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Note that $240 is the price of a put for a single share, which are typically bought in increments of 100 with options. So buying a single one of those options r

Note that $240 is the price of a put for a single share, which are typically bought in increments of 100 with options. So buying a single one of those options requires $24,000. There are definitely people spending that kind of money over in WSB, for given the volatility nature of the meme stock, its a lot of money to put on the line for anyone not in the WSB mindset, or who isn't so flush with cash that that's a drop in the bucket.

fairity 6y ago
Yea, it's definitely not a small amount, but at the same time, it seems like a very safe bet given the fundamentals of the underlying company. You're basically betting that the volatility will subside within 1 year. If you're right, your ROI will be (320-240-X)/240 where X is the share price 1 year from now. If X is 30, ROI is 20%. Even if you're wildly wrong, and the share price is still $100 1 year from now, your ROI is only -9%.
deleted 6y ago
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