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Selling naked call options on a meme stock no less(assuming he sold them after the Reddit hype train started). Also selling 200k worth meant he would have made it out like a bandit if the bet succeeded. I wonder what his net worth is if the broker allowed him to be leveraged so much?
there is max fixed gain when selling a call, right ?
Earlier quoted context omitted.
Selling naked call options on a meme stock no less(assuming he sold them after the Reddit hype train started). Also selling 200k worth meant he would have made it out like a bandit if the bet succeeded. I wonder what his net worth is if the broker allowed him to be leveraged so much?
there is max fixed gain when selling a call, right ?
That's when you sell a naked call. If you instead sell a covered call, you keep 100 * the number of calls sold in your account as collateral. Then you still only receive an exact credit at the time the position opens, but your risk is capped and defined as the price of the collateral at the time the position opened.
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A lot of people who think that buying puts is ,,too expensive''. Nassim Taleb made money by understanding that out of money call options were underpriced, not overpriced how people think generally. People don't learn from the past.
Taleb made money in 2008 by buying options that were way out of the money and hoping for a crash. All other years, his fund lost money. That strategy would have lost money over the last decade, because there wasn't a crash. Whether that strategy is a net win over a business cycle isn't known. Taleb's funds never published their full results.
End result, even harder to win with OOTM options even if you are correct.
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Indeed, there's no meat to the suit detailed. Still, though. The fact that DeepFuckingValue just turns out to have been a licensed broker complicates the narrative quite a bit. Needless to say he can be expected to have known that the whole short trading theory of "Hold the Line" was bunk, and did nothing to disabuse the community of it. I say it every time this comes up: this guy's criminal exposure is really signif…
Is the assertion that DFV, by being a licensed broker, is obligated to speak on a web forum to correct misinformation that they see there?
Yet he was silent as his investment conveniently went through the roof, driven by a huge misunderstanding propagated within the very community where he did almost all his profuse speaking.
And that doesn't seem suspicious to you? Look, I'm not the SEC. I can't subpoena his trade history or social media logs. But there is an SEC, and they can, and we have to believe they're looking into this.
Basically: sure, he might be totally innocent and just a lucky beneficiary of a crazy bubble. I'm just saying it's more likely that he was executing a pump and dump.
"The would-be plaintiff representing investors in the case, Christian Iovin of Washington state, sold $200,000 worth of call options on GameStop shares when the stock was below $100. The stock quickly eclipsed $400 a share, forcing him to buy the calls back at elevated prices." He's being sued by someone who sold naked call options and got burned. This case is going nowhere. I'd love to start suing people for every t…
Indeed, there's no meat to the suit detailed. Still, though. The fact that DeepFuckingValue just turns out to have been a licensed broker complicates the narrative quite a bit. Needless to say he can be expected to have known that the whole short trading theory of "Hold the Line" was bunk, and did nothing to disabuse the community of it. I say it every time this comes up: this guy's criminal exposure is really signif…
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DFV never said a thing about short squeezing. Watch his content, don't trust the media. He bought the stock as a long term investment because he thought it's severely undervalued and it will rise with new leadership.
> DFV never said a think about short squeezing. But did Keith Gill? All the argument here tends to treat "/u/DeepFuckingValue" as the sole authority of what this guy did, and in context that seems outrageously naive. Accounts all over WSB were pushing this stock like crazy, and this guys Just So Happens to have been a huge beneficiary, when he was absolutely expert enough to have understood the bubble (and importantl…
You could make this argument about literally anyone on Youtube or TV talking about stocks. Don't, please.
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DFV never said a thing about short squeezing. Watch his content, don't trust the media. He bought the stock as a long term investment because he thought it's severely undervalued and it will rise with new leadership.
> DFV never said a think about short squeezing. But did Keith Gill? All the argument here tends to treat "/u/DeepFuckingValue" as the sole authority of what this guy did, and in context that seems outrageously naive. Accounts all over WSB were pushing this stock like crazy, and this guys Just So Happens to have been a huge beneficiary, when he was absolutely expert enough to have understood the bubble (and importantl…
Earlier quoted context omitted.
Selling naked call options on a meme stock no less(assuming he sold them after the Reddit hype train started). Also selling 200k worth meant he would have made it out like a bandit if the bet succeeded. I wonder what his net worth is if the broker allowed him to be leveraged so much?
there is max fixed gain when selling a call, right ?
Earlier quoted context omitted.
> “Gill’s deceitful and manipulative conduct not only violated numerous industry regulations and rules, but also various securities laws by undermining the integrity of the market for GameStop shares,” the suit said. “He caused enormous losses not only to those who bought option contracts, but also to those who fell for Gill’s act and bought GameStop stock during the market frenzy at greatly inflated prices.” As a re…
I have seen a lot of protests defending Gill. I think there is another side to the story though with many people who lost money buying the stock (selling options is different) based on his advice. Gill is held to a much higher standard than a normal person as he is a licensed security broker. If you look at my comment history on HN, you will see at the time I was pointing out a lot of Redditors were engaging in a pum…