Yup & given the fact that they bought (at that time) record size blocks. Noneless that position went from $16~ to $4 & Peter dirrectly made fun of himself with the saying (At that time in-dirrectly) ,,How much lower can it go ?" . Eventually thing went up back to $50.
%% NO wonder\most turn a round by 80% or sometimes 95%/LOL. His secret to success is he never went to business school/imagine all the lessons he never had to unlearn.-Peter Lynch ,One Up on Wall Street LOL/true.............................................................
Like butterflies minus one wing. Buy 1 call, sell 2 calls above if you believe it'll go up, but not extremely. Can make a bull spread cheap or a credit. Good payout if it lands close to the short strikes, and you have zero exposure beneath the long strike. You can do 1:3 instead if you want to move the short strikes out further, but it does amplify the number of short options you have. For GME, I sold a 1:3 Put Ratio Spread. 125P -3x80P for a 5.00 credit ending this Friday, basically hoping it wilts away. If it expires around 80, I'll collect another 45.00. Breakeven is around 55ish, and since that's where GME last consolidated I feel like I'd be okay wheeling it out. But if it skyrockets, I just keep the 5.00 from the beginning. Spread is worth around 10.00 right now, so as long as it stays in this range I'm gucci as the 80Ps dissolve and I essentially get a free 125P. For TSLA, I did a similar thing, although only 1:2. Opened 700P -2x 650P Mar19 for a 2.00 credit. Worth 50 at 650P. Breakeven at 600. Did get a little hairy last week, but now that it's hovering around the long option I feel more comfortable, as I expect TSLA to drift down a little more but not crazily. I am unsure whether I care to get assigned TSLA at 600 but it may be wheelable so long as it doesn't totally breakdown. Tricky thing is that if you're selling the theta, most don't reach their full value until the very last day. It's tempting to flip them and go net long, but if volatility isn't enough you could end up owing instead. For what some might consider an already inflated market, it might be good to buy a call and sell a few if you expect you'll make more off the long call than you'll lose off the short calls all while opening it up for very cheap with limited to no downside exposure. You could sell a Jan22 SPY 390 and buy 2 SPY 418s right now for about even; the margin impact at max loss is 28.00 (the difference). The upside B/E is 446. But again, all these only matter at expiration; before expiration it can be quite profitable for 0 out of pocket if it rockets in the short-term. However, this strategy ought to be weighed against just buying a call outright; after all, it may cost about the same in debit as it would margin.