Redditor yoloing on AAPL

Discussion in 'Options' started by Pekelo, Jan 27, 2017.

  1. Pekelo

    Pekelo

    systematictrader likes this.
  2. dealmaker

    dealmaker

    Last edited: Jan 27, 2017
  3. Pekelo

    Pekelo

    Well, the story might not be real, but the trade is interesting. Here is the possible P/L curve:

    https://explainoptions.com/?d=long%20150%20120%20put%20at%201.8094%0Along%20350%20115%20put%20at%201.743%0Along%20700%20110%20put%20at%200.1977%0Along%201500%20105%20put%20at%200.08%0Along%203000%20100%20put%20at%200.04292%0Ashort%20300%20120%20call%20at%203.5%0Along%20300%20128%20call%20at%200.455%0A


    "If AAPL is at $128, all of his put options would be worthless, and he'd have to pay out on his 300 call contracts. If it's at $128 he owes $800 on each contract (128-120)x100. $240,000 then? (800x300). That's actually how much he'll lose if it goes above $128 too since then he can exercise his $128 calls to cover any additional losses.
    This can be scaled as well. So if it goes to $127 he loses 700x300 = $210,000. Basically every dollar Apple goes above $120 costs him $30,000, up to $240,000."
     
  4. Wow - quite the read - pretty long but the misery keeps one going.
    I hope he kills it on the trade.
    Having said that he seems like a hard core gambler - why else would you put the trade on that long before the actual earnings (with a weekend in between) and not just the day before.
    roulette's rien ne va plus ball is going to spin for the next four days
     
  5. vanzandt

    vanzandt

    Apple will stay flat around $120 with no big move.
     
  6. Pekelo

    Pekelo

    Maybe he is expecting the IV to increase....
     
  7. vanzandt

    vanzandt

    If he did, he was wrong.
     
  8. All those reddit traders are losers -- they remind me of the movie Boiler Room ...a bunch of young naive/dumb cowboy traders.o_O:confused: ...hungry and hoping for the next big score to brag about at any cost.
     
  9. contra

    contra

    Skimed the canuck's BS story, but basically he is all in, and needs/expects AAPL to drop to 105 by Feb 17th, and if he gets it, he will send everyone on that WSB subreddit free maple syrup?

    His reasoning is AAPL always drops after earnings, and this time a sick drop is coming... because there is no headphone jack on the iphone7.
     
  10. vanzandt

    vanzandt

    It sounds to me as if it doesn't drop as he planned.... he'll be doing an encore to Robin Williams' final show.
    I really think its going to trade flat this time. He's done.
    Sad, stupid. His uncle would not be happy.
     
    #10     Jan 28, 2017