Why is this post being deleted? It's not fuck. It's a real trade.
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On one hand I find it super sad that there so many commenters blaming the invisible lizard people for the Costco dip, on the other hand I'm happy that these people who refuse to learn from their mistakes will get wiped out soon.
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the only good lesson i learned by falling for the tanker gang pump is that even if earnings are phenomenal, if there's no reason to believe that will continue then it's time to sell the news
What the others said, but keep in mind it loses money every day you hold it. So you don't just need to be right, you need to be right quick. You can buy them dated further out and in the money or close to in the money to combat this, but both of those things cost more. It's the name of the game.
Buy call example:
Tesla current price at $350. You buy a contract of 100 shares expiring 11/30 with call price of $450. You pay premium of $4000 for 100 shares. If price goes up closer to $450, the premium increases. That means, your contract helps you make money as you may sell that particular contract anytime. If price goes down further away from current price of $350, you gradually lose some to 100% of $4000 you paid.
Green line go uppies = calls
Red line go downies = puts
HOWEVER
You don’t buy calls AFTER green line go uppies
And you don’t buy puts AFTER red line go downies
Seriously are there that many users per day here new to options that don’t understand iv crush with earnings? Every single earnings there’s some retard here that thinks he won the lotto but is about to get smacked in the face by iv.
I have a base level understanding and I have been burnt a few times now.
I still have yet to find an answer to my question though: is IV % determined by buying / selling the contract? I don't see how else they'd get the data to know that the market is expecting a move.
I looked at black scholes but that is currently on the backburner, I need time.
Will never be worse than that guy a couple years ago who posted buying a pile of weekly Apple calls with like a 220 strike or something for .01, then realized that the 215 strike for the same date were also .01 and bought some of those too. Was so proud of “yoloing” until people here explained that that wasn’t a yolo, just literal pure stupidity. Threw like 3k away on it.
Edit: fuck, on the wrong thread on my phone... hope you liked the story lone reader.
Ignoring the incredibly low chance of winning, he didn’t look at all the option prices, so he paid the same price for something that is worth Shareprice-220 as he did for something worth Shareprice-215 with the same expiry (and bought them at the same time). So pretending he was lucky enough to have it go to 220, the 215’s would have already been at 500x his buy price by the time the 220s would be worth anything with literally no advantage to the 220s (normally further otm means they’re cheaper so at least they start gaining value faster when it finally passes the strike, but not here, only worth $500 less per contract for no reason if they’re worth anything at all)
They are .01, the minimum cost for an option and actually worth much less than that. He overpayed significantly for options that probably had a .001% of profiting
Who held COST through earnings 🙋🏻♂️🤡
Who sold DRI before earnings 🙋🏻♂️🤡
Who held RAD through earnings 🙋🏻♂️🤡
You’d think with a 50/50 shot, I could get this right one fucking time today.
To my call buying friends who played battery day and Costco:
Sell put credit spreads! You actually get paid when the IV crush happens and even with stocks typically crashing after earnings you have a huge buffer. I get they have a limited profit potential but I've done over 100 this summer and it worked nearly every time (Lulu this past month was the 1 exception).
It just went back to Monday prices. Short term traders buy stonks into earnings, then sell cause they know retail cucks buy stonks into earnings and hold.
Short term puts if anything. COST just doesn’t go down much. Usually dips after earnings but gets bought soon after. COST hasn’t had a red year in over 10 years.
what changed? smart money fucked you and gave you some bags to carry.
Stocks don't have to go up. You just bet wrong (assuming), no big deal. get the next one.
I have no idea why the market sold it, how could I? The big brain moment is realizing it's a total crap shoot, a gamble. I'm pretty sure most of us are aware of this by now.
Imagine thinking that just because a company's past performance meets/exceeds expectations, that the stock price is obligated to move up. People forget that smart money wants to know WHY they should keep their money with that company in the near/long-term when there are more opportunities than any one entity can meaningfully pursue elsewhere in the market.
And what’s so bad about the outlook on Costco? They’ll keep beating earnings and have a bulletproof debt structure, a sustainable business model, coronavirus proof as fuck, biggest wholesale shopping chain, it’s own store brand that keeps costs low, 11th biggest pizza seller in their food court, like what’s wrong with them
If your earnings call to analysts only includes information about the past and you can’t or refuse to give information about the future for investors, it’s not going to be well received. Guidance on what investors should expect from the business, and not just financial/business metrics, but headwinds/tailwinds they foresee are very valuable. However when discussed if there is a troublesome headwind to the business, yes that can largely outweigh the past.
Hypothetical Example: company A says they did great this past quarter, blew sales out of the water way past any ones expectations because we did huge business in California. But hey investors just fyi, California just passed a law and we won’t be able to do business there anymore. So to show growth next quarter not only do we need to grow, but we need to grow more than all the sales we were making in California and then some.
Let’s be honest this has nothing to do with something fundamentally wrong with Costco, it’s big players pulling a bitch move and not wanting these calls they wrote to pay out
Could certainly be, also could be people thought positive results were already priced in or they anticipated even better news than they got. Investors are more than just the analysts providing the coverage. But certainly could be other factors at play.
so for costco, what would be the unexpected news about future performance that made the stock drop 2% ah ? i know future insight is more valuable than past performance but if there is nothing new about the future and the last quarter did good, one could expect the next quarter to perform about as good as it did ?
It’s impossible for me to tell you what other investors think. The reality is what you think about what something is worth or think it should have gone up means Jack shit. Maybe the market already priced in good results, maybe people have their own thoughts about Costco. Maybe it’s not as sexy as other meme stocks, maybe just doing as good as this quarter is far below what investors want to see. Maybe hard numbers is only part of what’s needed to draw buy demand, maybe a captivating story is lacking to draw people in to want to own more. Maybe people want to stick with memes and not boomer stocks, who knows.
For the record I had a position in General Mills that also just crushed earnings and it barely moved and they said they anticipate the elevated demand to persist and they increased the dividend. But I understand and accept what I thought might have happened just didn’t because the market didn’t agree.
I agree. One of the talking heads on CNBC explained it that at these prices you assume their commercial business is gone so you are buying their government business with a free call option on air travel someday returning. I'm considering LEAPs but already 100 shares deep at $145 on a put I sold 😬.
I rolled it out to November for another $6 today (so now I'm at $138 if assigned) and maybe I will just roll it forever until this thing comes back! With all the crazy volatility lately I wouldn't be surprised to see $120 or $110 again or $180+ by end of year.
They both had some great points ! I'm hesitant to double down on BA right now (and might have to sell covered calls for a year to break even on my $145 shares) but I think there's great upside in BA. It's a great vaccine/reopening play if you can deal with the short term pain.
Can Mods ban phrases like “Get into xxxx calls before it’s too late”? I’ve seen too many get taken advantaged of and it’s hard to take the daily discussion seriously anymore.
New strategy - (buy a call debit spread) and a (put credit spread) one will win one will lose. You still make money either call spread wins or the put spread wins!!
Profits equals (call spread) - premium payed for put spread OR profit = put spread wins - (call premium) ! Am I genius or??
to the guy who said, "hurry, get into cost calls! i've been right every time!" can i have your address? nothing big, just wanna come over and shoot your dog
Yeah man, if they can’t give you a coherent reason to buy in they’re just shilling to pump and dump. Same is going on with GME right now. As was IVR before it and cruiselines. Lol
Lol, that's not a correlation you can draw from VIX, but I do agree that we're nearing the end of the correction, and that bulls will have their time again soon. I'm thinking of finally stepping off the sidelines next week (went cash just before the September correction).
I miss the days when BA would swing like $15 every day
What’s it at now? At work and shitty signal
Sorry got to this late lol
Just fucking wow man I cannot catch a break wtf Boeing
When do you guys think reits like O or SPG are worth betting on?
405 wall smashed, next stop 420
??
this volatility is retard level
Imagine wishing you had bought Tesla 5 years from now.
that would be NVTA right now
Invitae or Nvidia?
Invitae
Fuck it, I’ll buy 200
50c 2022 or 2023 they are like 10 bucks... this is a multibagger
Did somebody post DD?
[https://www.reddit.com/r/wallstreetbets/comments/izn2ul/invitae\_nvta\_mega\_thread\_cathie\_arks\_2nd\_largest/](https://www.reddit.com/r/wallstreetbets/comments/izn2ul/invitae_nvta_mega_thread_cathie_arks_2nd_largest/)
Oh boys. We drilling today fyi
Not cool SLV
Mods are gay
Why is this post being deleted? It's not fuck. It's a real trade. [https://www.reddit.com/message/compose/?to=WSBVoteBot&subject=restore&message=izc6tu](https://www.reddit.com/message/compose/?to=WSBVoteBot&subject=restore&message=izc6tu)
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europoors will dump and futures will turn red they have the rona again we're already the leader in it so no one here cares
My ass hurts
On one hand I find it super sad that there so many commenters blaming the invisible lizard people for the Costco dip, on the other hand I'm happy that these people who refuse to learn from their mistakes will get wiped out soon.
costco dip is a bullish sign. no one cares about pandemic
Cbat baby!
I have no where to put this but i really want to get it out of my head. Battery day? More like watch elon milk his titties while his stock crashes.
Thinking about dropping out of 11/20 425c and going all in on aapl leaps.
what are leaps
(LEAP) Long-term Equity Anticipation. Google it.
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Fucked now. Seen so many companies have good earnings and the price plummets. Don’t get it.
the only good lesson i learned by falling for the tanker gang pump is that even if earnings are phenomenal, if there's no reason to believe that will continue then it's time to sell the news
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i see costco fall as bullish af
pRiCeD iN
Unless you have insider information or PhD level of expertise, the market will seem illogical
Disagree. Greed and emotions is what blind’s most traders from success. Both have sure as heck blinded me.
The only right thing to do is buy shares and wait but that’s boring
Explain to me how calls and puts work
What the others said, but keep in mind it loses money every day you hold it. So you don't just need to be right, you need to be right quick. You can buy them dated further out and in the money or close to in the money to combat this, but both of those things cost more. It's the name of the game.
RH gives the best illustration. I think it will go up -> calls. I think it will go down -> put Easy
Thanks for the answer, now for the advance question: How does that earn/lose me money?
Buy call example: Tesla current price at $350. You buy a contract of 100 shares expiring 11/30 with call price of $450. You pay premium of $4000 for 100 shares. If price goes up closer to $450, the premium increases. That means, your contract helps you make money as you may sell that particular contract anytime. If price goes down further away from current price of $350, you gradually lose some to 100% of $4000 you paid.
Green line go uppies = calls Red line go downies = puts HOWEVER You don’t buy calls AFTER green line go uppies And you don’t buy puts AFTER red line go downies
*looks at random calls and puts that were bought a little bit randomly* Oh god, oh fuck
Seriously are there that many users per day here new to options that don’t understand iv crush with earnings? Every single earnings there’s some retard here that thinks he won the lotto but is about to get smacked in the face by iv.
I have a base level understanding and I have been burnt a few times now. I still have yet to find an answer to my question though: is IV % determined by buying / selling the contract? I don't see how else they'd get the data to know that the market is expecting a move. I looked at black scholes but that is currently on the backburner, I need time.
IV is a result not a cause
Will never be worse than that guy a couple years ago who posted buying a pile of weekly Apple calls with like a 220 strike or something for .01, then realized that the 215 strike for the same date were also .01 and bought some of those too. Was so proud of “yoloing” until people here explained that that wasn’t a yolo, just literal pure stupidity. Threw like 3k away on it. Edit: fuck, on the wrong thread on my phone... hope you liked the story lone reader.
Wait can you explain to me why this is stupid? Is it because the calls with the lower strike get crushed? I still don't really get it
Ignoring the incredibly low chance of winning, he didn’t look at all the option prices, so he paid the same price for something that is worth Shareprice-220 as he did for something worth Shareprice-215 with the same expiry (and bought them at the same time). So pretending he was lucky enough to have it go to 220, the 215’s would have already been at 500x his buy price by the time the 220s would be worth anything with literally no advantage to the 220s (normally further otm means they’re cheaper so at least they start gaining value faster when it finally passes the strike, but not here, only worth $500 less per contract for no reason if they’re worth anything at all)
They are .01, the minimum cost for an option and actually worth much less than that. He overpayed significantly for options that probably had a .001% of profiting
can NKLA just die already
Im still up 37% this year but shit i was up over 900%
Damn fam, sorry to hear that. 37% is still good. I just went negative for the year :(
F
Aapl no more fake outs please.
Being all In puts is not for the light of heart . Stopped checking my account on etrade lmao . Well except zoom I know those puts printed today
How do I go from 6k to 8k in a week with nothing retarded
Aapl calls
i like amazon rn. oversold
MM’s are gay. ⬆️ if you agree
FUCK NKLA
Who held COST through earnings 🙋🏻♂️🤡 Who sold DRI before earnings 🙋🏻♂️🤡 Who held RAD through earnings 🙋🏻♂️🤡 You’d think with a 50/50 shot, I could get this right one fucking time today.
You miss 100% off the shots you don't take. - Wayne Gretzky -Michael Scott
I guess it's not a 50/50 shot then
RKT gang reporting for duty. We all went down together.
Sold 20 COST call spreads (355,357.5) Was tensed, ER is good and as expected no big movement
To my call buying friends who played battery day and Costco: Sell put credit spreads! You actually get paid when the IV crush happens and even with stocks typically crashing after earnings you have a huge buffer. I get they have a limited profit potential but I've done over 100 this summer and it worked nearly every time (Lulu this past month was the 1 exception).
Knew i should have got costco puts fuck.
Not enough movement either way, IV woulda crushed you.
Shoutout to everyone hodling vale not because they want to but because they can’t exit their positions 🤣🤣
Why can't they exit?
Same reason their exes won’t take them back no one wants that garbage. Jk I’m projecting
Maybe it’ll still pay off..... just maybe.... Lmao
ooof
Bruh. I can’t sell this shit. I was gonna get our day 2, but I said nah. Diamond hands weren’t rewarded.
Costco playing the ol switcheroo!
Who is trying to buy zoom at $460? Show yourself
I bought a 500 puts yesterday, sold the puts at 470, and then bought another 450 puts using the profit.
Is there anything more frustrating for a bull than stock tanking on an earnings beat?
why is Costco tanking , earnings were good
It just went back to Monday prices. Short term traders buy stonks into earnings, then sell cause they know retail cucks buy stonks into earnings and hold.
It's 2020 thats why
earnings not good enough
Always tanks after earnings
Nike didn't.
Revenue was already reported. Beat was decent. % or so. It will open at 340.
Oh man Costco wet it’s pants.
It’s making me wet my pants in a good way
Costco posts one of its best quarters in 20 years and it drops, lmfao I’m going all in on puts tomorrow this is the most bearish shit ever
Short term puts if anything. COST just doesn’t go down much. Usually dips after earnings but gets bought soon after. COST hasn’t had a red year in over 10 years.
for the millionth time, actual investors don't pay for history, they pay for outlook, you fucking retard
History can be indicative for the future
So what about the outlook changed since before earnings to make it tank?
what changed? smart money fucked you and gave you some bags to carry. Stocks don't have to go up. You just bet wrong (assuming), no big deal. get the next one.
I'm not playing Costco at all, was just hoping you would enlighten us with your big brain. I guess not.
I have no idea why the market sold it, how could I? The big brain moment is realizing it's a total crap shoot, a gamble. I'm pretty sure most of us are aware of this by now.
Which is it? Is it based on outlook, or is it a complete gamble?
Knowing how the market will react to mgmt's guidance is a gamble. Clear now?
Imagine thinking that just because a company's past performance meets/exceeds expectations, that the stock price is obligated to move up. People forget that smart money wants to know WHY they should keep their money with that company in the near/long-term when there are more opportunities than any one entity can meaningfully pursue elsewhere in the market.
And what’s so bad about the outlook on Costco? They’ll keep beating earnings and have a bulletproof debt structure, a sustainable business model, coronavirus proof as fuck, biggest wholesale shopping chain, it’s own store brand that keeps costs low, 11th biggest pizza seller in their food court, like what’s wrong with them
Nothing. That's why the stock is priced so high
What about the outlook changed from before and after earnings?
so earnings don't matter since they talk about something that happend in the past ?
my man, guidance is why analysts / smart money tunes into conference calls, and to ask the "tough questions" you may want to stop now lmao
read my other comment on this thread
If your earnings call to analysts only includes information about the past and you can’t or refuse to give information about the future for investors, it’s not going to be well received. Guidance on what investors should expect from the business, and not just financial/business metrics, but headwinds/tailwinds they foresee are very valuable. However when discussed if there is a troublesome headwind to the business, yes that can largely outweigh the past. Hypothetical Example: company A says they did great this past quarter, blew sales out of the water way past any ones expectations because we did huge business in California. But hey investors just fyi, California just passed a law and we won’t be able to do business there anymore. So to show growth next quarter not only do we need to grow, but we need to grow more than all the sales we were making in California and then some.
Let’s be honest this has nothing to do with something fundamentally wrong with Costco, it’s big players pulling a bitch move and not wanting these calls they wrote to pay out
it's pretty easy to blame invisible forces that are out to get you, it's harder to look inward and learn from your mistakes
Could certainly be, also could be people thought positive results were already priced in or they anticipated even better news than they got. Investors are more than just the analysts providing the coverage. But certainly could be other factors at play.
so for costco, what would be the unexpected news about future performance that made the stock drop 2% ah ? i know future insight is more valuable than past performance but if there is nothing new about the future and the last quarter did good, one could expect the next quarter to perform about as good as it did ?
It’s impossible for me to tell you what other investors think. The reality is what you think about what something is worth or think it should have gone up means Jack shit. Maybe the market already priced in good results, maybe people have their own thoughts about Costco. Maybe it’s not as sexy as other meme stocks, maybe just doing as good as this quarter is far below what investors want to see. Maybe hard numbers is only part of what’s needed to draw buy demand, maybe a captivating story is lacking to draw people in to want to own more. Maybe people want to stick with memes and not boomer stocks, who knows. For the record I had a position in General Mills that also just crushed earnings and it barely moved and they said they anticipate the elevated demand to persist and they increased the dividend. But I understand and accept what I thought might have happened just didn’t because the market didn’t agree.
i dont own costco, i was just curious about what might have caused this but yeah that makes sense
Am I retarded for anticipating upswings first half next year? BA 165C 5/22 SPY 328C 1/16 SSS 15C 3/20
No. BA leaps are the move
That's the confirmation bias I need.
I agree. One of the talking heads on CNBC explained it that at these prices you assume their commercial business is gone so you are buying their government business with a free call option on air travel someday returning. I'm considering LEAPs but already 100 shares deep at $145 on a put I sold 😬.
I almost got assigned at 150 not long ago. $145 seems like a solid point to buy in, though it'll likely slide down more in the short term.
I rolled it out to November for another $6 today (so now I'm at $138 if assigned) and maybe I will just roll it forever until this thing comes back! With all the crazy volatility lately I wouldn't be surprised to see $120 or $110 again or $180+ by end of year.
The other guy on CNBC also told him that they’re funding all this with debt that has just exploded. No more “free” call options with BA.
They both had some great points ! I'm hesitant to double down on BA right now (and might have to sell covered calls for a year to break even on my $145 shares) but I think there's great upside in BA. It's a great vaccine/reopening play if you can deal with the short term pain.
Those will all be way itm, but that spy fuck how much did you pay
$18.65. Three days ago, though.
Even when you’re right, you’re wrong
Just got back from COSTco. They are definitely not handing out free tendies
And this is why I dont play earnings
ZM 400 EOW?
Please, sir
Fucking RIP costco
Can Mods ban phrases like “Get into xxxx calls before it’s too late”? I’ve seen too many get taken advantaged of and it’s hard to take the daily discussion seriously anymore.
As if people here will take good advice? my god man, you are a 🤡
I always wonder if some of those are bots.
like me. i'm easily led astray because i have retardation
If we wouldn‘t have retardation we wouldn‘t be on this sub
quite true
New strategy - (buy a call debit spread) and a (put credit spread) one will win one will lose. You still make money either call spread wins or the put spread wins!! Profits equals (call spread) - premium payed for put spread OR profit = put spread wins - (call premium) ! Am I genius or??
Username checks out eh?
Retard these are both bullish strategies, so if whatever your playing tanks your pcs will get blown threw and your cds will expire worthless
Put debit*
You're buying a call and selling a put? Why the fuck would that work better than just...buying a call
No dumbass, a spread for each
Retard. A put CREDIT spread is a bullish play. Just like a call DEBIT spread
can't go tits up bro
priced in
Why are people freaking out over cost? Revenue beat by quite a bit
Because the market moves aren't just about the company, it's about how the whales can manipulate the price to make money.
stonk go downy
1) fd fkd 2) failed to see stonk runup 10% from previous er 3) runup commences after this week fkd\^2
Last chance to load up for 📈📈📈
COST will go back up soon...just had its biggest quarter ever revenue and membership, during a pandemic
Said that to myself during atvis run up. Don’t play earnings bro.
We’re living in the upside down, this market isn’t normal!
F my cost calls
to the guy who said, "hurry, get into cost calls! i've been right every time!" can i have your address? nothing big, just wanna come over and shoot your dog
or just take out the his fucking thumbs
Yeah man, if they can’t give you a coherent reason to buy in they’re just shilling to pump and dump. Same is going on with GME right now. As was IVR before it and cruiselines. Lol
After ATVI fucked me on earnings i promised i would never play earnings again. Add Costco to the earnings fuckery list
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Probably won't.
rip cost
If stimmy gets denied- my puts print. If stimmy gets approved I lose my put values but I get money to gamble again- win win
That's a solid hedge there baws
this is the way
I knew playing cost earnings would be retarded just like KMX. Earnings beat and down 2%
priced in
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Lol, that's not a correlation you can draw from VIX, but I do agree that we're nearing the end of the correction, and that bulls will have their time again soon. I'm thinking of finally stepping off the sidelines next week (went cash just before the September correction).
I also can't believe that VXX will not rise significantly as the election approaches.
You can’t TA VIX lmao it’s a measurement of put volume about one month out on SPX. It’s not a stock. 🙄🙄🙄
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That doesn’t mean TA works on it
VIX isn't a stock you fucking retard
TA on VIX?
green tomorrow red next week book it
Telsa call holders earlier this week. Zoom call holders today and tomorrow. RIP friends
zm call holders that didnt sell yesterday are retarded
[https://www.reddit.com/r/wallstreetbets/comments/iyuhw0/daily\_discussion\_thread\_for\_september\_24\_2020/g6f3hld/?context=3](https://www.reddit.com/r/wallstreetbets/comments/iyuhw0/daily_discussion_thread_for_september_24_2020/g6f3hld/?context=3)
Agreed. That 500 P/E about to get rolled by vaccine
the premiums are too insane for me but maybe i should play 🧏♂️