No I don’t but that’s just my view and I don’t really have anything to back up my thought other than today has been flat all the way
Right I’m off for my curry and a few beers. Have a great weekend folks.
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What time is the power he GMT pls? Also I guess it’s the final he if day trading but why does that make a difference?
Should have said hr sorry - damn auto correct!
8pm mate
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Weekly options (calls and puts) expire on Fridays
Have a hot one!
Sj
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That’s a smart way of playing. I might steal it.
Sj
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is that why there isnt much movement and the heges are just trying to cover themselves? or getting them to expire to stop their losses?
I’m not sure tbh. What I do know is that an extra 20% of calls expire ITM if it stays above $50
114,040
Calls ITM expiring
Jun 4
@ $50
+23,610
Calls ITM
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Is that good or bad?
The more calls that expire In The Money the more shares need to be bought to cover them next week. Buying pressure ups the price so you can get kind of a snowball effect when enough expire ITM. Each of those 114,040 Calls equates to 100 shares so that’s 11.4 mil shares need to be bought to cover next week and 2.3 mil more if it’s above $50 end of day.
Good if it gets there.
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They only need to buy to cover if the don’t already have the shares. selling covered calls on shares you already own is a legit way of earning an income on stocks that don’t pay a dividend
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So wait: Let’s say I have 100 shares of AMC bought at $45. I buy 1 call (so for 100 stocks) at $50 which expires today. How much do those options cost? And what do I win if the proce is higher than 50?
Thank you, and everyone else who does, for taking the time to explain how this works to us newbies. I randomly bought some AMC, Nokia and BB in February with the rest of apes, and I’ve really got something out of being part of this forum. I’ve moved some of my capital around since then, at a tiny profit, but whacked it all back to AMC (and a fiver to Nokia) when this spike started. I’ve had more than my monies worth in entertainment if nothing more.
Sj
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where could i find this information?
There’s way too much to options trading to cover in a post. You’ll have to go and research that I’m afraid.
If you own the shares you would sell the call, this gives someone the option to buy them off you if the price has gone up. so basically if they don’t go up your profit is the price of the call. if they do go up you have to sell, but you would still make the difference between your buy price and the sale price
sorry i meant the call options of amc?