It went up bc more buyers than sellers. Who cares why, beyond that.... we're traders. I suppose it's fun to guess at reasons beyond that, but like GME TSLA etc, meme wsb stocks are momentum plays. What I think about is how to trade without getting shaken out, should I scalp on open vs all day long trade etc
For this type of quick momentum volatile play, is it more beneficial to play the stock itself or OTM calls? I find in terms of risk reward they are the same. Sure OTM is more rewarding but also more risk An advantage too I find of buying the stock is you can get out during PM and AH in case it pops
Yes true no one cares me neither, but I messed up going long GME instead of AMC so I wanted to know if I missed something. But looking at it AMC had more Rel Vol, thought maybe if there is something else I should know about
The risk isn't the same. If you buy the stock and they don't pile in, your position might decline more than what you paid for in call premium. You'd be hoping the stock goes up a ton. Had you leveraged up in low-price calls, you'd make a ton.
So You mean I could just put a small amount in a OTM call and if I win, I win big but if I lose I lose small}
Does knowing the unknowable make it anymore likely someone will catch the next one? The herd did not know otherwise it wouldn't happened. The few who did "know" didn't really. They just got the benefit. I'm referring to pre-breakout levels. Once that move started breakout traders were a happy bunch. So just follow the WSB stocks and watch for the breaks.
Something like that. You could have a much larger profit potential with buying more OTM calls. The farther they are out of the money, the cheaper they are. Of course the stock would have to make a bigger move to go ITM.... but that's the game you play when buying options... you're always hoping for or protecting against a big move. If the play doesn't work out, all you've lost is the option premium. Selling options... that's a different kettle of fish.