yes you should all definitely do this
@TheSpeculator0 You’re not making the point you think you are. High borrow costs prevent shorts, but smart money sells calls in lieu.. then all of the sudden shares become available and ‘pop’. Look at what the price did since my post… better luck next time. Zinger…
@robbezdjian @TheSpeculator0 hi, do you think the borrow cost is not embedded in the term structure of the option forward you'd be short by selling a call?
@JessicaNutt96 @TheSpeculator0 If you’re trying to say I’m brilliant for selling the time premium while synthetically shorting the stock instead of paying the borrow fee to directly short, you are correct. Thank you for the compliment.
@robbezdjian @TheSpeculator0 but if you're synthetically short you pay borrow/carry through the form of roll up in the forward term structure. the revcon market prices this such that you can convert funding a delta position between the stock and option market so that there's no free lunch.
@JessicaNutt96 @TheSpeculator0 I don’t think you understand how options work. I don’t have time to explain further but to de direct options have what’s called a time premium, this decays as you get closer to expiration. Selling options (not buying) allows the seller to capture this premium. Cheers…
Here is an example and confirmation of selling a deep in the money naked call on a product ‘I know’ will go down in value. Let’s not argue direction, but strategy if direction is right. Please explain to your audience what I did wrong and what you’re teaching. At the time of that trade the time premium I sold was 1.75 or $175 As an FYI, that position is now up > 15% return
@robbezdjian @JessicaNutt96 @TheSpeculator0 me am good option understander. me make many big word and make good post. me am sell option for income. me think me am not pay embedded borrow fee.
Late to the party but as a MM i'll happily take the other side and buy all the deep ITM calls you're selling as long as I can get a cheaper borrow than the implied rate at which you're hammering the calls. Question is, how much of this "time premium" do you think you were capturing? Point everyone's trying to make is that you probably weren't capturing as much as you think you were
@robbezdjian @JessicaNutt96 @TheSpeculator0 You suck as a person.
@robbezdjian @JessicaNutt96 @TheSpeculator0 @michaellistman is this your burner?
@robbezdjian @JessicaNutt96 @TheSpeculator0 What happens if we buy DJT, lend it out to collect from the shorts, then sell a call and buy a put with the same strike? Free $? 💰
@robbezdjian @JessicaNutt96 @TheSpeculator0 Saying “I don’t think you understand how options work” to Jessica might be the funniest thing I’ve seen today
@robbezdjian @JessicaNutt96 @TheSpeculator0 *the calm before the storm*