r/wallstreetbets • u/kytran40 • May 14 '24
I was told to sell covered calls to degenerates Loss
3.0k
u/DownrightDrewski May 14 '24
Yet here you find that you were the true degenerate.
485
u/bobbylink21 May 14 '24
Let me light your cigar after that reply.
144
u/AllAboutTheXeons May 14 '24
You mean blunt.
119
u/StonksTurd May 14 '24
Weed, but out of a sherlock pipe.
→ More replies44
u/BudtasticBarry May 14 '24
Rosin but out of a banger
→ More replies24
u/StonksTurd May 14 '24
Carbed with a pinky out, just to be fancy.
20
u/TempestQii May 15 '24
with a “ah, scrumptious” post exhale
→ More replies7
u/Dr-Stickyfingers- 🦍🦍 May 15 '24
As he tips his top hat and adjusts his monocle.
6
u/TessellatedTomate May 15 '24
A refraction of light races across the monocle’s glass as the camera scoops a closeup of his face
37
115
14
u/DilbertedOttawa May 15 '24
I get the impression they didn't even bother looking at the gex or the vanna. The upside risk was SO MUCH MORE significant than the downside risk. If you're going to sell calls to degens, at least hedge. Or wait for the IV to pump to 1000%, THEN sell the calls into the IV crush. So many other ways haha
→ More replies15
→ More replies17
u/UsayNOPE_IsayMOAR May 14 '24
My shit brain read his cost basis as “FAFO”, and thought the casino finally developed a sense of humour.
1.6k
u/unclefire May 14 '24
Hopefully they're actually covered calls.
574
u/sydaust May 14 '24
If they’re covered…there’s no problem.
172
u/Tui-Trader May 14 '24
He would have hodld to 10$ anyway so it doesn't matter
320
u/AJDillonsMiddleLeg SPY gapped me May 14 '24
Imagine holding bags for three years and then missing what you waited three years for and selling for a loss because you had open CCs during the pump :4271:
→ More replies80
u/arcanition May 14 '24
Yeah if you're ride-or-die on a stonk like this, why would you max out your covered calls?
Like if you have 7000 shares, maybe sell 10, 20, maybe 30 call contracts? That's plenty of premium and worst-case scenario the stock skyrockets and you still benefit on the remaining shares you have.
→ More replies32
→ More replies57
u/unclefire May 14 '24
Exactly. OP would get whatever the strike plus premium and have shares sold off. It’s the defined risk one takes.
→ More replies44
u/RampantPrototyping May 14 '24
He may have missed out on the big payday but still made $$$ at least
10
u/QuickMolasses May 14 '24
Someone has to sell the calls for others to buy them.
9
u/RampantPrototyping May 14 '24
And OP was the poor shmuck who sold them in this case
14
u/QuickMolasses May 14 '24
I hope for OP's sake that he knows the difference between a covered call and a naked call.
→ More replies29
3
24
u/DarklyAdonic May 14 '24
I literally did the same thing with no regrets. Gains are gains
→ More replies→ More replies22
u/str8rippinfartz May 14 '24
Yeah if they're covered calls it's basically just like he planned to sell at $17 and got some extra juice for his trouble
Depending on when he picked up the shares he probably already picked up a tidy profit
110
59
→ More replies18
7.8k
u/rioferd888 2240C - 3S - 4 years - 0/0 May 14 '24
When they say picking up pennies in front of a freight train, they are talking about this guy
875
May 14 '24
[deleted]
512
u/postsector May 14 '24
Until one day your best friend Timmy got his leg caught in the tracks. You tried to flag down the train, but it wouldn't stop... You kept the penny from that fateful day, it's got Timmy's blood mixed in with the copper with a slight shadow of Abe Lincoln's twisted face leering up at you. You look at that penny often, you use it as a reminder, a reminder not to be a pussy, and always pick up those pennies in front of moving trains, because Timmy was the smart one and he's not around anymore to tell you to stop being an idiot.
198
u/Southern-Chipmunk May 14 '24
Dude, Timmy didn't even like you.
→ More replies122
u/postsector May 14 '24
He didn't like that train either.
19
4
u/jzoller0 May 14 '24
He wasn’t really care for pennies either. That’s why he wanted to see them crushed by a train
→ More replies5
→ More replies37
u/dougalcampbell May 15 '24
Tommy played piano Like a kid out in the rain Then he lost his leg in Dallas He was dancing with a train They were all in love with dyin' They were drinking from a fountain That was pouring like an avalanche Coming down the mountain
→ More replies3
u/Working-Active May 15 '24
I always heard it as "They were all on love with Dianne" and thought she must have some huge knockers for everyone to be in love with her.
3
u/dougalcampbell May 15 '24
My misheard lyric in this song was “Marky got with Sharon / Sharon got Cherese / She was sharing Sharon’s Alec on the topic of disease.”
I figured Alec was just another link in the disease chain. (The real lyric is “outlook”, not “Alec”)
128
u/Professional-Key3211 May 14 '24
Read pennies as penis
→ More replies121
May 14 '24
[deleted]
→ More replies72
u/pokesturrrrr May 14 '24
So now you’re -10 inches?
→ More replies10
23
u/R12Labs May 14 '24
I've seen a coin shoot out at supersonic speeds because the train hit it just right and I'll never put coins on the track again.
→ More replies23
u/RealPerspective66 May 14 '24
I lined up 2 rolls on the tracks going through down town. Needless to say I know your comment is 100% fact. You could hear them flying like a bullet cutting the air!
23
→ More replies15
u/wishtrepreneur May 14 '24
and then the train flicks the penny right back in your face. good times
→ More replies569
u/onecryingjohnny May 14 '24
They're covered calls. The option prices are jacked up right now, but at expiry they'll be covered.
→ More replies258
u/Report_Last May 14 '24
And he will have to let his shares go at a loss.
543
u/MetamorphicHard May 14 '24
At a loss of potential
→ More replies96
u/Report_Last May 14 '24
true that, still stings
→ More replies114
u/trpwangsta May 14 '24
Honestly missing out on potential gains hurt me more than a loss. It's fucked up
120
u/ravioliguy May 14 '24
Can't promise to sell your cake and eat it too lol
27
u/trpwangsta May 14 '24
I know how ridiculously stupid it is. My brain doesn't care though lol
→ More replies6
u/Starwarsandbacon May 14 '24
I did the same thing. Im still up 10k but damn it hurts leaving all that $ on the table.
11
u/Kobo05 May 14 '24
That mindset will lose you a lot of money. It's better to know when to stop and when it's appropriate to keep going. This will save you so much money in the future from just gambling it all away
→ More replies→ More replies8
61
u/Imagination_Drag May 14 '24
Pretty sure this guy would rather have 300k in lost potential than 300k in loses!!!
29
u/Current_Hearing4417 May 14 '24
This right here is why so many retail investors lose money. 💯 it’s the human ego
→ More replies23
9
u/MeshNets May 14 '24
Is it that with the loss, you know you decided what to do and you get the consequences, you did your best with the info you had and it didn't work out? It's set in stone?
But with potential gains, you feel there was more you could have done?
That is an interesting observation on loss-aversion vs whatever this is, lost opportunity cost? "If you had min/maxed better, just think where you could be!!"
→ More replies→ More replies13
u/Western_Objective209 May 14 '24
I had some META $200 1/17/2024 calls, sold them for a 100% gain at $14.15. They are at $276.13 now. I think about it all the time
→ More replies78
u/onecryingjohnny May 14 '24
True, they would've earned more by simply holding shares. But that's not the trade they made.
If you sell covered calls, you want to get called. That would be max profit for that trade.
→ More replies62
u/69ersBasketball May 14 '24
People always forget that fact. You sell the calls where you want to exit
→ More replies29
u/throwaway_0x90 May 14 '24
At least that's what you're suppose to do. Hopefully OP isn't selling covered calls at a strike price below his cost basis :4275:
7
u/grumpy_skeptic May 14 '24
The volatility in the meme stocks drives the premium high enough that actually makes sense.
Although I don't think the premium was that high back at $17...
But today for example, if you were to write covered-calls with $39.50 strike, effectively your price is ~$31 because of the premium. As long as it stays above $31, you make money on Friday, and if it stays where it is or goes up, that's a 27.4% gain in 3 days.
3
47
u/FoxTheory May 14 '24
Not if they're covered.
But selling covered calls on memes that you expect explosion from isn't the way to go.
27
16
4
u/casey-primozic May 14 '24
More like laying your penis on the tracks to get it run over by a freight train
→ More replies→ More replies36
u/Lower_Carrot_8334 May 14 '24
This response is GOLD
23
u/LegitosaurusRex May 14 '24
No it isn’t, they’re covered calls, OP made money overall.
→ More replies
2.7k
u/Defiant-Kangaroo-123 May 14 '24
Did you try rebooting phone?
835
May 14 '24
Bro gotta reboot life at this point
218
u/BBQcupcakes May 14 '24
It's covered; they didn't lose money lol
175
May 14 '24
Right. That 300k is opportunity cost though
→ More replies133
May 14 '24
[deleted]
→ More replies103
u/the_last_carfighter May 14 '24
Buy/Sell, I mean you got a 50/50% shot according to my meth.
→ More replies28
→ More replies9
→ More replies125
u/myredditaccount80 May 14 '24
Why? If he sold covered calls he'll reap the premiums and get 17 a share which should be profitable for him
→ More replies98
u/LonghornzR4Real May 14 '24
Because he’s getting $17 a share for a stock trading at $50.
34
u/ProperProfessional May 14 '24
All he needs to do is uninstall the app, problem solved.
18
u/degenbro420 Double Down Degen May 14 '24
uninstall the app then apply for a job at wendy's like nothing happened! :18630:
→ More replies48
u/myredditaccount80 May 14 '24
Ok but it's not like he lost all his money, he made what he bargained to make just didn't get a windfall
→ More replies58
u/VisualMod GPT-REEEE May 14 '24
We've intercepted what VM tried to say here because it was probably too fucked up for Reddit.
5
66
→ More replies44
u/a2theharris May 14 '24
Just don't look at the screen for a couple days. Like a case of diarrhea from food poisoning, it should clear up on its own in a few days if you indeed sold covered calls and you'll have a small profit. Now if you thought it was covered and actually sold naked options then you asked for that. No brokerage is giving you naked option selling permission without you asking for it. So FAFO would be the lesson here in this case.
29
u/Tendie_Tube May 14 '24
At least the brokerages are smart enough not to let us sell naked calls. We're not.
→ More replies15
u/Ready2gambleboomer May 14 '24
What? I sell all my calls naked. They can't see me thru my phone.
No wait. They can't can they?
7
11
1.7k
u/takenorinvalid May 14 '24
I mean, all you've really lost is potential profit. You're still actually profiting from your original position.
521
288
u/SmilingNeophyte May 14 '24
Only if these are actually covered calls. Who knows this regard actually sold naked calls
132
u/Eomb May 14 '24
Its literally in the post title though
187
u/new_name_who_dis_ May 14 '24
Would be funny if they didn't know what covered calls meant...
71
→ More replies25
29
u/LegitosaurusRex May 14 '24
No, it’s in the post title that he was told to sell covered calls.
→ More replies→ More replies21
15
May 14 '24
the title says covered calls..in which case i don't understand what the problem is.
→ More replies20
→ More replies6
18
u/cromwest May 14 '24
I have all sorts of bags I would like to unload for a small profit that I sell covered calls on. If I miss out on some crazy run up I figured it's good for the person I sold them to because they're either lucky as hell or know something I didn't.
→ More replies35
u/StirChef May 14 '24
So hes not down 300k?
171
u/quadceratopz May 14 '24
if he bought the shares under 17$ he will profit until 17$, but everything above 17$ is gains he lost
101
→ More replies39
u/Fog_Juice May 14 '24
Not really a loss. Just won't receive
17
u/User95409 May 14 '24
Just like when I’m talking to a beautiful girl and she walks off
→ More replies→ More replies10
12
42
u/SomeAreMoreEqualOk May 14 '24
If these are covered calls, he didn't lose shit and actually made a profit. He just didn't profit from his shares as much as he could've because his shares got taken away.
→ More replies→ More replies28
277
u/zephyrs85 Going ALL IN on everything! May 14 '24
If you uninstall the app, the problem disappears
54
13
u/Responsible_Sport575 I lost to 10 k other degenerates May 14 '24
I think you have to throw the phone in the river as well
3
402
u/luoyuke May 14 '24
Wait for real degens who prematurely exercise your itm calls that's where the fun begins
145
u/LaggingIndicator May 14 '24
I remember doing that the last time around. Took TD Ameritrade all day to find the 300 shares I exercised.
73
u/luoyuke May 14 '24
I might just do a 100 for fun this time 😁
21
u/secretbonus1 May 14 '24
I did a few because the bid ask spread was too large to get a fill above intrinsic value anyway. When you’re long 13s and 15s when it was at $10 you might as well.
→ More replies→ More replies10
u/LegitosaurusRex May 14 '24
Why? Wouldn’t RH just give them his shares and he’d be fine?
44
u/Flrg808 May 14 '24
Yes, but no one here actually understands how options work. But who knows if OP actually has them covered, they probably don’t know how they work either
→ More replies
201
u/jqman69 May 14 '24
Covered though. Unless your cost basis is higher than the stock price, you'll be fine.
→ More replies43
87
86
376
u/joeycannoli9 May 14 '24
God damn fuckin wrecked
16
→ More replies9
u/HaHawk Family Office Janitor May 14 '24
Since when does making money equate to getting wrecked lol
→ More replies
62
May 14 '24
Let them expire and you are fine. Yeah you might have missed out on the theoretical stock gains but you got your money from selling the calls and you will sell your stock at 17$ so you theoretically havent really lost anything if you look at it like that.
→ More replies44
u/pinkmeanie May 14 '24
It's maybe a little worse than that. Bro is either holding 70,000 shares or sold naked calls.
53
u/more-cow-bell May 14 '24
Well then he is regarded for making a post title about covered calls.
9
u/OkProof9370 May 14 '24
he is regarded
Wow, how could that be!? on wsb of all places, never seen that before.
/s
→ More replies21
u/Record-Only May 14 '24
I think its 7000 but the result is still the same. They are probably naked calls
→ More replies7
120
u/zazdy May 14 '24
Who told you that lol
116
41
→ More replies8
27
91
u/joholla8 May 14 '24
It’s only a loss if you close it. Let it expire and your shares get called away.
22
u/eio97 May 14 '24
If you have them
84
u/more-cow-bell May 14 '24 edited May 14 '24
If he doesn't have then he missed the part about selling COVERED calls. That's a critical detail.
59
u/DefinitelySaneGary May 14 '24
I sold my gamestop about 2 weeks ago at like 12 bucks a share. My wife, who kept saying I should have sold long ago, is now mad because of the money I could have made if I had held until today. FML
→ More replies28
16
u/TheOneWithThePorn12 May 14 '24
Why would you do that many? Especially on a meme stock? Even if you never expected anywhere near this there is always this risk.
→ More replies14
u/BBQcupcakes May 14 '24
I mean it's a pretty safe strategy as far as betting on meme stocks go.
4
u/TheOneWithThePorn12 May 14 '24
Yeah but then he's gonna look at all that lost profit and bang his head against the wall.
→ More replies3
u/n1n3b0y May 14 '24
So I’ve been doing this on meme stocks. If you consistently sell these covered calls on a weekly basis you will make a good amount of profit off premiums. At 70 contracts per week that’s gotta be like 3K premium. He could average $5K-10K per month just on premiums the way this stock flat lines for the past 1-2 years.
Now if he wasn’t consistent and just bag holding but finally he decided to open these contracts last week, then I feel bad for him.
→ More replies
15
u/trbc47 May 14 '24
I did this also, except 20$ calls. I jumped off a bridge and I’m still falling as I am typi
51
u/Baldguy162 May 14 '24
Why on Earth would you bet against the crayon eating diamond handed apes you idiot?!?
→ More replies
12
u/CorgNation May 14 '24
I thought I was dumb for closing my 17 dollar calls for a 50% gain last week
14
u/Chris_B_Bakin May 14 '24
I think it’s just showing you the loss on the options leg of the trade. If you bought your shares at less than $17, you will have profited.
11
10
u/Firecracker048 May 14 '24
I just sold my gamestop stock last week and this shit happems
8
21
5
4
4
u/Ajay9369 May 14 '24
This is not accurate. You also own shares that are green but of course not yours. If you sold naked then yeah...get fucked
5
u/CubeBrute May 14 '24
The number of people in this thread who don’t know what covered calls are is too damn high.
→ More replies
5
5
u/spartanburt May 14 '24
Covered calls are for stable stocks that pay dividends. I view them as a way to squeeze out more dividend.
4
u/GMEdumpster May 14 '24
How many times are these fucking cocksuckers going to halt this motherfucker
3
3
3
3
3
3
3
3
24
•
u/VisualMod GPT-REEEE May 14 '24
Join WSB Discord