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polarbearbreeze t1_ja93e57 wrote

anyone else too stupid to understand what this theta gang thing is about, and is too scared to ask about it

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cromwest t1_ja947rg wrote

During the gold rush people who sold shovels made bank.

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thealiensguy t1_jab32ss wrote

Trumps grandpa made most of his fortune this way, setting up brothels outside gold mines. Why mine when you can just get the miners drunk and get hoes to rob them?

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Beautiful_Spite_3394 t1_jab4duu wrote

He started a whole proud family history of "why work when I can steal from someone else to do it for me"

What a visionary.

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thealiensguy t1_jab4i0i wrote

Apple doesnt fall far

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viperex t1_jachc1h wrote

If we could set up brothels just as easily today, it'd still be a good way to make money. You can't lose if you own a brothel or casino

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AdhesivenessCivil581 t1_jacibwl wrote

Unless your Trump. He managed to bankrupt casinos, even while making extra cash by letting Russian oligarchs launder money in them.

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BullyBumble t1_jad699f wrote

I’m guessing it wasn’t “easy” back then either

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TetraMental t1_ja9ab0m wrote

theta gang are people who look around at the people gambling on options here and realize that for every sucker buying a contract, somebody with some shares is on the other side selling them the contract.

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Platypus_Legion t1_ja9kmzn wrote

It also works for puts, and you just need cash for that.

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Kenobi3371 t1_ja9xlus wrote

If you're not on Robinhood you can do covered puts too

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selipso t1_jaah3ul wrote

How does a covered put work? Do you sell the shares first and then buy them back later?

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jonnyohman1 t1_jab1zbd wrote

called a cash-secured put. Selling a put means you'll have an obligation to buy those shares at the strike price if it expires and you get assigned. If you want to get fancy you can then take those shares you were assigned and sell covered calls on them. That's called the wheel.

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AnonymousLoner1 t1_jab5a9x wrote

He's talking about a short sale-covered put.

Just like long shares cover a short call, short shares cover a short put.

That's why you can't do it on Robinhood, since they don't allow short selling.

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OTD303 t1_jabmqmh wrote

The fact they don’t allow That means they know the kind of power that is the retail trader Lmfaoo

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needspantsu t1_jabtx7r wrote

I assume, given shorts have limitless* loss potential, and hood is aimed towards teens and low income peeps, it's a bad mix.

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Kenobi3371 t1_jaah9z1 wrote

No, same as selling a regular put but you have shares instead of cash as collateral

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coinpile t1_jaapxcg wrote

You don’t even need cash, I sell puts on margin.

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no_simpsons t1_jabjmx1 wrote

"with some shares"... I roll naked, dawg

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SokarDaGreat t1_jabkvlj wrote

My greatest flaw in life is not being allowed to sell naked. Truly embarrassing.

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BoofingFluoride t1_ja9op76 wrote

And then with enough time they realize that they're still the suckers crossing the bid-ask spread.

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marlwenplotsky t1_ja9dkd4 wrote

magic bean salesmen, except sometimes the magic beans actually work and you can go bankrupt because of it.

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suasposnte187 t1_ja9ikfj wrote

> except sometimes the magic beans actually work and you can go bankrupt because of it

img

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Necessary-Onion-7494 t1_jaa0knz wrote

Yeah, if you sell naked options on a stock that goes parabolic then you are screwed. However, only idiots sell naked options.

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arpatel530 t1_ja9ol2z wrote

First rule about theta gang is we don't talk about theta gang

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ShankThatSnitch t1_ja9slvq wrote

Theta gang are the ones getting rich off all the loss porn you see posted. Every yolo that has gone to zero, is money in theta gangs pockets

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Youngerdiogenes t1_ja9m6n6 wrote

Thetagang is overrated and most people lose money on it because they lack discipline.

If you’re interested, you can check out /r/thetagang or just research “covered calls” and “selling cash secured puts” on youtube. Plenty of good material out there to learn the basics.

Let me know if you need help, I’ve been around buying and selling options for years and might be able to answer your questions. Or at the very least point you in the right direction.

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Drivesabrowntruck t1_ja9mv04 wrote

I think that has a lot to do with what options you’re selling. I do low IV, low Delta options, high volume on stuff I don’t mind owning. I think where many Theta gang guys go wrong is chasing theta, without looking at the underlying.

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Youngerdiogenes t1_ja9poqx wrote

Thats’s 80% true in my opinion. The other 20% is the lack of discipline. Even when selling safe covered calls on reliable stocks, the newer guys will sell a call on a stock, not realize it’s earnings week. And when the stock blasts past their strike, they suddenly rather keep the stock and buy their contract back for a loss.

Zero game plan and no discipline makes for a bad options salesmen.

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Drivesabrowntruck t1_ja9pzte wrote

So so true, $DIS was a prime example of this. Had 105 Feb monthlies, thing goes to $123 AH earnings day, nothing but a stone afterwards. It actually finished ITM on OE, stock didn’t get called away. One of the few times I’ve had them finish ITM and not get exercised.

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viperex t1_jachuqa wrote

> they suddenly rather keep the stock and buy their contract back for a loss

What?

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Youngerdiogenes t1_jacpnd6 wrote

That sentence makes perfect sense to people who know the mechanics of thetagang.

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pan_berbelek t1_jabthep wrote

So could you explain what those Greek letters mean in relation to options? (I haven't yet traded any options, only shares)

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Youngerdiogenes t1_jabuqyk wrote

I wont spoon feed you info. Google it and if you need help afterwards I would be glad to help

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lostsomuchmoney t1_jac1djl wrote

I need help with delta and gamma that shit is way too confusing. I got vega theta and rho down but those were the easier ones

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CodeMonkey1 t1_jae5ooy wrote

Delta is how much the option price will change relative to the stock price changes, and gamma is how much the delta will change as the stock price changes.

Imagine a stock is $100 per share. You buy a call option for $1.00 with a delta of 0.10. If the stock goes to $101, your option is worth $1.10.

At the same time, as the underlying price changes, the delta itself will change. So imagining the above option has a gamma of 0.01. After the underlying moves to $101, the option delta is now 0.11. So if the price moves up again to $102, the option is now worth $1.21 and the new delta would be 0.12.

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viperex t1_jaci7dr wrote

What delta and what DTE for calls and puts?

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Youngerdiogenes t1_jacq8l3 wrote

The DTE really depends on you and how much time you have to manage your position.

The delta depends on the stock and your strategy.

.30+ delta is for people who snort cocaine amd share needles.

.20 delta is for people who appear normal but wear womens underwear to big meetings because it makes them feel powerful.

Anything less than .20 is for people who idolize Warren buffet and think pepper is too spicy.

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Big-Industry4237 t1_ja9xlk5 wrote

Buying calls and puts - are lotto tickets.

Selling calls and puts, is theta gang, thus, at the casino, you are selling lotto tickets.

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one_excited_guy t1_ja9b0aa wrote

if that pic is not what theta gang is about, then what is it about?

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BullyBumble t1_jad62lo wrote

Dude. Let me promise you - 90% of references to theta, including this post, don’t use the term correctly.

It’s the diff between saying “stock XYZ might go to 100 from 80 by tomorrow” and “…to 100 from 80 within a year”.

You’ll notice if you open the options chain, the farther the strike the lower the price, and the farther out in time the higher the price.

Theta properly refers to the diff between same strike options over x time. So every time “theta gang got me” but price moved through a strike they missed the point of theta.

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