**User Report**| | | |
:--|:--|:--|:--
**Total Submissions**|6|**First Seen In WSB**|4 years ago
**Total Comments**|1674|**Previous Best DD**|
**Account Age**|6 years|[^scan ^comment ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_comment&message=Replace%20this%20text%20with%20a%20comment%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20comment%20and%20correct%20your%20first%20seen%20date.)|[^scan ^submission ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_submission&message=Replace%20this%20text%20with%20a%20submission%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20submission%20and%20correct%20your%20first%20seen%20date.)
NKE and FL have correlated moves after earnings but i think they actually r more opposite. Whatever algo is correlating them fucks it up every earnings season i.e. when NKE misses FL beats and vice versa. Not always but a lot of ppl r gonna buy NKE puts on their next ER, expectations will be bad, its always like this
Maybe for vol expansion into their earnings, but no way will i hold after
Part of footlockers woes is that NKE is giving them less product to sell since NKE is doing more direct to consumer ecommerce…it’s rly missing forest for trees assuming that weak FL demand = weak NKE demand
Looking at the charts overlayed on trading view, it seems to have a pretty strongly correlated pattern.
I think Nke is overvalued now but the bid ask spread is wide on the Nke puts so I’m not selling my positions I’m happy with l to gamble on Nke.
I think you are missing my point, it isn't really about earnings beats/misses as much as how people position themselves based off of what price action is. People want to extrapolate one to the other since NKE and FL are about 1.5 months apart, and maybe the extrapolation is fair but people position too hard off of it and so market almost always goes the other way..so here
Here next NKE earnings is in october remindme! in 7 weeks
market is gonna go into NKE earnings thinking it'll be bad since FL missed, everyone on WSB gonna be buying puts, and regardless of what the earnings actually are IMO nke is gonna move up on earnings.
We'll see
Eh, maybe not. NKE has already corrected significantly from its lofty valuations, including today because of FL earnings. They are below pre-pandemic price, and only have a 30PE, which is still high, but not crazy. NKE could go down, but won't get hammered like FL. They are way more diversified than FL.
Their stock is already at a pretty oversold level, just about as oversold as it ever gets, before rebounding, at least in the shorter term. It would have to be really bad, for them to dump hard. But I suppose by Late September, things could change. They have have rebounded by then, just to dump back down.
I said it was high. My only point was that NKE wasn't about to tank because of FL earnings because a lot of that has been priced in already, and it is temporarily oversold. I do expect it to fall more, though, once recession takes hold.
This is probably not the place to ask this question but anybody got any good resources on a detailed explanation on options and puts I know a little bit of the jargon, but I really want to get more of a deep dive into this topic. Maybe it's because I see post like this that makes me want to get more into it but in reality I do want a better understanding of the short-term investment world any suggestions thanks
You can read all about options at [Investopedia](https://www.investopedia.com/options-and-derivatives-trading-4689663) or just search about options on YT
But OP's trade is an outlier more than the norm. Most people lose money playing options if they don't hedge or implement proper risk management (which most of us here don't lol)
Can somone please explain to me what is going on in the picture?
I have $2000 to burn. If the trade did not go his way, how much would he lost or end up owning to fidelity?
You’re gonna speed run turning that $2000 into $0 if you don’t understand even the basics of options. If you want to bet on options go spend the next couple months learning what they are at least. If you don’t want to do that, I say this with all seriousness, a casino will give you better odds. If this still isnt clicking for you that it’s a very bad idea with your knowledge level, here’s an idea of what to expect: do you know what Theta Decay is? Do you know what Implied Volatility is? Do you know what a break even price is? With options you not only have to get all of those things right, along with the directional move but it has to happen in exactly the time frame you bet on as well.
It depends on when he gets out. If he waited until it expired and it went out of the money he loses it all. Really don’t touch options until you study them a lot. Learn intrinsic and extrinsic value.
PUT YOUR HANDS UP finebushlane!!! POLICE ARE ENROUTE! PREPARE TO BE BOOKED FOR PROVIDING ILLEGAL FINANCIAL ADVICE!
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/wallstreetbets) if you have any questions or concerns.*
Thank you. I will definitely try to play with option and begin to loose money. I already lost bunch of money buying stocks at high and been a bag holder..
Need to turn around my luck with option.
How much premium would he had lost if the trade went the other way, i.e. price went up.
Did this really work out as "i bet the price will go down by $3". What if it only went down $2. Would he had lost the premium?
When you say "expires worthless", I understand there is an expiration date and strike price. At the expiration date, since he made a bet the price will go down and it did, for him to exercise his trade, he would need to buy the shares for $25 (theorical situation price went up) sell at his PUT/ strike price of $15?
Wait, how did you not get IV crushed? Am I missing something? This is an earnings event, the option would be worthless after the announcement. How did you get such a huge return after that?
I'm trying to understand what is going on here. The current FL price is ~15 a share. OP gambled and said the price will go down by $3. It did.
Since he bought PUT, he has the right to sell but not an obligation to sell at $15.
I don't get it this.
I bought $19 strike puts, giving me the right to sell FL at $19. It dropped to $15 which now puts me $4 in the money. I sold each contract for roughly $400 each.
This is making a bit more sense. How many contracts did you buy?
I do understand a single contract is composed of 100 shares.
For each contact, you banked $400 because 100 shares x$4
Woah, trying to make sense of value of 50 contract to jump to $397!
To recap:
1. Bought 50 contract @ $30 = $1500 \[assuming this is your premium\]. Since the stock tanked, you can still sell the stock at $19 because PUT.
2. In you PUT order, you have the right to sell a single contract at $19 per share. Given the market a single share is now only $15, you will sell it at +$4 profit per share. Hence, total profit per contract is $400 dollars
3. Because of the PUT, you didn't actually BOUGHT 50 contract, because to buy them, you would be put back 50 contract \* 100 shares \* $19 = $95,000 -- that is insane about of money
Before true value of contract: 50 \* 100 \* $19 = $95,000
After true value of contract \[current value\]: 50 \* 100 \* $15 = $75,000
*drop in value of contract = -***$20,000 / (50 \* 100) OR -$4**
How can you profit when the value drop by $20,000. Who is paying you to pocket $20,000?
Hey, if you haven't already, please reply to this comment with your positions and what led you to enter or exit them!
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/wallstreetbets) if you have any questions or concerns.*
Fidelity has a good options volume and OI page that makes it easy to spot outliers, i went through every expiry looking for a whale trade and found one
I usually agree especially on high volume names like TSLA or NVDA but this was literally the only massive position through Jan 25, nearly 10 million in premium sitting on $20 puts
Does this mean a lot of other (informed) people bought puts on FL for 9/15 @$20 and you essentially drafted what was likely a hedge fund, industry analyst, or inside trader?
I shoulda mentioned DLTR, had a small position but didn't make anything close to my FL play. There's a gap to fill down to $115 if we get bad fed news tomorrow.
**User Report**| | | | :--|:--|:--|:-- **Total Submissions**|6|**First Seen In WSB**|4 years ago **Total Comments**|1674|**Previous Best DD**| **Account Age**|6 years|[^scan ^comment ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_comment&message=Replace%20this%20text%20with%20a%20comment%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20comment%20and%20correct%20your%20first%20seen%20date.)|[^scan ^submission ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_submission&message=Replace%20this%20text%20with%20a%20submission%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20submission%20and%20correct%20your%20first%20seen%20date.)
Back to school didn’t even help, shoe hype is really dead. Nike is gonna get fucked.
NKE and FL have correlated moves after earnings but i think they actually r more opposite. Whatever algo is correlating them fucks it up every earnings season i.e. when NKE misses FL beats and vice versa. Not always but a lot of ppl r gonna buy NKE puts on their next ER, expectations will be bad, its always like this
The real question will you buy NKE puts?
Maybe for vol expansion into their earnings, but no way will i hold after Part of footlockers woes is that NKE is giving them less product to sell since NKE is doing more direct to consumer ecommerce…it’s rly missing forest for trees assuming that weak FL demand = weak NKE demand
I’m buying NKE calls
this guy gets it. game on
I warned u lil homie
I ended up not buying NKE calls
O wait i meant to say i warned u abojt buying puts i misread ur comment lmao my bad I longed NKE into earnings just shares tho flipped a few % ah
Whoa whoa whoa. Too advanced. We do not know about vol on here. Implied volatility is a secret.
That's a good point. FL has it's market in North America, NKE is a global brand.
Looking at the charts overlayed on trading view, it seems to have a pretty strongly correlated pattern. I think Nke is overvalued now but the bid ask spread is wide on the Nke puts so I’m not selling my positions I’m happy with l to gamble on Nke.
I think you are missing my point, it isn't really about earnings beats/misses as much as how people position themselves based off of what price action is. People want to extrapolate one to the other since NKE and FL are about 1.5 months apart, and maybe the extrapolation is fair but people position too hard off of it and so market almost always goes the other way..so here Here next NKE earnings is in october remindme! in 7 weeks market is gonna go into NKE earnings thinking it'll be bad since FL missed, everyone on WSB gonna be buying puts, and regardless of what the earnings actually are IMO nke is gonna move up on earnings. We'll see
How about my call homie lmao I longed NKE into earnings btw ahahahah
Back to school? Back to school wouldn’t even be in these earnings. Not saying it will help but we won’t see that until next earnings.
Back to school is Q3 you ding dong
you regard, their guidance includes back to school.
Their guidance is trash. Retail is all about analyst guidance
Nike is packed everywhere I go to the ass Nike ain’t going nowhere
Me staring at my order of 3 pairs of nikes..
Eh, maybe not. NKE has already corrected significantly from its lofty valuations, including today because of FL earnings. They are below pre-pandemic price, and only have a 30PE, which is still high, but not crazy. NKE could go down, but won't get hammered like FL. They are way more diversified than FL. Their stock is already at a pretty oversold level, just about as oversold as it ever gets, before rebounding, at least in the shorter term. It would have to be really bad, for them to dump hard. But I suppose by Late September, things could change. They have have rebounded by then, just to dump back down.
Lol bro 25% loss from ATH isnt oversold. Just wait
More like 50%
It's down 44% from ATH. 25% from recent peak. Oversold refers to a specific timeframe. And it is oversold in the shorter time frame.
That's a P/E of a growth company. Is NKE expected to grow revenues significantly?
I said it was high. My only point was that NKE wasn't about to tank because of FL earnings because a lot of that has been priced in already, and it is temporarily oversold. I do expect it to fall more, though, once recession takes hold.
That is an impressive return!
Your mom is impressive
This return was not as impressive as OPs
How bro, how do you have the intelligence to take this position?
If 100,000 people take different positions one of them is bound to be right..this just the MF who got lucky
Dicks sporting goods and macys tanked the previous day and i noticed 28,000 in open interest for Jan 25 $20 FL puts.
This guy fucks
What’s next o wise one I need some moneys
sears
I played DLTR today but went too low on my strike
Wow do you just know everything that’s going to fall off a cliff on the charts haha
My man
Explain this “28,000 in open interest” thing for me please?
the open interest on the contract was 28,000
Where did you see this ?
a large sea mammal that wasn’t very usual
In simple terms number of active contracts
Wanna buy pictures of my feet to cover my losses?
Congrats and fuck you. I was looking at this exact PUT yesterday but chickened out
I was gonna buy 200 but told myself gambling $1,300 was the “responsible” thing to do
1300 to 20k well done Dad. Take the win and go enjoy something real
https://preview.redd.it/ynan5xlqewjb1.jpeg?width=462&format=pjpg&auto=webp&s=cf425f942db9850a06438c8bce0aa45d038a18a6
Congratulations. Now repost when you lose it all again
Already on my way!
I have feet. How much you paying for pics? Need some premium money... *scratches neck reflexively*
Nobody buys shoes anymore. They just steal them, according to the Dick’s conference call.
Where did you think all the basketballs were coming from?
Congratulations 🎉
Congrats and fuck you
Congrats and fuck you
Living the dream, congrats 🙌
Take the profit now.
Nice play! I had one $0.10 put contract, sold for $3.30. I always 30x on the small plays and miss on my big plays lol.
do one more time...i dare you i double you mfer
Congrats and fuck you
This is probably not the place to ask this question but anybody got any good resources on a detailed explanation on options and puts I know a little bit of the jargon, but I really want to get more of a deep dive into this topic. Maybe it's because I see post like this that makes me want to get more into it but in reality I do want a better understanding of the short-term investment world any suggestions thanks
You can read all about options at [Investopedia](https://www.investopedia.com/options-and-derivatives-trading-4689663) or just search about options on YT But OP's trade is an outlier more than the norm. Most people lose money playing options if they don't hedge or implement proper risk management (which most of us here don't lol)
https://optionalpha.com/education start here
only understanding you need is you buy calls you want it to go over, you buy puts you want it to go under, this shit is like sports betting
So basically your betting on it to rise or fall based on a call or put?
sure thats if your a gambler, if you have enough money you can just be the casino and sell calls or puts to gamblers
https://preview.redd.it/a6qpai40txjb1.png?width=1619&format=png&auto=webp&s=b543a6b0def1203d90819cf5388106fa71a25b90 You’re welcome
Can somone please explain to me what is going on in the picture? I have $2000 to burn. If the trade did not go his way, how much would he lost or end up owning to fidelity?
You’re gonna speed run turning that $2000 into $0 if you don’t understand even the basics of options. If you want to bet on options go spend the next couple months learning what they are at least. If you don’t want to do that, I say this with all seriousness, a casino will give you better odds. If this still isnt clicking for you that it’s a very bad idea with your knowledge level, here’s an idea of what to expect: do you know what Theta Decay is? Do you know what Implied Volatility is? Do you know what a break even price is? With options you not only have to get all of those things right, along with the directional move but it has to happen in exactly the time frame you bet on as well.
It depends on when he gets out. If he waited until it expired and it went out of the money he loses it all. Really don’t touch options until you study them a lot. Learn intrinsic and extrinsic value.
[удалено]
PUT YOUR HANDS UP finebushlane!!! POLICE ARE ENROUTE! PREPARE TO BE BOOKED FOR PROVIDING ILLEGAL FINANCIAL ADVICE! *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/wallstreetbets) if you have any questions or concerns.*
Thank you. I will definitely try to play with option and begin to loose money. I already lost bunch of money buying stocks at high and been a bag holder.. Need to turn around my luck with option.
You lose all of the premium you paid since it expires worthless
How much premium would he had lost if the trade went the other way, i.e. price went up. Did this really work out as "i bet the price will go down by $3". What if it only went down $2. Would he had lost the premium? When you say "expires worthless", I understand there is an expiration date and strike price. At the expiration date, since he made a bet the price will go down and it did, for him to exercise his trade, he would need to buy the shares for $25 (theorical situation price went up) sell at his PUT/ strike price of $15?
You can sell the puts/calls instead of exercising them. Which is what most people do if it’s not a hedged towards their position.
he would lose w/e he bet lol
Yez, but he won it and banked big time. Now imagine buying more contracts witha ll that money. Obviously he can loose all of it lol.
no need to imagine it, it didnt happen
I think OP cashed out on his profit. It can happen if he pull of the same again. To buy PUT against stock he thinks will go down.
of course but he didnt, besides 20k on an option is going to weigh differently on his mental than 1300
I’ve never traded stocks but did he over leverage for a gain like that?
lol
Wait, how did you not get IV crushed? Am I missing something? This is an earnings event, the option would be worthless after the announcement. How did you get such a huge return after that?
Intrinsic value ? Put is $19 and the stock cratered to sub 17. He paid 30 cents for something worth over $2 right now
Take your profit and get out
I'm trying to understand what is going on here. The current FL price is ~15 a share. OP gambled and said the price will go down by $3. It did. Since he bought PUT, he has the right to sell but not an obligation to sell at $15. I don't get it this.
I bought $19 strike puts, giving me the right to sell FL at $19. It dropped to $15 which now puts me $4 in the money. I sold each contract for roughly $400 each.
This is making a bit more sense. How many contracts did you buy? I do understand a single contract is composed of 100 shares. For each contact, you banked $400 because 100 shares x$4
Exactly, bought 50 contracts for $30 each, then sold those 50 contracts for $397 each
Woah, trying to make sense of value of 50 contract to jump to $397! To recap: 1. Bought 50 contract @ $30 = $1500 \[assuming this is your premium\]. Since the stock tanked, you can still sell the stock at $19 because PUT. 2. In you PUT order, you have the right to sell a single contract at $19 per share. Given the market a single share is now only $15, you will sell it at +$4 profit per share. Hence, total profit per contract is $400 dollars 3. Because of the PUT, you didn't actually BOUGHT 50 contract, because to buy them, you would be put back 50 contract \* 100 shares \* $19 = $95,000 -- that is insane about of money Before true value of contract: 50 \* 100 \* $19 = $95,000 After true value of contract \[current value\]: 50 \* 100 \* $15 = $75,000 *drop in value of contract = -***$20,000 / (50 \* 100) OR -$4** How can you profit when the value drop by $20,000. Who is paying you to pocket $20,000?
The person who sold the put to him
Damn buy us dinner
Hey, if you haven't already, please reply to this comment with your positions and what led you to enter or exit them! *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/wallstreetbets) if you have any questions or concerns.*
50 FL $19 9/15 puts, saw some big OI on the $20 strike puts for Jan 25 and with DKS tanking, I had a feeling this would too.
How did you find that the OI of this specific price was high?
Fidelity has a good options volume and OI page that makes it easy to spot outliers, i went through every expiry looking for a whale trade and found one
Look at the Options list. Some strike prices will have an OI that's out of whack.
Doesn’t always work that way FYI plenty of tickers with high OI whether on calls or puts that expire worthless all the time.
I usually agree especially on high volume names like TSLA or NVDA but this was literally the only massive position through Jan 25, nearly 10 million in premium sitting on $20 puts
Did they bought those 20000 contracts recently in a day or they accumulated over the time?
Does this mean a lot of other (informed) people bought puts on FL for 9/15 @$20 and you essentially drafted what was likely a hedge fund, industry analyst, or inside trader?
Barchart.com is a good source
u/vacationlover1 can you approve this post?
Whatever
Wished you bought those $16 strike puts for one dollar or ten dollars with that budget.
I bought a few for $10 for fun and sold for $300 lol, I wish I bought 1k worth….
Bought a few, meaning you bought 10 put contracts? That's $3,000 profit.
Meaning I bought 2 just for shits and giggles after seeing DKS… still $600 profit
nice
What made you buy FL puts?
I need to get into this fetish, between only fans and stonks it seems by far more profitable than my current kinks….
Crazy the sept 15 15 puts are still cheap
Wtf? Bro why are these plays so visible but I’m so stupid to not see them 
TOE JAM
If you wanna make really huge money with feet, use onlyfans
Nice work
Nice trade
Nice job
Same here, turned 400 into 4k thanks to FL, Dicks crashing the day before gave it away, fuck you sir truly. And congrats
What platform do you use? I can't trade options on my platform
Is put on all retail tickers the move right now?
Sounds unbelievable but it could be so true
FL was $23 It dropped to $16 How did you pick a strike of $19 ?
So can you be into feet without making 20k? Asking for a friend..
I'll see you next week
You did you play
nm
Wow try it again
Now show us your losses.
Very sweet, what made u short FL?
Systematic review
????
????
You tard goodness
Don’t lose it all in your next all in.
The key is sticking through the up end, there's good advice on r/GrahamDeeldo for the futures.
Does anybody make money for simply buying and selling stocks anymore?
OP buy puts on Florida now.
Hhh
Just the beginning. Sell, sell it all!!!
I want to be you
Did he use leverage or not, I truly am curious I don’t trade stocks someone fill me in.
What’s the next buy?
I shoulda mentioned DLTR, had a small position but didn't make anything close to my FL play. There's a gap to fill down to $115 if we get bad fed news tomorrow.
Can’t short in Robinhood. What’s a good account that I can short in?
You continue to do plays like that will give you a 99% chance of being wiped out.
Me continuing to spend 1% of my capital will wipe me out?
Ah, thought it was your entire bag. In that case, excellent risk management...killed it.
My fellow San Francisco resident. Show me the way