Trader turns $500 into $300,000 over weekend

[flyny]

who even has $500 anymore

You must be from ohio

"****** aint gettin money in Akron?"

 

[Betonblck]

Yeah i'd think the opposite, i know it's a sure thing, i'm betting more than that.

Nah, it is almost like if you get the teachers guide you won't take the exam and get a 100%. Something like an 87% makes more sense not to be so hot

Exactly. You take that 87 and fly under the radar. Don't be the football player that missed all the classes and gets 100 on the test.

 

[johnnyredstorm]

I mean, yeah maybe he knew something, but it doesn't necessarily have to be the case. It's just a $500 bet, if the stock moved it's traditional ATR he would've doubled his money regardless. I'm gonna lean on being naive and saying he just got lucky.

If we had someone around here to give us advice maybe this could have been one of us. But no...............

If only there was a registered financial advisor on here who could help us

 

[Meangene45]

You must be from ohio

Exfoliate yo face.

 

[al audi]

dude just took a big dodo on all these cocky dudes on the grams who resell and show pics loading up their car with boxes on release days

some yall on this very site, they know who they are

 

[DCAllAfrican]

If only there was a registered financial advisor on here who could help us

You got the keys man.............help us out

 

[HEATHEN]

Word JRS, put NT on game.


Article probably about you.

 

[frankmatthews]

If only there was a registered financial advisor on here who could help us

You got the keys man.............help us out

I think he was alluding to the fact giving financial advice without accreditation is illegal. There is a stock market thread here if you just want to learn though.

 

[yeah]

dude just took a big dodo on all these cocky dudes on the grams who resell and show pics loading up their car with boxes on release days

some yall on this very site, they know who they are

This sounds like it might be a little personal, bro.

"oh look, someone made a crazy profit on a once in a lifetime options trade. This is a great time to talk about dudes flexing on the gram. Take that, resellers!"

That's a crazy flip. Probably a very uninteresting story at the end of it all.

 

[johnnyredstorm]

Word JRS, put NT on game.


Article probably about you.

I wish

 

[frank mucus]

Where's gold st. capital to make sense of all this

 

[HEATHEN]

This sounds like it might be a little personal, bro.

"oh look, someone made a crazy profit on a once in a lifetime options trade. This is a great time to talk about dudes flexing on the gram. Take that, resellers!"

 

[noskey]

Where's gold st. capital to make sense of all this

Busy counting his $300K come up

 

[Mark Antony]

Definitely Insider information. The trader only put $500 into it to make it seem like it was a lucky gamble.

What kind of logic is this?

Yeah i'd think the opposite, i know it's a sure thing, i'm betting more than that.

And then you'd end up in jail.

I can dig it, like he knew he'd win anyways with a small under the radar amount, just don't get greedy.

 

[Mark Antony]

If only there was a registered financial advisor on here who could help us

You got the keys man.............help us out

Dude knows a lot, he needs to put us on game. You might not be the best player, but you could be Luke Walton out here.

 

[OBAMA]

I still think gold st capital is legit fam

 

[diego]

who even has $500 anymore

You must be from ohio

Or Cali...

 

[Brownstone]

This sort of thing has more to do with luck than anything. Even when I make my small gains people ask why I didn't put them on. It's like, if I knew I'd tell you, but nobody does.

 

[johnnyredstorm]

If only there was a registered financial advisor on here who could help us

You got the keys man.............help us out

Dude knows a lot, he needs to put us on game. You might not be the best player, but you could be Luke Walton out here.

I'm def more Luke Walton than Steph Curry

 

[EddieDoyers]

Warren Buffet = MJ

 

[Betonblck]

This sort of thing has more to do with luck than anything. Even when I make my small gains people ask why I didn't put them on. It's like, if I knew I'd tell you, but nobody does.

But because the trader bought at a strike price of $60, it makes it obvious that it's insider information because a buyout for nearly double the market value is the only scenario in which a mature coffee company like Keurig is going to go from $51 to over $60 overnight. If the strike was at like $55, it wouldn't be obvious.


Because a buyout is the only scenario that the options don't expire worthless makes it obvious.

 

[johnnyredstorm]

Still though there's money to be made via the extrinsic value if the stock goes from 51 to 55 overnight. It only needs to be above 60 on expiration. $4 move overnight is gonna double the option, especially since it's so cheap. The issue lies within the liquidity and spread widening, making it otherwise difficult to exit at the desired profit in this instance because GMCR's options market isn't as heavily traded as Apple's.

 

[Betonblck]

Still though there's money to be made via the extrinsic value if the stock goes from 51 to 55 overnight. It only needs to be above 60 on expiration. $4 move overnight is gonna double the option, especially since it's so cheap. The issue lies within the liquidity and spread widening, making it otherwise difficult to exit at the desired profit in this instance because GMCR's options market isn't as heavily traded as Apple's.

Even at $55, the value of the option wouldn't move because it is so close to expiration.

 

[johnnyredstorm]

It'll move, weekly options are high gamma.

 

[tripleddd]

Even at $55, the value of the option wouldn't move because it is so close to expiration.

It will definitely move fam. Even if the underlying moved $1.50 he would still make money