the robots are in full control and they sold so many 700 calls expiring this Friday that there is no way for stock to close above $700 this week
I have been watching the options market and the big banks are defending $93 by selling an endless supply of $93 puts expiring today.
They will print billions of the soon to be worthless $93 puts if need be, unfortunately for the banks almost no one is left wanting to buy the $93 put so they will probably start selling an endless supply of $93.50 puts.
Banks make so much money selling soon to be worthless option contracts that they might as well open up option trading in $0.05 increments, open up daily or hourly expirations, and let them trade after hours.
are now down only 6% against all outstanding months and strikes. Option writer has a smaller book loss than the actual stock. By end of week the option writer will have a profit guaranteed.
Might as well assume one organization sold all the options. Ever since your government decided to let banks back into trading in late 90s and then the banks consolidated into a few conglomerates.
In 2008 we determined banks were not very good at trading in 2008, so instead of allowing them to fail your government bailed them out and then decided to rig market so there will never again be large unhedged derivative losses. Now we have a rigged, front running, order jumping HFT bid spreading market.
One thing is sure, banks (net option writers) will not have big losses on stock or equity options. Remember options are no longer the derivative. Stocks are the derivative and stocks move based on option pricing.
is about to put every buyer since day 1 into the black at $3.50.
The option writers controlled by the big 4 banks can not allow anything below $96.50.
between $95.00 - $97.00. The HFT robots have decided to keep AAPL between $95 and $97 until option expiration.
China could kick AAPL out of country, the government could outlaw iphones and stores could refuse to sell Macs and AAPL would still stay above $95.
on how much money option buyers will be done tomorrow?
AAPL options across all contracts are worth $2.9 billion today prior to earnings.
My guess is option writers will pocket minimum $800 million by tomorrow.
does not sound like a good deal. first off it can be sold for $4.10 if not front run by the bot waiting on your order and second, most importantly, risking 100% with a 95%+ of losing it all just for a small return. risk/reward is horrible.
haha stock fell 3% in 1.5 hrs and the option only went up 50% assuming the bot will let you out and to top it all off it is still out of the money and probably worth $0 tomorrow
wish I was a Too Big To Fail bank. could sell thousands of inflated TSLA options that expire tomorrow with zero risk of paying them out. and even if zero turned into a risk the government would bail me out
is a no mans land since August. better odds at casino. do not have to worry about front running HFTs. the HFT robots have completely ruined option buying since 2008. when a stock runs the HFTs widen the spreads considerably allowing no one in and searching for those who want out. Once they find the ones who want out then they frontrun them until the spreads tighten.
HFTs serve no purpose except legalized robbery. I remember that days when you could place a limit order at a certain price and if you were first then you were first one filled
total genius. dollar cost averaging down on an option that expires in few hours. meanwhile option sellers have made close to $100 million on TSLA in just last two days
meanwhile TSLA option writers made $60 million profit today alone
Just for weekly options the seller took in $86million in premiums and only has to pay back $60 million at this morning's price.
If you throw in monthlies they made another $125 million. $150 million straight from option buyers to option sellers in just one stock. The LNKD fiasco that happens once every year or two to option sellers has been redeemed by this one stock.
stock barely moves wiping out $250 million in option value and lining banks pockets even after the algos front ran the gamblers betting on earnings today. Little guy loses.
That sum it up?
I do apply that logic everyday. 20% of all profit made across all ten big banks combined is equity options. It was already brutal trading options but when the HFT algos that front run any size orders took over and the banks created weekly options and started pricing at $0.50 intervals it has been all downhill. better odds in a casino.
No longer a speculator sport it is a sucker sport.
over than you are a pompous over confident moron?
stock barely moves wiping out $500 million in option value and lining banks pockets even after the algos front ran the gamblers betting on earnings today. Little guy loses.
That sum it up?
I noticed they now have $0.25 intervals on CTRP. How long until they have $0.10 increment or $0.05 increments. Probably about the same time the computers start trading stocks out to the 15th decimal place.
Market could drop another 700 pts in last thirty minutes and BABA is golden here at $80 because of the banks ability to sell options against positions they do not have. Of course this same ideology will be the same thing that makes 2008 look like a walk in the park.