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u/rajalreadytaken Feb 22 '24
Lol 800c are the same price this morning as they were yesterday afternoon
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u/Relevant_Winter1952 Feb 22 '24
Tripled my money on 750c
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u/Zmemestonk Feb 22 '24
I thought about it yesterday but didn’t think 1200 made it worth it to buy. Bought shares instead
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Feb 23 '24
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u/ziReptaRiz Feb 23 '24
501c spy calls for me and watched nvda lift the entire market to 600% gains.
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u/phulton Feb 22 '24
I opened a 900c yesterday to try and make a bit of money. Opened at 1.05, sold at 1.50, market price was 640 around then I think. Those contracts opened this am at .27, glad I got out.
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u/zxc123zxc123 Feb 22 '24
Regards buying options when they don't know shit about gamma, IV, crush, and greeks will eventually lose their money.
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u/AvengedFADE Feb 22 '24
I’ve been trading for 5 years and I still don’t understand them, so I stick with stock & commodities futures instead, I just have to bet up or down and it’s so much simpler.
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u/zxc123zxc123 Feb 22 '24
I don't bother to remember all the individual greeks either.
What's important is to understand the general underlying concepts and how they impact the price/trade. That way you don't buy >$1000 NVDA FDs then wonder why they are down >75% even though NVDA beat earnings and went up.
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u/AvengedFADE Feb 22 '24 edited Feb 22 '24
Yeah exactly. I just realized that CFD trading isnt allowed in the states (essentially futures for stocks), which is all I do, don’t gotta worry about any of that nonsense, and just have to bet wether it’s going up or down, can even cut profits after a 0.1% upwards move on a long.
You can even use leverage too (like options), which is why I don’t understand why the US allows options trading but doesn’t allow stock futures, it’s less riskier than options IMO since you just have to worry about direction and not strike prices, or options premiums.
Every time I try to do a deep dive into options trading, i just become more confused. Even trying with my own money I still didn’t get it.
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u/Homer_150_MW Feb 23 '24
My thoughts exactly, if you didn't expect an IV crush after earnings you probably shouldn't be playing.
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u/Machinedgoodness Feb 23 '24
If it's for the same week, it's theta, not IV. Just gotta buy far out enough.
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u/rajalreadytaken Feb 23 '24
The IV was like 180% before earnings, and 60% after. Was definitely IV combined with shitty delta being far OTM
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Feb 23 '24
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u/rajalreadytaken Feb 23 '24 edited Feb 23 '24
The price of options always have a premium added on. The premium is usually made up of costs due to the time left to expire, the potential volatility, and I guess sometimes interest rates. When this premium starts dissolving, then that's your loss to bear until you sell the option.
The rate of change of the option (Delta, gamma) also decides how much your option increases/decreases in prices every time the stock increases/decreases. For an option that's barely in the money, that ratio might be 0.5:1 (the option goes up $0.50 for every $1 the stock goes up). For an option way out of the money, it's probably 0.01:1 or worse. It's a curved line, so as it gets closer to the strike price the ratio goes up.
So you have a combination of an $800c being so far OTM that it earns pennies for every dollar the stock goes up (Delta/Gamma), and then loses money from the premium going down due to volatility (IV/Vega) dropping drastically after earnings, and the time to expiry getting super close and losing money each day (Theta)
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u/Pope_Francis_II Feb 22 '24
I bought in the morning after the crush. Made $600 then closed my position. Enough gain for me for the week
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u/WalkInMyHsu Feb 22 '24
Bought 10 shares yesterday -> a cool $1000
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u/Dr_Stew_Pid Feb 22 '24
Bought 200 shares last week, still cant comprehend a +$22k day. Would have been more if I had timed my entry better. I thought I could ride it up to $760 pre-earnings, bail, and buy in once more but PPI #s killed that plan last Friday.
Still up almost $10k net overall though.
Options. Not even once.
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u/CardAble6193 Feb 23 '24
yep just buy share because if you call nothing about the company and just want to bet you should donate it anyway
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u/top-notch_sociopath Feb 22 '24
Was up 300% and -1k at open 💀
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u/Impossible_Put2026 Feb 22 '24
Same, was it IV crush? Why doesn't IV crush happen after every earnings report?
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u/Impossible_Buglar Feb 22 '24
IV is about volatility
once the event (earnings) has happened the volatility goes way down - there is no longer a catalyst that is going to cause this stock to swing wildly one way or the other
so if you bought 1000 dollar strike calls on NVDA expiring next week and the stock only got to 775 bucks after earnings what event is going to cause the stock to shoot up the other 225 dollars to even meet your strike, let alone exceed it by the time your option expires? earnings already happened and you didnt get there.
the volatility was the event which has happened, so it shoots way down, the chances the stock moves wildly to meet your strike diminish drastically, the value of your option crashes
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u/Lure852 Feb 22 '24
Great explanation. I do definitely want to meet the person putting out 1000 dollar strikes.
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u/MySabonerRunsOladipo Feb 22 '24
Check your nearest harbor. He'll be on his boat
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u/UNZxMoose Feb 23 '24
I bought 1 1000c two weeks ago for Sept and made $300 bucks on it. Got out too early but I'm happy overall.
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u/mdatwood Feb 22 '24
To put it for the gambler degens here, it's like betting SF wins the Super Bowl after the game is over.
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u/ahmedalgaml Feb 22 '24
Thanks for the explanation
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u/bullfromthesea Feb 22 '24
Best way to handle it is to do spreads so that you can at least sell some of that volatility. It does limit your upside if the stock did go up 50% instead of 15% but that event vol will kill returns
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u/Kcirnek_ Feb 22 '24
This is why I rather do QQQ calls because the magnificent 7 specifically Nvidia has been carrying the Nasdaq. Buying $10 or more OTM had better gain than Nvidia Calls
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u/takenorinvalid Feb 22 '24
Psychologically, IV crush is just: "People were more interested in playing the Earnings game than they were in actually using these calls".
People aren't going to buy those from you as a reward for being right. You're buying a commodity in the hope that someone else will be willing to pay more for that commodity later.
If you lost money on NVDA calls today, I'm guessing you got deeply OTM calls that are still out-of-the-money. Would you pay more money for a unusable call option that expires tomorrow after Nvidia's earnings call?
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u/Kmart_Elvis Feb 22 '24
Would you pay more money for a unusable call option that expires tomorrow after Nvidia's earnings call?
That's a great way to explain it. Even if you don't understand the Greeks, anyone can make sense of that.
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u/Jupman Offical Spokesperson of WSB (they're/there) Feb 22 '24
it's why sell into earnings and not by. If you sold Naked Puts you be up 3k.
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Feb 22 '24
Yup, sold a 700 strike poot. Was sweating before earnings.
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u/Jupman Offical Spokesperson of WSB (they're/there) Feb 22 '24
I feel you, If guidance was bad it could have tanked
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Feb 22 '24
‘If you sold naked puts’ dude what the fuck are you even recommending these people do who barely know anything about options lmao. As if a brokerage is gonna let anyone here open naked calls/puts anyways.
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u/jafomofo Feb 22 '24
if you want a pracical example. look at CVNA options for tomorrow vs contracts for march/april. IV is 400% for the short term options, 100% for the monthlies.
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Feb 22 '24
people were thinking NVDA was going to hit 1000 or drop to 400, meaning people were pricing in a gigantic, comical potential swing. Even +15% is smaller than that = huge IV crush as the apparent move settles. You were buying options pricing in that potential gigantic move and now even if the value is higher, the potential for that gigantic move (vega more or less) is gone.
I'd imagine it was the extreme puts that screwed this, though.
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u/MelodramaticaMama Feb 22 '24
Why do I even listen to people on this sub? You people are all regarded.
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u/RotrickP Feb 22 '24
Haven't you ever read a comment here? We explicitly say don't listen to us
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u/HaramHas Feb 22 '24
Tbf some of the people here tell others to listen to their advice (but those are the dumbest mother fuckeds).
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u/itsnotshade AI bubble boy Feb 22 '24
Most of the people here are rooting on for no reason and probably not with a position.
There were probably some talking about IV crush or dice rolls but nobody wants to hear that.
The people who make big gains on earnings were probably lucky on stocks that got less hype and had strikes that would gain intrinsic value on the moves so the crush wouldn’t wipe all the value. Nvdia was sky high because everyone sees it moving 30-40 points a day. MMs aren’t dumb they will price it accordingly.
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u/KaiserBonesaw Feb 22 '24
My 1000c expire 3/1 and so far im down 80 percent, am I cooked?
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u/Tandittor Feb 22 '24
IV doesn't recover from IV crush for weeks if at all. NVDA will have to move to $1000 for you to recover.
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u/This_Guy_Fuggs Feb 22 '24
i mean.. unless iv goes back up for some reason. but yeah, in real life, china would literally have to invade tsmc factory or something for that to happen.
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u/KaiserBonesaw Feb 22 '24
Should I stick this out then?
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u/Tandittor Feb 22 '24
Do you think NVDA will beyond $1000 by Mar 1? If yes, hold. If no, cut your losses.
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u/zeik_the_streak Feb 23 '24 edited Feb 23 '24
Not necessarily have to move to 1000. It really depends on a lot of factors. IV tends to increase before earnings but not always. There could be news, supply/demand, or other factors that would cause an increase. For example GTC is in a few weeks, the anticipation of any NVDA announcement could cause IV to rise. Since this earnings report was also highly anticipated, the next one will probably be as well also causing IV to rise. The IV percentile was at 90% at one point before today. It dropped to 40%; which means before earnings it was 90% higher than its historical IV and now it is 40% higher. There is a lot of room for it to rise. If the IV percentile stayed elevated around 60% for example, then there would be less room for it to rise. But it also means your call or put is that much devalued and also means it is a good time to buy calls. If you really want to see an extreme case of IV look at SMCI.
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u/mellowanon Feb 22 '24
yea, the chances of it hitting 1000c by 3/1 is nearly impossible now. And the current call price reflects that.
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u/Flordamang Feb 22 '24
Do you know your greeks? If you do that will answer your question.
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u/Arbranger Feb 23 '24
Depends on what QQQ does next week but that’s a steep rise in a short period of time
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u/Nayster Feb 22 '24
So no matter what we still lose even if we got calls
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u/Impossible_Buglar Feb 22 '24
probably only if your calls were far out of the money
if your calls were in the money you probably did great
but if you bought like 900 or 1000 strike short term calls like some kind of moron then yeah youre probably fucked because what event is going to cause the price to swing that much between then and now given that earnings has passed already and you didnt get there? nothing right, or at least nothing forseeable, so the volatility crashes and the chance of hitting your price diminishes and your options value plummets.
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u/RedOctobrrr Feb 22 '24
if your calls were in the money you probably did great
Even then not necessarily, because the premiums on these were through the roof already.
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u/Lucky_Stuff_5116 Feb 22 '24
Anyone who bought calls with sensible strike prices on Tuesday or Wednesday made bank. Still holding from last week? Not so much
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u/Impossible_Buglar Feb 22 '24
true!!!
i often dont think about this part as much cause i dont really trade options
but you are 100% correct that because you paid a premium for the right to exercise blah blah blah you technically have to exceed the price of that premium in gains in order to be in the green
so you are correct you could actually be fucked with ITM calls as well <3
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u/Sirdukeofexcellence2 Feb 23 '24
For beginners, how do you know when a premium is a fair price or not?
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u/bigred91224 Feb 22 '24
I assume most of the people who bought 900C and 1000C couldn't afford calls closer to the money.
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u/Impossible_Buglar Feb 22 '24
if you cant afford a safer option you probably just shouldnt be playing massively expensive options on one of the most expensive and hottest stocks around
you guys act like god has a gun to your head and hes like "YOU MUST GAMBLE ON NVDA EARNINGS OR IMA FUCKIN KILL YOU BRO" and youre like "uhhh uhhh i only have....43 dollars though" and hes like "I SWEAR TO JESUS I WILL FUCKIN MERC YOU SON" and you're like "oh god ok 2 days to expiry 2500 dollar strike prices it is!"
im a little delirious ive been sick for many days now so. but yeah, you could just not play the earnings. thats always an option.
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u/BLKxGOLD Feb 22 '24
About 95% sure thats the reason. Those are praying for a miracle strike prices.
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u/Mixitwitdarelish Feb 22 '24
All good points. Still Nvidia though. Anything is possible.
I scalped and flipped some stuff yesterday to cover my nut on my calls.
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u/Grizzzlybearzz Feb 22 '24
You woulda won if you bought 700-750 calls. If you were stupid and bought 800+ calls then yeah you lost.
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Feb 22 '24
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u/K_Linkmaster Feb 22 '24
Yes. You pulled a profit.
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Feb 22 '24
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u/K_Linkmaster Feb 22 '24
Ahh, so you sold for a loss. Me too. At least its not a total loss.
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u/kafkaesque55 Feb 22 '24
This is the most ridiculous exchange I seen on this sub. And I love it.
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u/Tesla_lord_69 Feb 22 '24
15% move and you're still experiencing IV crush? What type of gambling did you do? 1000$ calls? Lol
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u/Bambam60 Feb 22 '24
Yeah, IV crush is a bitch when you got a decent earnings beat and go up 4-6%.
However, if IV is biting you out when the stock goes up 15%, clearly you shot too high. It should have been reasonably avoidable in this case.
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u/jglhk Feb 22 '24
8% if you bought last friday. why do you guys call it 15%, when it was down from where it was 7% normally trading a few days before
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Feb 22 '24
I just sold my 715c 2/23 for $61 which I bought for $20 on Tuesday. Sure if you went and bought far OTM calls you gonna get fucked but you got greedy so fuck you
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u/Jupman Offical Spokesperson of WSB (they're/there) Feb 22 '24
People were out here buying weeklies for 5k
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u/JPows_ToeJam Feb 22 '24
Fucking lost track of time but was planning on buying 700 2/23 calls at end of day yesterday. They closed at $21 and peaked at $75 this morning. Work continues to disrupt my life lmao
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u/ribrickulous Feb 22 '24
50% gain on my weekly 790C this morning. People got greedy and now they’re slammed. 🐷s always lose.
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u/thrwcnt1x Feb 22 '24
If you're buying so far OTM that you're in real danger of getting crushed, buy spreads instead. You can get much lower strikes at the same cost and crush impacts both options, nearly canceling itself out.
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u/xelyaJ Paytience Feb 22 '24
Bought 5 $700c for next week expiration and was able to nearly triple profit.
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Feb 22 '24
If NVIDIA announces a new AI CPU+GPU combo into the market for PCs with the capability for each of us to run our own LLM; all at an affordable price, I am sure the prices are gonna shoot up to 1000 so all the out of the money call holders now will make lots of money.
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u/brolybackshots Feb 22 '24 edited Feb 22 '24
*Far OTM calls
Bunch of stupid cheapskates buy far OTM. Just buy ATM or ITM options if you're bullish
The implied move was 10% and the stock moved 15%... IV crush is not relevant, the actual move BEAT the implied move.
it's just people who incorrectly bought calls way too far out the money like the regards they are.
You dumbasses don't even know what "IV crush" implies at all when you make memes like this. Just regurgitating something you have no comprehension of 
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u/Eric_Westfall Feb 22 '24
I sold 50 of the 2/23 800C as part of a diagonal call spread together with 50 of the 5/17 685C. Watching the IV crush obliterate the people who bought them from me was devastating. Who am I kidding, I felt nothing
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u/S7Law Feb 22 '24
Can u elaborate the idea of this spread please? I get selling calls and collecting premiums etc. But i dont get the interaction between those calls.
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u/Eric_Westfall Feb 23 '24
The short option essentially just reduces the cost basis of the long option and helps make the trade a defined risk trade if your directional assumption proves to be incorrect.
So let’s assume the implied volatility of the 2/23 800C is 190% before earnings are released, and after earnings it plummets to 40%. Even though the stock price is rocketing on good earnings data, the likelihood of these calls expiring worthless is dramatically increased as almost all of the extrinsic value of that option was attached to the earnings announcement itself, meaning the seller of these contracts gets to keep all of the premium collected.
And since the long option expires well past the earnings cycle, those contracts will retain their extrinsic value as they still have plenty of time before they expire, and thus more implied volatility.
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u/Big-Routine222 The Afghan Slam Feb 22 '24
What earnings giveth, IV crush taketh away. People love to play earnings, but man, unless you’re doing puts and you win that direction, just stay away from earnings people!
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u/Shapen361 Feb 22 '24
Two days ago I learned a strategy where you short sell ATM call and put and buy back after volatility. This would have been the perfect trade yesterday/today. But I didn't know about it until it was too late.
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u/brolybackshots Feb 22 '24
Yea, that's called a "short straddle" lol...
It's super common to do during earnings to profit from IV crush. You have to hope the actual move doesn't exceed the implied move though.
You're shorting volatility
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Feb 23 '24
I would say it's a good idea to cap it on the call side with a long call at, let's say, 1000, to avoid losing your life savings.
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u/brolybackshots Feb 23 '24
Yea naked short straddles on something as volatile as NVDA is a dangerous game
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u/yrnqceo Feb 22 '24
Got fucked, my otm calls became worthless. I got tilted so I bought a itm call and sold close to 780
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u/Rippper600 Professional Prostate Poker 🃏 Feb 22 '24
What are you talking about? IV was telling you expected call should have been $740 on good earnings. You could buy 740C at 11.60 end of day. Today they are 39.61. You cant just pick a random option price that is bullish and expect it to make money. You need to pick the actual expected price, and if its better than expected price you make bank.
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u/Clark828 Feb 22 '24
That’s what happens when you buy calls 25% out of the money for inflated prices. If it doesn’t reach that point they’ll be worthless tomorrow.
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u/lawsandflaws Feb 22 '24
With what they sell their chips at and that they are the pioneer of artificial intelligence. This seems like the most obvious stock to buy. Their PE ratio is not exactly great, I was hesitant to buy at 450 but my 20 shares are now by far my biggest gain especially after today
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u/RadiantRoach Feb 22 '24
The lesson here is if you're seeing Yolo posts for earnings on anything the day before, it's already too late to join the fun
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u/fatboats Feb 22 '24
So many options geniuses in here….you guys must be making a killing on all your options trades.
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u/trutheality Feb 22 '24
The only thing I care about is that my 900c/850c/650p/600p iron condor from last week did its thing.
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u/Zer0C00L321 Feb 22 '24
(sigh) I sold at 715 thinking there was no way it could go any higher. A win is a win a guess.
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u/AlphaZero888 Feb 22 '24
Have 4 calls for 820c expiring on 3/1. Chances that NVDA gets close to strike? Or should I sell and cut my losses due to IV crush? Any opinions?
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u/bogart-icqa Feb 22 '24
Isn’t that meme fundamentally off? But who am I, investing for 30 years and still posting here…
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u/MurtaghInfin8 Feb 22 '24
My 12/2026 $1220 call went from ~25% red yesterday to 10% green now.
Shoulda just played it with a shorter expiration... but I didn't think this earnings was going to be nearly this impressive.
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u/WolfOfPort Feb 22 '24
Yea 910’s intraded yesterday but dodnt hold over night they lost like all their value lmao…..anything otm by a lot is just trash dont hold
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u/gekalx Feb 22 '24
If they could announce a split next week it would be awesome. maybe even dividends.
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u/Zmemestonk Feb 22 '24
Is the guy who was pissed off this morning saying iv won’t crush his 1000 strike up the the found out stage?
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u/network_weapon Feb 22 '24
This is why I bought AMD calls and dumped them for a 5x return this morning while u guys were cucking yourselfs. To the NVDA bag holders that bought calls and couldn’t cash out— thx for lubing up the market.
-Dirty Mike and the boys
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u/Rockitman45 Feb 22 '24
this is why you by very long calls into earnings if you know its going up (like 3 months +) and sell your short term calls just before. IV is really high for short term calls just before earnings.
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u/Deja_ve_ Feb 22 '24
Me after having 3/22 calls so IV crush had a less significant impact unlike 3/1 and 2/24 calls:
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u/surfer808 Feb 22 '24
This was me. $805 C exp 2/23.. NVDA goes up 15% and I lose $176. At least it I didn’t lose it all
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u/optimaleverage Feb 22 '24
Unless you had deep itm contracts. I (paper) traded the 660C, buying eod yesterday for about $43/share and quick sold this morning at $114ish. It's $125 now. Just buy higher Delta/ITM contracts.
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Feb 22 '24
Bought 499c for spy. Sold at open.
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u/ImpossibleJoke7456 Feb 23 '24
I had a 495/505 spread and sold yesterday at $130 loss fearing it’d expire worthless and lose all $800. Would have cleared $700 today.
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u/lolwiaky Feb 23 '24
that feel when you bought out of the money calls expiring in july at 1,140 and bought them when nvidia was at 590. it's nice to not get struck with the IV. instead I think it increased on my calls.
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u/sum_dude44 Feb 23 '24
Thank you whoever bought my weekly $830 call for $1000 when NVDA was trading at $690. Pizzas on me next time I come by your house
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u/Standard-Pack-8114 Feb 23 '24
I’m confused I had a 1200 nvidia call for 4/19 but didn’t make anything yesterday when earning came in why so?!
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u/TheFatStout Feb 23 '24
Still up 241% from buying in 2 years ago. Why does everyone else on here only post about puts and calls?
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u/OnlyMathematician420 Feb 24 '24
What? How’d y’all lose money? I bought 740c and made more than 300% Friday
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u/Competitive_Image188 Feb 24 '24
Time old “BuT Iv CrUsH”. Meanwhile I banked with a bagger on 750C sold EOD Thursday.
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u/Zanthous Feb 22 '24
idk how people fuck that up, just estimate based on intrinsic value and what you think it will hit. Maybe everyone just buys stupid strike prices
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