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I'm not in a position to give you specifically financial advice, but there's no easy money to be made in GME, the entire thing is incredibly risky. The LEAPS fo
by Kranar 6y ago
I'm not in a position to give you specifically financial advice, but there's no easy money to be made in GME, the entire thing is incredibly risky. The LEAPS for GME in the 10-50 dollar strike price range are all pricing in premiums of 30-50%, meaning the price of GME needs to go below half the strike price before it pays out.
In other words, best case scenario is GME drops from 300 dollars to 10 bucks and then you make 100% on your money. That's not really a nice profit for the risk you're taking.
- spacedome 6y agoYou can make big money trading the volitility, if you get really lucky. The price of some puts I looked at went up 500%+ during the drop today. Would not try this personally lol
- Kranar 6y agoShort term puts yes, long term puts no. For short term puts you pay (or are rewarded) in volatility, for long term puts you pay (or are rewarded) in premium. At any rate, my point isn't you can't make money off this, it's that there's no easy arbitrage opportunity happening on GME. It's basically trading like a volatile stock would trade, and it's being priced as such. Whatever free or easy money you think there is to be made on GME is likely just a coin toss.
- spacedome 6y agoI meant doing day trades of long term puts, but yes I agree any money here is a huge gamble.
- eloff 6y agoYeah, this has sort of dawned on me a few days after I made the trade. I don't think I'd take that risk on again if I had the option.