This is a hilarious trade :)

02/24/2021 15:30:12 Bought 10 GME Mar 12 2021 43.0 Put @ 3.5 (GME was 63)

02/25/2021 15:46:32 Sold 10 GME Mar 12 2021 43.0 Put @ 4.85 (GME was 124)

 

This is what I don't get...You bought the right to buy 1000 shares by March 12th @43 per share, at cost 3.5 per option, when current shares were at 63...

So when the shares went way further than that today from the target strike, and hit 124 per share, why did the value of that put go UP, and you got out at 4.85?

 

Well, the right to sell, not to buy. As for why - because the volatility increase drove the option premiums to the moon See the "hilarious" in the title.

 

Indeed. So you spent $3500 yesterday, and today collected $4850, for a $1350 profit?

 

Yeah, right to sell. My bad.

 

Yes. Laughing all the way. It was a small trade, since GME is just too much of a tiger to ride, but it was fun.

 

That's why the trade was to sell puts when GME was at 500$ not to buy them

 

Another user rightly pointed out in another thread that today's best trade was to sell the 800 Calls expiring tomorrow that were priced at 3 dollars (his claim that they traded at 3 bucks at some point, I did not bother to verify that)

 

Another sign things are way out of whack making money stupidly.

terr - no offense meant about that or in particular your trading ability.

 

well. I didn't expect it to be this good, but I did think when buying that if the underlying shot to the moon the volatility would hold up put prices.

The puts would have lost me $ if it only went to like 80-90. And didn't take a trip to 184 in between.