Well the straddle covers the bet both ways. The larger pay-off is on the downside with huge returns if GME tanks, but the 5.6 million in Call contracts with even marginal upside gains would offset the puts (the downside bet), the put contracts rapidly lose value if the price goes higher and vice versa.
It looks to me like a 12.375 million dollar downside bet with a 5.6mm insurance policy in call contracts to cover losses if it keeps going up.
But as far as institutional investors go 20 million is nothing, this is chump change, it could be a rope-a-dope to get people to buy puts contracts on the downside because they could sell those puts tomorrow as game stop stock rises.
Game Stop stock is "in play" but by it's own merits and technicals it should not be, so be careful.
Well the straddle covers the bet both ways. The larger pay-off is on the downside with huge returns if GME tanks, but the 5.6 million in Call contracts with even marginal upside gains would offset the puts (the downside bet), the put contracts rapidly lose value if the price goes higher and vice versa.
It looks to me like a 12.375 million dollar downside bet with a 5.6mm insurance policy in call contracts to cover losses if it keeps going up.
But as far as institutional investors go 20 million is nothing, this is chump change, it could be a rope-a-dope to get people to buy puts contracts on the downside because they could sell those puts tomorrow as game stop stock rises.
Games stock is "in play" but by it's own merits, and technicals it should not be, so be careful.
Well the straddle covers the bet both ways. The larger pay-off is on the downside with huge returns if GME tanks but, even marginal upside gains would offset the puts (the downside bet), the put contracts rapidly lose value if the price goes higher.
It looks to me like a downside bet with an 5.6mm insurance policy in call contracts to cover losses if it keeps going up.
Well the straddle covers the bet both ways. The larger pay-off is on the downside with huge returns if GME tanks but, even marginal upside gains would offset the puts (the downside bet), the put contracts rapidly lose value if the price goes higher.
It looks to me like a downside bet with an insurance policy to cover losses if it keeps going up.