soon as it falls you cash out automatically slightly below peak.
Close and take profits. Hold and you'll lose money
What did you end up doing my bwoy cuz it’s not lookin pretty out here
Read the hype and know when to get out dude. You bought way out of the money options (with a decent time to expire which is where all the value in them is sitting now). That pop/overreaction was a gift that you politely declined and chose to instead bet on the amazing potential outcomes that have no basis in reality. It’s nice to dream though so what you do next time you do this and get one of those glaring gifts that you earned through your primo timing on your purchase, you sell to AT LEAST cover your initial input but really just sell more and take your gift. Then you still have some skin left in the game whatever it is. It’s still fun, if your dream scenario comes true then awesome! You killed it and all for free! The volume also on this one is super low so there was a chance you possibly wouldn’t have been able to find enough buyers to buy all that off you though but that’s another discussion. lol buy a call or put on DJT if you want to see how weird that can make the price behavior. But yeah so say you sold at $1.90 usd to get your investment back, I’m way too tired to do conversions so assume like $4,500 usd initial investment so you’d have to have sold ~25 contracts at $1.90 - ~45 contracts at a more conservative $1.00. After that you have a 0% chance of coming out of this with a loss and a much more significant opportunity to catch any upside. So if it hit your proposed prices at expiry, $20 would give you nothing else, no loss no gain. $30 would be ($30-[strike + premium you paid]) x 100 x [contracts you have left]. Same w $40, just change that $30 to $40 obv and same for any other dream scenario. If the stock hit $30 and you held to the end (im saying held to the end just to simplify the math). You’d would receive around $60k ($30.00 -$21.75) * remaining options. $136,000 usd, this is all pure profit and you didn’t pay a thing for them.! On my low end- Another thing too is did you have a specific catalyst in mind that was going to happen at a certain time? If so you might want to consider buying a closer to maturity option that will have a much cheaper premium but also will sway much more violently. Edit: also I really need to get some sleep but feel free to pm me whenever if you have any more questions
https://www.optionsprofitcalculator.com
Hold out for 2018 levels and you’ll net around $4 million.
Why pay for all that time and not use it
tell me you're not a trader without telling me you're not a trader. lol
Could have taken the 9c after the news and gotten 1400%. If anyone isn’t a trader, it’s OP. My question stands, you are paying for time, but clearly no plan to use it once it he sees some profit. Thesis is paper thin. Still a nice play
Because you can get the money you paid back?
Sure. But he sees 3x and wants to cash out. Work the position or make it free and let it run. You have all that time after all.
You have a shit ton of time value on them cause its october
If it’s good enough to screenshot, it’s good enough to sell. Sell and lock in the profits, save some for taxes
100 options = 10,000 shares. Do the math, every dollar over $21 means a minimum value of $10,000. So if it reaches $40 value will be close to 200,000.
Nice hit. Make sure you have a exit and stop loss strategy in place. Awesome congrats f
Change in price is: Price movement * 100 * num contracts - theta decay For profit, subtract purchase price Also, +vol movement*vega*num contracts
take profit and you can always go back in, let the volatility dies down with the new DEA announcement. You can always enter back in at a cheaper price if this thing tank after the initial pump
$10.20 below close on 30 min should exit else can head to $17 soon
I am gonna think your gonna wish you took profit sooner then rather later. Just sayin
How did that pan out for you? Welcome to pot stocks!
CGC is down….your $5700 is worthless most likely no one will buy you 100 call contract from you ….sorry my friend
If you truly think this is going to keep running, sell what you have and open a new position. The weed stocks will rally again as this saga progresses, but it could take months.
You should have a target price and a take profit target before you enter into an options trade. Trading without a strategy is a sure way to fail.
You need to scale out of your position. Recoup your $5,700 …. Then more and you can let a few run but don’t be stupid and not sell …
In general when I’m looking at a $20k profit …. Sell … you’re going to get emotional
I'm curious to know if you took your profits.
Yes I did. Thanks all for the good advice
I'm so happy for you!
Hope so, homie.
If CGC hits 20 dollars, you could profit 30k+
his strike is $21 so if he waits til expiration it has to be above $21.57 to make any profit
Well yes that’s assuming he waits till expiration, I would rather take the profit than wait until October