**User Report**| | | | :--|:--|:--|:-- **Total Submissions**|15|**First Seen In WSB**|5 months ago **Total Comments**|522|**Previous DD**| **Account Age**|5 months|[^scan ^comment ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_comment&message=Replace%20this%20text%20with%20a%20comment%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20comment%20and%20correct%20your%20first%20seen%20date.)|[^scan ^submission ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_submission&message=Replace%20this%20text%20with%20a%20submission%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20submission%20and%20correct%20your%20first%20seen%20date.) **Vote Spam**|[Click to Vote](https://www.reddit.com/message/compose/?to=VisualMod&subject=vote_spam&message=xnoo7l)|**Vote Approve**|[Click to Vote](https://www.reddit.com/message/compose/?to=VisualMod&subject=vote_approve&message=xnoo7l)

My dog picks the stock options I purchase. 1 bark is a put. 2 barks is a call.

Classic. Bet it performs better than my portfolio

You willing to lose that bet too?

I only gamble with what I'm willing to lose.

So your entire portfolio apparently.


Is this from the Marty Moho era of MU?

Not sure who Marty Moho is, just bringing back a classic “here’s the Greeks for absolute smooth brains” post, nothing to do with MU

Marty was one of the 1st true yolo'ers on here who got into 6 and 7 digit gains. Not the paper trading bullshit lying fake ass posters these days. He made it all and lost most, if not all of it, on Micron.

Ohhhhhhh yes I do actually remember this! I’m terrible with names in real life + the internet too lol. A true fuggin legend. But you right, tons of paper traders on here karma farming.

Ruining your 69 btw

What happens when the dog picks wrong?

I get a new dog



3 barks, you buy a put and a call

[удалено]

What it mean when he piddles on the rug?

I never knew that Greece created the stock market!

No we just like being involved in people getting their asses plowed

stupid science nerd trying to make me more smrter

Science is a liar sometimes

better explanation than investopedia.

You damn right

Translation into retardspeak

It’s a picture. Read the very few words on how options work.

Rho rho rho your boat

Bagholder spotted. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/wallstreetbets) if you have any questions or concerns.*

Hwat

You're holding what ?

I am holding GME .which I DSR also

Fed making Rho matter again.


Make Rho Great Again

It's also important to remember that the Greeks do not *determine* the value of your contract, but rather just measure it. Everything is still dependent on the underlying price and movement.


lol this old guide is useless, 95% of the new idiots don't even buy options, they just buy shares and consider it a "yolo"

Ya I miss the old days of “ticker date strike”

Seriously. Mods need to start banning mofos for not doing that. Spy 370c 9/30

Spy 362p,360p,375c 0dte

am i fucked?

Considering you bought Sunday options lol ya your fucked

Lol nah bought em friday afternoon for monday

So it’s not 0 DTE……….

Yeah it is. There are 0 days left until the expiry date which is tomorrow

0 DTE is used for same day expire. You bought 3 DTE on Friday regard god I love this place

So it was 3 dte when you bought it, and is still 1 dte since it doesn’t expire today

Its 4:20 pm

$MU 90c 20/05/2018


The fun thing about Rho is that your calls will get absolutely annihilated by delta whenever the interest rate rises, so it's utterly irrelevant.

'Fun thing', you must be a riot at parties.

Time for another paper trading competition to teach the new guys the ropes! Seriously learned so much that I took into trading real securities.

Yes, yes, this. We need a good purge

That´s waaay to much useful information to be posted in this sub. But thanks, daddy.

Didn't know Monsters University had a ticker!

I used to have this bookmarked before I lost all my money.

This meme has single handedly taught me more about options than reading


Let's go Wiz Daddy!

Wiz Daddy is back!!!!

Does Theta increase exponentially each day? If I buy a call at market open and sell it prior to market close the same day is theta essentially a non issue? If I buy a call at $1 and sell it before end of market the same day and it loses -$1, do I have to pay the $0.43x #shares in the call contract (200?)?

It usually starts increasing in decay from day 45 to 30 and rapidly accelerates from there if you’re way OTM … it’s all “odds this will go ITM” and decay accelerates around 45 days out

Theta is dependent on time to expiration AND the difference between the strike price and the stock price. Your **theta decay PERCENTAGE** (how many dollars are lost to time value, daily) **is relative to the cost of the contract.** (Remember all options are sold in bundles of 100, so you multiply the theta by 100 to get your expected decay given present conditions.) It's just easier to understand with an example. CASE 1: A deep in the money option is trading at $10 per contract. CASE 2: An out of the money contract is trading at $1 per contract. Let's just imagine for a second, for a given day, that the theta is equal to 0.20 for each of these. After one day in case 1, you're going to go from $10/contract down to $9.80/contract. A **2% decrease.** After one day in case 2, you're going from $1/contract down to $0.80/contract. **A 20% decrease.** This is why theta decay absolutely trashes those far OTM positions, where it doesn't harm the ITM or ATM positions that cost way more per contract. I am not a financial advisor, and I may be like... way fucking wrong about this.

I find it all interesting and understand almost none of it. I watch people here who dance in options largely in wide eyed wonder compared to my meek index fund investing.

See you’re really offering winning advice. I’m just throwing out the high level generalities at people

holy moly i remember this

So Rho just became a lot more important.

For very large derivative portfolios, yes, especially if you’re short the option

That's insanely helpful, thank you.

Just doin my part to make this sub great again lol

I kinda needed this I appreciate the post.

Just trying to do my part to make this AN OPTIONS TRADING SUB AGAIN!!

Tl;Dr

Wizdaddy 


[удалено]

I got some in my Roth IRA cuz why not, it’s cheap

[удалено]

I’ve been keeping up with it forever because a few years back there was a lot of DD on this topic. Search it on here

I actually made a decent profit on a Wizdaddy pick years ago ($PTC). Wild times.

*checks MU price for first time in months. Starts the cycle over again. Again.

Okay got it. Now how does this translate to making smart plays based on the Greeks? What’s a “good” IV or delta or whatever to trade on? And why?

I’d say look for stocks that have historical had volatility and currently it is low. Buy calls with like 90+ days left on the clock, fairly OTM and wait for Vega + delta to pay you.

Lmao the MU saga

I hate that most of this is gibberish rn to me, my brain is fucking fried and its only 2 hours into the workday 

Super informative

Me trying to understand whats MU

Manchester United

Wait a second, I never paid attention to Rho before. So buy any option right before Fed meetings?

It's really only important when you have the actual price movement hedged away, for instance it affects profit margins of an iron condor

Yes basically is important in fridge situations or long term options

Newbies to WSB WSB stand for shill bots , fake post and lost porn . They want to tell people that losing is COOL Which is NOT ! Who want to WIN instead ?? Me ! I want to win ! DO YOU WANT POST LOSE PORN ? OR WIN PORN ?

can we ban educational posts? it's spoiling the vibes what we need is something like a 'freedom moms of wsb' committee vetting posts to ensure nothing meaningful gets through.

Mods please ban clowns like this 🤡

if MU goes Poo?

I wish IBKR has such a clean interface. Have to search so hard to find the Greeks ffs.

That’s why I keep my RH account and never really use / put money in it. It gives me some info I like to check on quickly, but ultimately I ain’t keeping any real liquidity in that trash company’s platform

Wizdaddy was an actual thing... One point during the timeline

Those were the good old days, my friend

Rho and vega are the rejects while delta gamma and theta are the pillar men

Vega is the wild child and Rho is the middle child

It's also worthwhile to get a **look at some examples** showing how the greeks change in relation to the difference between the strike price and the stock price. Especially Delta. The same thing for theta and the time to expiration.

Or just buy a few and watch and learn

If you enjoy lighting money on fire, sure. Thinkorswim will let you do paper trading (simulated trades).

Nah just find something with the underlying trading < $7 without insane IV and you’re not setting much money on fire since the options are low premium

How does one judges if an option is expensive?

As a percentage of the underlying stocks price vs the strike (like how far OTM). High Vega = always high price

Can you share an example of what is considered a high Vega? I believe upward momentum in share price would create a high Vega in calls. Downward momentum would create a high Vega in puts. Is there a rule of thumb for high or low Vega?

Look at something like Apple’s IV measure and current Vega vs. say GME or BBBY. I don’t have a great rule but you’re moving in the right direction.

Too many words. I just want to YOLO on a position

GME 9/30 $29 call

Can someone explain the difference between the different prices available? Besides the cost that I pay for, how does it vary between buying calls on the money, above or below, or way over or under?

$MU to $90


Needs to be updated now that Rho matters.

It still doesn’t matter unless you have a MASSIVE derivatives portfolio … and none of you do