Whatever it is he should just dump it now and let someone else worry about a stock going bankrupt. Dump it and buy some way out of the money puts to get his gambling fix for the month.
https://www.investopedia.com/terms/p/protective-put.asp#:~:text=A protective put is a,a fee, called a premium. I already posted my position lol. ?? And again, you are still not understanding what is being discussed. If I thought GME was going bankrupt then why am I not selling my shares and shorting it? lol There is no point delta hedging, or delta zero or position delta or whatever traders do to manage their own incompetence, because the put options are being held until expiry so everything will be intrinsic value. Do you not understand what a going concern means in accounting? I said the opposite of what you think I said. What Is Going Concern? Going concern is an accounting term for a company that has the resources needed to continue operating indefinitely until it provides evidence to the contrary. This term also refers to a company's ability to make enough money to stay afloat or to avoid bankruptcy. Why do you guys think this is a bankruptcy play???? It's a bankruptcy HEDGE! lol Here maybe you all should read this:
If there is a conceivable possibility for bankruptcy why would you buy the stock? Just buy cheap OTM puts. I mean if bankruptcy is on the table then upside is limited. If it’s not a possibility the puts are a waste of money.
I thought we already came to this conclusion. If puts are so cheap then clearly the market doesn't think bankruptcy by October is possible...at this time I don't see any reason to hedge.
The puts cost $450? That’s 5% of the value of your position instantly lost. What’s your current profit on the position? That makes a huge difference when calculating how much the puts are costing you. If you forked out 9k for the initial position your current return is 10%. The puts would instantly drop that to 5%. You’d probably be better off buying VOO and keeping a full time job to keep adding to that. If you really think there is a high chance of bankruptcy you should dump it and search for better prospects. The best way to lock in current gains is to just take your profit and run. Search for other opportunities. In the equities world I haven’t found a reason to hedge. You last statement implies the chance of bankruptcy is low. So your considering giving up gains for a lottery ticket?
It's $450 for 6 months lol. You think I'm trading GME to make 10%? I think in terms of 10 baggers not 10%...thus the (2008) Lambo
Without knowing the initial cost of your current position we can’t know how much of your current profit you’re giving up. If you’re confident it’s a moon shot you could sell out now and buy back in when it’s 450$ higher and be in the same position as buying the puts. I’d run a close stop and get back in on a break after it’s triggered. The problem with this thread is you won’t provide the details of your position. You’re just trying to steer us to your chosen answer. You can’t get a complete answer when you withhold several key variables.
Why are you guys obsessed with how much profits you are giving up all the time? I don't buy anything that doesn't have 10x potential, and I don't use stops. It's either profits or bk. Those are the two possible outcomes. $450 would be a drop in the bucket to hedge a 10k position for 6 months. Also, profiting $450 does not put me in the same position as buying $450 worth of puts...if it goes bk the $450 I made isn't going to help much is it?
Ok so you just want to make sure you don't lose everything when and should the company goes tits up, anything less than that, you don't give a shit cuz that's incompetence and you don't believe in delta-hedging against that. You can lose $9K, $8K in addition to the $450 option cost (btw when the company goes bankrupt, you are not gaining $450, you are still losing that $450 just so you know cuz that's purchase cost of options that you will never get back) up to Oct. 18 and you will be fine with it but total bankruptcy of the company and losing everything, oh that's big, that's not incompetence, that you need to hedge against. LOL We get it now. Well I give you the seal of the approval. You are completely hedged against bankruptcy. You didn't miss anything. There! In the meantime, GME is going to go sky high with 10X potential just like back in Jan. of 2021. Why? Because Roaring Kitty says so now again. LOL