Also, in addition to my other reply Buying put contracts in an upward trending overexuberant market is overly risky, I was being a troll when making that comment, I was basically saying I'd bet on the downside when his position was to go long and hold the stock.
In reality I would not care as an options trader, whether its fundamentals are sound, because playing options contracts is day trading, not investing. It is a full time job and when I used to do it I would often trade the same stock or ETFs on both sides in the same day buy my calls at opening bell, sell them at the turn then buy puts, ride that down to the turn, sell and by calls to ride it back up.
But if I had large position in the stock itself I would not want to sell but I'd be watching close and getting nervous, however indicators show an arguably moderate upward trend.
From what Blurpy was saying, when I asked if I should buy in the money call contracts and buy some popcorn to watch the show (which he said no to), Had I bought 6k in calls and held for 2 days (which I would never do, it would violate my own rules of trading) I would have made 19k and then playing puts today added another 2400 on the downside.
The puts comment was just trolling because he said to not by on the upside in contracts because of share dissolution, so I trolled him saying his stock was going to crash, in reality it is "in play" and will continue to ridiculous things until a major market move like dow down 1000 and Nasdaq down 350 that is the day GME holder will wish they took their profits.
Thanks. So your own rules preclude smash and grabs? would three days suffice? Do you have a lot of rules? Just curious as I am a noob and you sound knowledgable.
I just thought I'd revisit how correct I was, now that we've had a couple days were Dow was down 1000 with huge Nasdaq losses.
I said, long investors should be getting nervous and getting ready to take their profits (sell their positions). In the same week as our conversation GME peaked at around 222, up from 200 when this thread began. Since its height at around 222 it has dipped back down below 200, up to 206 and then crashed to 175.
These long investors holding their positions on faith and gut feeling got royally screwed if they did not sell at the top, which exemplifies why I say, do not greedy, take your wins and move on.
No, smash and grab is all you do you and watch your contracts in real time.
Never stay in a contract over-night, regardless of how sure you are that it is going your way. Like, this week if you bought 6k of 4 tier up "in the money calls" you would have made a fortune but come close of day Monday the wise man would sell the contracts and take their gains. But the fool wakes up and sees the stock gapped 6 dollars higher after close of market. He sees all the money he could have made if he just stayed in overnight, so he discards that rule and starts staying in his contracts over night. He looses 9 times out of 10 but his once in 10 wins keeps him pissing his profits away.
Trading options contracts should be like sticking a tin cup in a waterfall, put it in and pull out quick, you have a full cup of water, who cares if a thousand gallons rush by , you got what you need.
Don't get greedy just snipe steady gains and get out before the time value gets sucked out from under you
Yes, I think GME is overvalued. Its health rating is strong but its earnings and long term earnings make it overvalued by its P/E ratio. Then, it's assets to profit ratio are -1.88 vs + 11.8-12 industry standard. So they are actually bleeding profits at a slow pace.
I think it is overvalued but that is going by real world fundamentals. But I have seen overexuberant optimism win over fundaments again and again.
It could break out on Monday with a crazy unnatural bullish push upward for all I know. But I see a company slowly bleeding money which just fired its COO and is not refilling the position. Investors like fat trimming so it jumps up a bit but the reasons they are trimming fat should make long investors nervous.
Dumb dumb here with a dumb question.
You mean you would buy the OTM Puts? Because you think the share price is overvalued? Just trying to learn. Thanks.
Also, in addition to my other reply Buying put contracts in an upward trending overexuberant market is overly risky, I was being a troll when making that comment, I was basically saying I'd bet on the downside when his position was to go long and hold the stock.
In reality I would not care as an options trader, whether its fundamentals are sound, because playing options contracts is day trading, not investing. It is a full time job and when I used to do it I would often trade the same stock or ETFs on both sides in the same day buy my calls at opening bell, sell them at the turn then buy puts, ride that down to the turn, sell and by calls to ride it back up.
But if I had large position in the stock itself I would not want to sell but I'd be watching close and getting nervous, however indicators show an arguably moderate upward trend.
From what Blurpy was saying, when I asked if I should buy in the money call contracts and buy some popcorn to watch the show (which he said no to), Had I bought 6k in calls and held for 2 days (which I would never do, it would violate my own rules of trading) I would have made 19k and then playing puts today added another 2400 on the downside.
The puts comment was just trolling because he said to not by on the upside in contracts because of share dissolution, so I trolled him saying his stock was going to crash, in reality it is "in play" and will continue to ridiculous things until a major market move like dow down 1000 and Nasdaq down 350 that is the day GME holder will wish they took their profits.
Thanks. So your own rules preclude smash and grabs? would three days suffice? Do you have a lot of rules? Just curious as I am a noob and you sound knowledgable.
I just thought I'd revisit how correct I was, now that we've had a couple days were Dow was down 1000 with huge Nasdaq losses.
I said, long investors should be getting nervous and getting ready to take their profits (sell their positions). In the same week as our conversation GME peaked at around 222, up from 200 when this thread began. Since its height at around 222 it has dipped back down below 200, up to 206 and then crashed to 175.
These long investors holding their positions on faith and gut feeling got royally screwed if they did not sell at the top, which exemplifies why I say, do not greedy, take your wins and move on.
No, smash and grab is all you do you and watch your contracts in real time.
Never stay in a contract over-night, regardless of how sure you are that it is going your way. Like, this week if you bought 6k of 4 tier up "in the money calls" you would have made a fortune but come close of day Monday the wise man would sell the contracts and take their gains. But the fool wakes up and sees the stock gapped 6 dollars higher after close of market. He sees all the money he could have made if he just stayed in overnight, so he discards that rule and starts staying in his contracts over night. He looses 9 times out of 10 but his once in 10 wins keeps him pissing his profits away.
Trading options contracts should be like sticking a tin cup in a waterfall, put it in and pull out quick, you have a full cup of water, who cares if a thousand gallons rush by , you got what you need.
Don't get greedy just snipe steady gains and get out before the time value gets sucked out from under you
Yes, I think GME is overvalued. Its health rating is strong but its earnings and long term earnings make it overvalued by its P/E ratio. Then, it's assets to profit ratio are -1.88 vs + 11.8-12 industry standard. So they are actually bleeding profits at a slow pace.
I think it is overvalued but that is going by real world fundamentals. But I have seen overexuberant optimism win over fundaments again and again.
It could break out on Monday with a crazy unnatural bullish push upward for all I know. But I see a company slowly bleeding money which just fired its COO and is not refilling the position. Investors like fat trimming so it jumps up a bit but the reasons they are trimming fat should make long investors nervous.