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Sanrith Descartes

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This is common. The bid and ask on options are usually just the market maker and it will sit a little wider than it could be if there is someone wanting an active trade. It's the default idle state. It's why you can see 200 on the bid at 0.30 then it drops all the way to 0.20 and not a single option trades. There was no buyer sitting at 0.30 just waiting to get some it was just the market maker having them available so if someone did want to buy or sell. The moment we put our trades in the computers wake up, they become more interested now they know a fish is nibbling. You can sometimes improve a trade a few cents by playing games with them, I believe I described this before. Several times just keep changing your bid or your ask . Push it till you see you are on the only bid. Then move it back then in again and you can sometimes get the market maker to take your trade at a better price for you.

It just important to remember that the bid and ask sizes and prices you are seeing are not real in the sense you might think they are. There is no sanrith out there sitting at that bid. If you watch all day you can see when the actual trades come along and how the behavior changes. When it's just you it's easiest to see how things are adjusting.
I got most of that. The real question is then order placement. Do i getting relegated to that back of that line in terms of filling the order?
 

Blazin

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I got most of that. The real question is then order placement. Do i getting relegated to that back of that line in terms of filling the order?
Trades are not really queue'd like that, I can't speak from to the actual technicals of how the primary exchange picks from all available when all other things are equal. But just keep in mind it's going to be rare that there is any other trader than you when you are just trading some random option on a stock. Sure if it's a memestock crazy day or maybe major index options then there are more active participants. You are trading with the market maker the majority of the time.
 
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Fogel

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Someone just wrote a ton of MSFT 260$ puts 6/17/22 exp

1626460303161.png
 
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Sanrith Descartes

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Yeah, too big a chunk a change for anything but a huge fund or whale who wants a hedge on their massive MSFT position I'd guess
I know its a 2022 option, but earnings season is here. Does anyone actually think Big Tech isnt going to crush earnings?
 

Sanrith Descartes

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Sold some DAL puts expiring in Aug. $32 strike and 32 cent premium.

edit: Fuckers are printing money.
 
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Sanrith Descartes

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I have been stalking DNUT since the IPO. IPO was way over-priced and the financials don't support that valuation. $14 share price gives it a valuation of just around $2b which I think is reasonable. I am trying to write the $15 Aug puts for $1.00 and have come close a few times but havent hit yet.
 

Fogel

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I have been stalking DNUT since the IPO. IPO was way over-priced and the financials don't support that valuation. $14 share price gives it a valuation of just around $2b which I think is reasonable. I am trying to write the $15 Aug puts for $1.00 and have come close a few times but havent hit yet.

For how new it is I feel way more comfortable writing BCRX puts for the same/more amount of premium
 

Sanrith Descartes

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For how new it is I feel way more comfortable writing BCRX puts for the same/more amount of premium
DNUT did over a billion in sales last year even with the lockdowns. BCRX did 17 million in sales and it was the lowest sales in the last 5 years. I am ok owning DNUT at a $14 cost basis if exercised.
 

Fogel

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DNUT did over a billion in sales last year even with the lockdowns. BCRX did 17 million in sales and it was the lowest sales in the last 5 years. I am ok owning DNUT at a $14 cost basis if exercised.

But DNUT only has 20% profit margin, BCRX is 90%. And sales will be back up this year because they already got through their FDA approval, so it has a lot more growth potential than DNUT
 

Sanrith Descartes

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Wrote the $6 strike Aug puts on DIDI for 40 cents. Now this is straight up gambling.

Diamond handed the shit out of those puts this morning. Got a little dicey when the price was threatening to punch below $7.
 
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Sanrith Descartes

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Wrote the $6 strike Aug puts on DIDI for 40 cents. Now this is straight up gambling.

Diamond handed the shit out of those puts this morning. Got a little dicey when the price was threatening to punch below $7.
Bailed out of DIDI with about a 10 cent loss. Gave it a shot.
 

Fogel

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Sold more BCRX puts 8/20 16 strike 0.95 premium

Bought PINS calls 11/19 70 strike 3.75 premium
 
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Fogel

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Thats why I went with November to give it a month or two to play out.
 
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Fogel

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Another week, another 1% gain on weekly FUBO covered calls
 
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Sanrith Descartes

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Wrote the Aug puts for DNUT. $15 strike for 80 cents. I had fair market value on the IPO at $14, so if I get exercised with a $14.25 cost basis I am good with it.
 
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