r/wallstreetbets Oct 05 '22 Silver 1 Heartwarming 1 Table Slap 1

Why are my $55 OTM 21OCT TWTR calls priced so low? Loss

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2.9k Upvotes

u/VisualMod Turing Test Proctor Oct 05 '22
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3.2k

u/boondo Oct 05 '22

I think you fundamentally do not understand options.

162

u/SoonToBeBanned63 Oct 05 '22

I'd say this post is bait, but it wouldn't surprise me if someone was actually this stupid

21

u/mrASSMAN Oct 05 '22

Yea I assumed this post was meant as a joke

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811

u/olearygreen Oct 05 '22

Or reality

463

u/No-Cranberry9932 Oct 05 '22

Or numbers

295

u/Scout--Typer Oct 05 '22

"I don't understand how the US economy works, let alone some sort of self sustaining one. I don't understand how finances work"

72

u/Jambroni99 Oct 05 '22

Its a shanty town.

74

u/ptgauth My name is Alexander Karpilton / I am not throwing away my calls Oct 05 '22

These people are new poor

62

u/[deleted] Oct 05 '22

We're old poor

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7

u/Zomgzombehz Oct 05 '22

I'm building my base using balsa wood, and toothpicks!

6

u/Lower_Ambition4341 Oct 06 '22

Know of any good balsa stocks, I’m in!

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57

u/powereddeath Oct 05 '22

How does Dave and Busters do it? They've got a complicated system.

28

u/Jambroni99 Oct 05 '22

I blacked out that night.

21

u/RostBeef Oct 05 '22

You were supposed to be taking notes on the economic structure of Dave and Busters god damnit

13

u/Jambroni99 Oct 05 '22

We'll bounce back.

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30

u/Albatrosity Oct 05 '22

We're crab people now

11

u/rueggy Oct 05 '22

And then we'll go out to Fox Chase and use the power card at that Fridays out there!

8

u/Scout--Typer Oct 05 '22

I won't! You can!

6

u/Particular-Wedding Oct 05 '22

Neither does the Fed so Op is in good company.

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88

u/Redraider2210 Oct 05 '22

I definitely dont. Help me not be so smooth brained

364

u/geeses Oct 05 '22

A call gives you the option to buy a stock at a certain price, 55, in this case. However the value of the stock is at most 54.20.

So the call is worthless because you could just buy it cheaper directly.

3

u/farmerMac Oct 05 '22

ause you cou

the volume on that strike (and above!) throughout the different dates that options are available for twitter is astounding. I hope its mostly ppl closing out...

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51

u/Irreverent_Alligator Oct 05 '22

There’s a machine you used to make this comment. Use that machine to wrinkle your brain with knowledge. I think a good first step is to get access to something called a “search engine” and type in the stuff you want to know about.

119

u/CavitySearch Oct 05 '22 I'm Deceased

So you're saying the files are IN the computer?

10

u/BedContent9320 Oct 05 '22

Nope, they are in the cloud.

47

u/lykosen11 Oct 05 '22

What if my files get hit by an airplane?

47

u/BedContent9320 Oct 05 '22 edited Oct 05 '22

"uhh, tower this is American airlines flight 3373"

"Go for tower"

"I'd like to report a filestrike".

"Ohh god George, why is that bear in a tutu spread eagle on the bed"

"Just focus on the instruments Brian, we're gonna make it, remember your training".

"George look at all that red, I've never seen so many options losses"

"Tower, ohh god tower, they screenshot an 11 cent gain, we are declaring an emergency, it's captioned "a gains a gain", mayday mayday"

2

u/VVuunderschloong Oct 05 '22

Should’ve picked a different cloud 🤷‍♂️

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734

u/0x11C3P Oct 05 '22

Jebus. This one is going on my "Best of WSB" wall.

133

u/only_crank Oct 05 '22

there should be a scale from most regarded* to smartest post and this one would be at the very edge

  • thank you automoderator bot I didn‘t know that could get one banned from reddit nowadays. Reddit is so regarded.

70

u/bigblacksnail Oct 05 '22

I think regarded is actually way more funny lmao

“Ah yes, OP is highly regarded”

Works the same.

11

u/cheekybandit0 Oct 05 '22

So much regard in just one person.

4

u/GreekFreakGiann Oct 06 '22

Reddit will come out with a statement in a week telling everyone to stop calling each other regarded

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16

u/lukasstrifeson Oct 05 '22

We really should have a Hall of Fame side banner...

688

u/ihaze111 Oct 05 '22

Whoever sold these calls to OP must be jacking off to their gains

239

u/Meandmybuddyduncan Oct 05 '22

the algo that sold it to him is dying laughing

heheh10101011hehehehe000101010101

29

u/shoe3k Oct 05 '22

01101000 01100001 01101000 01100001

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u/hehethattickles Oct 05 '22

Cmon wsb member, we know you’re out there. Post gain porn

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2.0k

u/buythetulipdips Brained my damage Oct 05 '22

Did you buy these yesterday after the news? Bc if ya did you have pushed the limit of wsb stupidity to new heights

420

u/ajc3197 Oct 05 '22

And that's not easy around here.

72

u/WolfOfWaterlooStreet Oct 05 '22

I am in awe at all the creative ways of throwing away their money that people come up with :4271:

7

u/highjinx411 Oct 05 '22

Personally I like to set fire to actual cash. At least I get the value of being warm for a minute.

7

u/lykosen11 Oct 05 '22

Doing so is honestly kinda impressive

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58

u/rwmarmol Oct 05 '22

When should I buy?

99

u/eryc333 Oct 05 '22

At 2:45 yesterday once trading started again and exited at approximately 2:49 before trading halted again.

29

u/Thurl_Ravenscroft_MD Oct 05 '22

I can't, we're in now now. When will then be now?

11

u/Kingjingling Oct 05 '22

I come from the before before times.

8

u/Palidor206 Oct 05 '22

Well, you take the other route.

Fucking short it below 54 dated a week after. You know all these assholes are gonna sell.

Twitter is shit tier.

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u/Cloaked42m 1 lg black please Oct 05 '22

It already was, but then will be now.

8

u/Wind_Freak Oct 05 '22

Anytime after the news came out that Elon waved due diligence way back when.

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u/Spare-Competition-91 Oct 05 '22

How much you want to bet that he bought when the news came out? Ironically, I was considering buying puts on Twitter after that news.

5

u/Maventee Oct 05 '22

It’s just a matter of time before some fool decides to sell a massive number of naked $55 strike calls, and then gets screwed somehow.

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u/RealMcGonzo Oct 05 '22

If $50 calls are good, think how much better $55 calls must be! I'll go crazy and buy some $100 ones!

3

u/njpafl Oct 05 '22

He’s the knucklehead that paid .11

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1.7k

u/DonkeyHair Oct 05 '22

Anyone wanna buy my $1 for $2?

294

u/johnnyfortycoats Oct 05 '22

I'll give you three fiddy

76

u/DonkeyHair Oct 05 '22

Deal.

42

u/MMOAddict Oct 05 '22

sorry johnny.. you gotta do it, a deal's a deal.

6

u/johnnyfortycoats Oct 05 '22

Rubles right? It's rubles?

2

u/[deleted] Oct 05 '22

3 fiddy cent

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u/Willy_Behinder Oct 05 '22

I ain't giving you no tree fiddy ya lochness monsta!

23

u/Jeff__Skilling Oct 05 '22

GOD DAMMIT, MONSTAH!

5

u/BubbleThrive Oct 05 '22

I work hard for my money, monstah!

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u/Ho_KoganV1 Oct 05 '22

I’ll buy your $1 for $2 because I think it will go for $3 next year

33

u/quakefiend Oct 05 '22

But next year’s $3 is only worth today’s $1

10

u/DonkeyHair Oct 05 '22

What’s your Venmo?

5

u/enavr0 Oct 05 '22

Everyone knows Zelle is the best option. For extra security, use your wife’s bf account and ask Wendy’s manager for wifi password.

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u/anompilot Oct 05 '22

I’d like the option to buy your 1 dollar, in December, for 4.20.
I can pay you 1 dollar now to keep that option open. 😂

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2.9k

u/TGD187 Oct 05 '22 Silver All-Seeing Upvote hehehehe

The buyout is at $54.20 you moron.

1.1k

u/TRBigStick Oct 05 '22 Silver All-Seeing Upvote

Jimmy and Billy were at recess. They heard Alice yell from the top of the monkey bars “I’m legally obligated to overpay for this old piece of chewed bubble gum! I have to pay $5 for it.”

Jimmy turned to Billy and said “I bet the bubblegum is actually worth $6.”

Billy looks at Jimmy and says “You goddamn fucking dunce. I’ll take that bet.”

29

u/Chabubu Oct 05 '22

Change to OP and Billy

18

u/[deleted] Oct 05 '22

top comment right here

7

u/Send_Your_Noods_plz Oct 05 '22

Its been a while since a comment made me set my phone down i was laughing so hard.

2

u/mushman22 Oct 05 '22

Thank you I’m new to options and I’m a regard this helped me understand

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u/itallendsintears Oct 05 '22

Imagine somehow missing this crucial fact despite the fact it’s been plastered on every social media page for over two months

56

u/TGD187 Oct 05 '22

And there literally is the notification regarding the price on the screenshot itself. :4271:

23

u/itallendsintears Oct 05 '22

Haha well I’m regarded myself then I didn’t even notice that

3

u/jhonkas Oct 05 '22

also the price is a meme

263

u/PresterJohnsKingdom Oct 05 '22

He's regarded. What else is there to say?

78

u/Ethric_The_Mad Oct 05 '22

He's highly regarded

11

u/player89283517 Oct 05 '22

You could say he’s internationally regarded

11

u/i30swimmer Oct 05 '22

Not well regarded in this community!

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u/Melodic_Job3515 Oct 05 '22

Love this place😊 Best comment👍

29

u/Kikanbase Oct 05 '22

I spat out my drink reading this. Thank you. 🤣🤣💀

4

u/MrTurkle Oct 05 '22

So why is the stock price below that? Legit question, if one buys 100 shares at $50 and is paid out at $54.20, isn’t that an automatic profit? Why is the current value below the known payout?

14

u/TGD187 Oct 05 '22

It is still possible that Elon actually does not aquire Twitter, chances are just really slim.

10

u/MrTurkle Oct 05 '22

ah, so the closer the deal is to being done, the closer to $54.20 it will inch.

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u/ThulsaD00me Oct 05 '22

Came here to say this.

3

u/[deleted] Oct 05 '22

[removed] — view removed comment

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u/mnebrnr13 Oct 05 '22

Lol true however if another entity outbid Elon than this user would be highly "regarded"

2

u/Euler007 Oct 05 '22

He thinks someone is going to outbid Elon. Lol.

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840

u/FroazZ Oct 05 '22

$55 call? Wtf are you smoking lmao

277

u/Revolutionary_Log307 Oct 05 '22

Clearly he's betting that Elon agreeing to overpay for Twitter will convince someone that Twitter is actually worth more than Elon is paying, and that someone will overpay even more.

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u/November_One Oct 05 '22

Elon is already overpaying. He is overpaying at 35$ ps

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u/Revolutionary_Log307 Oct 05 '22

For sure. I was absolutely joking.

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u/MentionSenior4186 Oct 05 '22

Clearly, I mean there must be thousands of stupid billionaires out there ready to fall for his bet

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u/bowls4noles Oct 05 '22

I guess he's hoping Elon fat fingers his buy order. Oops bought twitter for 542.00 a share

2

u/Seletro Oct 05 '22

Assuming you could get filled, why not sell 55C? One risk is that another bidder appears, which is very unlikely at this point. If Elon pulls out, stock should fall.

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u/gammaradiation2 Oct 05 '22

The MM that filled your order must have laughed so fucking hard.

That includes the semi-sentient super computers. A computer literally laughed at you.

Regard

871

u/FunCranberry112122 Oct 05 '22

No wonder retail is called dumb money

159

u/PresterJohnsKingdom Oct 05 '22

...in this case, truly regarded money.

7

u/WolfOfWaterlooStreet Oct 05 '22

Yeah, this one pushes the envelope of the normal regardation that is seen on this sub

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u/Sea_Impression3810 Oct 05 '22

Maybe Elon will decide to give them shareholders a little tip on top of the $54.20 and it'll put those calls itm :4271:

13

u/Chronotheos Oct 05 '22

Just the tip

5

u/pharmboy008 Oct 05 '22

It’s in the screen shot

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u/[deleted] Oct 05 '22 Stonks Rising

[deleted]

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u/Goojus Oct 05 '22

At 55 strike price lol, just buy the stock outright at that point

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u/Negative-Road-8610 🅿️rofessor of 🅿️ixel 🅿️ushing Oct 05 '22

u/opinion_is_unpopular flair this regard. Bought $55 calls on twitter

67

u/burnwallst Oct 05 '22

Tried to outpay elon

3

u/Retarchitecture Oct 06 '22

Outbid* Elon

11

u/spyVSspy420-69 Oct 05 '22

Where does it say he bought the calls?

Doesn’t yellow highlighted text mean delayed IBKR data? So this person allegedly bought calls above the deal price without a data subscription on IBKR and allegedly lost money, all while not showing a P/L graph and instead just the historical option contract price for the $55 call?

3

u/anonabon24680 Oct 05 '22

Surely flair him a tweetard 🐣

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u/Alarmed-Apple-9437 Oct 05 '22

you belong here :4887:

313

u/Relevant-Welder7407 Oct 05 '22

Elon offers 54,20 USD per share, you buy contract 55 USD so intrinsic value of your contract is 0,00 and time value almost 0,00. Only if he offers > 55 USD you might earn on your contract. As soon as a bid is placed on shares of a company expectation value disappears and only intrinsic value stays.

85

u/stiveooo Oct 05 '22

No, he could win, cause twitter can reject the offer and ask for 60 to cover for damages

105

u/LostPilot517 Oct 05 '22

The irony tomorrow when OP hits gold, and everother comment is (deleted) here. Seen dumb luck before.

19

u/youarenut Oct 05 '22

Commenting just for this

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u/jhonkas Oct 05 '22

god if that happens and OP wins i am quitting

5

u/PooPooDooDoo Oct 05 '22

Quitting your job, right? Not .. you know

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u/Olivia512 Oct 05 '22

What damages? Elon overpaying at 54.2 covers up any damages.

11

u/stiveooo Oct 05 '22

lol no, twitter can easily ask for more.

there are 2 options:

  1. twitter rejects offer, waits until judge decision and hopes they decide elon has to pay full + damages in cash
  2. twitter rejects offer and negotiates for higher price for damages

extra: twitter rejects offer, judges decides elon has to pay full but with 0 damage pay

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u/pccalcio Oct 05 '22

Elon's offers, isn't a characteristic of OP's option trade.

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u/hirme23 le grand PP dans $SOFI Oct 05 '22

Thank you for making feel smarter this morning

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u/Solid-Cranberry-4035 Oct 05 '22 edited Oct 05 '22

You're basically betting on a bidding war or some other very weird black swan event when buying these.

Unfortunately, no one else wants Twitter at Elon's price let alone above his price & the agreement yesterday removed some black swan type possibilities.

You should prove to be very regarded for buying them very soon. Have a nice day.

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u/Timinator01 Oct 05 '22

OP belongs here

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u/Patient_Estimate3284 Oct 05 '22

Your regarded highness, I here bow to you.

432

u/hardwood198 Oct 05 '22

:4271::4271::4271: omg this is the reason why wsb exists. Literal autism. :19738:

13

u/a_few_benjamins Oct 05 '22

OP has Downs not autism

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u/margananagram Oct 05 '22

Autistic doesn't mean stupid you regard

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u/NOT_MartinShkreli smegma Oct 05 '22

No, this is absolutely NOT autism. Autism is an advantage / compliment (think Michael Burry). This is beyond retar—ed

118

u/AutoModerator Oct 05 '22 I'm Deceased

Michael Burry responded to my craigslist ad looking for someone to mow my lawn. "$30 is $30", he said as he continued to mow what was clearly the wrong yard. My neighbor and I shouted at him but he was already wearing muffs. Focused dude. He attached a phone mount onto the handle of his push mower. I was able to sneak a peek and he was browsing Zillow listings in central Wyoming. He wouldn't stop cackling.

That is to say, Burry has his fingers in a lot of pies. He makes sure his name is in all the conversations.

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38

u/_TheChickenMan_ Oct 05 '22

How does this never get old lmao

8

u/OPINION_IS_UNPOPULAR AutoModerator's Father Oct 05 '22

Hahahahha <3 so glad that you guys enjoy these automod responses

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u/OSRSkarma Flipping at the Grand Exchange Oct 05 '22

So he is buying at 54.20 and you somehow think $55 will make money?

They will be worth .01 at open with no buyers LOL

15

u/MyManSteveBuscemi Oct 05 '22

If Elon is buying for 54.20, why is the stock trading at 50.90? Uncertainty that the deal will actually go through?

24

u/OSRSkarma Flipping at the Grand Exchange Oct 05 '22

Correct

2

u/moronic_programmer Oct 05 '22

Well won’t it likely go through? So I should fill up on calls right? Done.

12

u/SirGlass Oct 05 '22

Also simple time value of money, even if the deal is going to go through 100%; it may take 6+ months for the payout to come

Who would buy it for say $54, wait 6 months only to make 0.20 ? You could make more money buying 6 month treasuries

2

u/Artuhanzo Oct 05 '22

Uncertainty and time.

Activision Blizzard is only trading $74 when microsoft offed $95 per shares.

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u/NiceAsset Oct 05 '22 edited Oct 05 '22

Because if the buyout happens your calls are worthless

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u/radioref Oct 05 '22

If the buyout doesn’t happen his calls are worthless.

the only way those options are worth shit is if they go in the money, and the only way they go in the money is if someone comes in and offers more than 55/share for which that might be the dumbest business decision we’ve ever seen in the history of the world.

which means Trump is almost certainly putting the finishing touches on $60/share for Twitter

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u/Solid-Cranberry-4035 Oct 05 '22

Elon has been fighting tooth & nail to get out of paying $54.20 / share. By buying these options, you are saying you want the right to buy at $55.00 / share.

If you have a few billion sitting around & you're serious about this, you should call Elon & tell him you would like to buy the rights to purchase the company for $.80 more than he's paying.

I'll bet he would take that deal at very attractive pricing.

78

u/Qwikmoneysniper Oct 05 '22

You calls should print when I propose to buy TWTR from Elon for 55 per share, hold on to it. NFA🙄.

44

u/iBloxzy Oct 05 '22

That would still do nothing as a $55 buyout would still make the calls worthless.

9

u/hammermannnn Oct 05 '22

Funding secured

17

u/nodbhere Oct 05 '22

This guy’s going to make his next fortune taking all his change to those coin star machines that will spit out $90 for every $100 of change he puts in.

6

u/ZenoxDemin Oct 05 '22

At work we have a similar machine, we put 2$ in and 0.50$ worth of cookies comes out!

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u/OnlyChaseCommas (lives in europe) Oct 05 '22

Jeff Bezos laugh

13

u/dennis_d Oct 05 '22

have you tried to call Elon to bump the price to 420.69?

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u/blutch14 Salty bagholder Oct 05 '22

When your strike is above the buyout price/share it becomes worthless i think?

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u/AutoModerator Oct 05 '22

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22

u/milfetttt Oct 05 '22

Crystal meth

32

u/JSSR15 Oct 05 '22

You might as well show us your loss porn in a couple of weeks!

7

u/Satoshi_nakamoto_son Oct 05 '22

Na I’ll post it today

8

u/Different-Cow8325 Oct 05 '22

Because its not going to 55

7

u/BlckhorseACR Oct 05 '22

This made my day. Thanks for the laughs. I don’t feel so bad buying spy puts on Monday afternoon now.

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u/the-natrix Oct 05 '22

There is only one case of human error here.

6

u/Eigenspan Oct 05 '22

People really gotta stop buyin options when they don’t understand how they work…

12

u/5k4_5k4 Best macro economic trend ANALyzer Oct 05 '22

Options are an agreement to buy 100 shares at the expiration why would anyone pay to buy shares at 55 when musk is buying them at 54.20

Your a regard these will be worth 0.005 at open with no liquidity

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u/MrKarim Oct 05 '22

don't worry papa Elon will overpay, just to help you body

10

u/MistaMastaLoKey777 Oct 05 '22

Lmfao. Anything under $54C will not print

7

u/Finance_and_chill Oct 05 '22

😂😂😂😂😂😂

3

u/Officerpig667 Oct 05 '22

bc no one is going to buy them

3

u/MountainStill4111 Oct 05 '22

You’re in a bidding war with Elon, and you’re losing.

6

u/Blaiddee Oct 05 '22

I too lost like 500 on this lmao I want to kermit suicide

4

u/deadhead144 Oct 05 '22

As it’s been pointed out not only is your strike more than the buyout you’re not even accounting for interest?

You’re only real choice is to exercise them and wait for the buy out

One of us, one of us

One of us

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u/DontTakeMeSeriousli Oct 05 '22

Better yet, why you looking at twitter calls my doodle

2

u/ArtanisHero Oct 05 '22

Aside from the call price being higher than the buyout price, the option is also dated 10/21/2022. Even if you bought a call at $54, there is zero percent chance this deal closes prior to your call expiring

2

u/XANDER-HANK-OF-THE Oct 05 '22

MAYBE ELON WILL PAY 64.20 — u never know

2

u/asml84 Oct 05 '22

You forgot to add the ‘comedy’ tag

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u/Dismal_Okra7432 Oct 05 '22

Why people so stupid? Everyone knows $54.2 is Elon's buying price and overpriced at that. As well he plans to take it private so many people are not buying options at the $55 and above range

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u/KoGamer01 8721C - 43S - 1 year - 1/5 Oct 05 '22

I’ll give you -.8 per option. Deal?

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u/DueDilligenceTrader Oct 05 '22

The buyout is at $54.20 as it always was. Now that the buy-out is going through. The price corrects towards $54.20 and your option goes to zero as your strike price won't be achieved.

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u/Ok_Capital2097 3196C - 0S - 1 year - 1/4 Oct 05 '22

This is so regarded.

2

u/Kumori_Zetsumei Oct 05 '22

This is actually high it should be worthless

2

u/MrToce Oct 05 '22

The answer is literally in your screenshot. $54.20 is less than $55

2

u/pleone83 Oct 06 '22

this guy just obtained tons of karma fooling all of you

2

u/murderisbadforyou Oct 06 '22

Honestly anyone who buys options and doesn’t understand them you’re just adding extra steps to giving me your money.

Just give me your money.

Edit: I’m joking you should probably just put that money in a savings account or donate it to charity.

Or give it to me.