IB banning opening new put option positions in GME

I am trying to open long puts, not short puts. So paid in full & risk is limited.

 

I am afraid you are right.

 

exactly who on earth is retarded enough to sell options on something this volatile?

 

Yep, risk is limited only to 100% of your investment, when Vega crushes you like a cockroach.

 

I deleted that comment because I think That might not be correct.

 

I mean if I buy puts on IB and if a MM is on the other side of the trade & wants to hedge that short put, he will need to short the stock. If there is not enough stock out there accessible by MMs to short, then hence why the ban on opening new long puts (That's my assumption).

Puts are only set for closing, which in reality helps the rally. Once people close out their put positions, MMs will essentially cover i.e. buy.

The guys at IB are fueling the rally further or helping it.

 

I don't understand your logic. Is it my money, your money or IB's money?

 

It is indeed correct. The stock is standing rock solid above $300 (Now at $345 with 40 mins to close). 29-Jan expiry (next Friday) has some 300k puts OI and 150k calls OI. The fact that all those puts are out there means that a lot of them are actually hedged with short stock or at best with other long puts in farther expires.

With such a trajectory in the last 2 weeks and the stock is not collapsing, it only means one thing, it probably isn't over yet.

 

@zghorner Check all weekly & monthly chains OI. Puts outnumber calls by 3-1 on average

 

It's those darn Greeks. They can often get very greedy just when you're not looking.