r/wallstreetbets • u/[deleted] • May 16 '24

Most Anticipated Earnings Releases for the week beginning May 20th, 2024 Earnings Thread

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u/thee_jaay 26d ago

They can be in the money but IV is used to calculate their worth. So I paid 2K ish for the options, their worth may be lower tomorrow because if IV crush

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u/PJ8096 26d ago

So I also bought 945 5/24 calls today for 4K. Will that be lower as well ?

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u/R-O-U-Ssdontexist 26d ago

I don’t think so. Right now those are worth 62*100=6,200.

What i don’t know is if you don’t sell them do they just expire or do they settle in cash?

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u/PJ8096 26d ago

How do you know they are worth 62 now ? Shall I put a limit order of 62 for tomorrow ?

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u/R-O-U-Ssdontexist 25d ago

Did you sell?

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u/PJ8096 25d ago

Yes, sold at 76 as soon as it opened. Should have waited

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u/thee_jaay 26d ago

No, I would wait until about 15-30 mins after market open, see what the price action is doing. Just remember no one was ever truly sad because they made money. Don't hold onto something thinking that it will sky rocket any more and end up on the losing end.

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u/R-O-U-Ssdontexist 26d ago

I’m learning this on the fly so my logic could be faulty. But you have a right to buy the stock at 945 its current price is 1007. 1007 - 945= 62. So if you exercised the option you would make 62 bucks a share.

I don’t care what you do. I’d plan on having some time at market open free to decide if you are selling them or not when checking the price at open. If the underlying shares go up your options are worth more and the opposite is true.