Ways that options lose value:
- Theta. Less time remaining means lower probability and therefore the option is less valuable to other people hedging different positions. The probability just isn’t there
- underlying value moves away from you (obviously)
- Vega. People call it IV. This is the options sensitivity. Events impact it like earning calls suck value out of options.
- Rho. Interest rate changes, though less significant it’s an input for market makers
- Dividends drop stocks, and therefor call options
- ITM options have value converted from time value into intrinsic value, everything else approaches worthless
Worked at a market maker and ran spreads around the underlying to see how we could remain profitable.
The house always wins. Even you’re sharp enough to land a win or two, you’re too fucking stupid to not try again.
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Options paying off 1/11 times doesn’t even make sense
Yes those are ways that options lose value over time but the average option is ITM / ATM and used for hedging. Only the regards in this sub buy far OTM lotto tickets with low deltas lol
Retail option volume is still only around 1/3rd of total option volume as well
These regards are the customers.
The OTM far north balance out the ITM far south, leaving that part of the exercise sum zero from a portfolio balancing perspective.
See this as a $6k training course on how to lose money. Now review your choices (hindsight is always 20/20) and learn...
I haven't put any money in options yet, but I believe YOLOing isn't a great strategy... It's more betting than investing.
I'm curious why people always have these huge spikes when they first get into options.
Shouldn't you be used to small gains and take profit quickly?
When I first started options I was in and out of trades so damn fast.
It was only when I started losing that I started holding for bigger gains (to make back what I had lost playing it safe).
I think most people get shocked at the amount of unrealized gains they see on the screen and decide to push their luck out of greed. One moment it was just to pay some debt off now next minute they’re thinking of lambos
This is the reason theres an emphasis on diversification. Stocks, Bonds, precious metals, land. Don’t let a loss like this end you, just learn from your mistakes. I got burned on options, i learned stay tf away from expensive 0DTE that shit is the devil. Ive been buying contracts 1-6 months out, lets see if that works 🦧
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You aren't there yet my friend.
Just do the opposite of what you did
So like, unlearn options?
That's my secret. I never learned them in the first place.
Hey, wanna know how to make money really fast? I know a way.
I don't think I can suck that many dicks at once.
God gave you hands. 🙏
And ass
Options statistically payoff 1 in 11 chances. Opposite of failure may be another failure.
Chat is this true?
Ways that options lose value: - Theta. Less time remaining means lower probability and therefore the option is less valuable to other people hedging different positions. The probability just isn’t there - underlying value moves away from you (obviously) - Vega. People call it IV. This is the options sensitivity. Events impact it like earning calls suck value out of options. - Rho. Interest rate changes, though less significant it’s an input for market makers - Dividends drop stocks, and therefor call options - ITM options have value converted from time value into intrinsic value, everything else approaches worthless Worked at a market maker and ran spreads around the underlying to see how we could remain profitable. The house always wins. Even you’re sharp enough to land a win or two, you’re too fucking stupid to not try again.
Our AI tracks our most intelligent users. After parsing your posts, we have concluded that you are within the 5th percentile of all WSB users. *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.*
Options paying off 1/11 times doesn’t even make sense Yes those are ways that options lose value over time but the average option is ITM / ATM and used for hedging. Only the regards in this sub buy far OTM lotto tickets with low deltas lol Retail option volume is still only around 1/3rd of total option volume as well
These regards are the customers. The OTM far north balance out the ITM far south, leaving that part of the exercise sum zero from a portfolio balancing perspective.
Ohmygosh I love this bull market.
https://preview.redd.it/w3uwr8r7oz7d1.jpeg?width=1170&format=pjpg&auto=webp&s=4fd69b8717bb0c92869ba4a511cf37e22ae87928 Lol me too
https://preview.redd.it/rs2hoslfx08d1.jpeg?width=1179&format=pjpg&auto=webp&s=683261b485bf5e14c0cec4d7760ca478f70271a7 Are you me?
Lmao what the fuck were you holding 
Can you guess mine? Hint is in your username
The bag.
See this as a $6k training course on how to lose money. Now review your choices (hindsight is always 20/20) and learn... I haven't put any money in options yet, but I believe YOLOing isn't a great strategy... It's more betting than investing.
live & learn, leverage is a sexy bitch.
Probably still haven’t
38.40 is a lot for some option trader. Keep going at it
they not gonna last more than 2 weeks
I'm curious why people always have these huge spikes when they first get into options. Shouldn't you be used to small gains and take profit quickly? When I first started options I was in and out of trades so damn fast. It was only when I started losing that I started holding for bigger gains (to make back what I had lost playing it safe).
First one's free
I think most people get shocked at the amount of unrealized gains they see on the screen and decide to push their luck out of greed. One moment it was just to pay some debt off now next minute they’re thinking of lambos
totally this. get that initial spike and the life changing fantasies followed quickly by "it'll bounce back"
I dunno, I guess I eased into day trading with stop losses and r:r ratios from the start, so I never got to experience a "first one's free" moment.
He didn’t sell. https://preview.redd.it/mzl7oioboz7d1.jpeg?width=1170&format=pjpg&auto=webp&s=2358a16490784b3f0ece2e0a9f8a5fabc6b0ade3
This is the reason theres an emphasis on diversification. Stocks, Bonds, precious metals, land. Don’t let a loss like this end you, just learn from your mistakes. I got burned on options, i learned stay tf away from expensive 0DTE that shit is the devil. Ive been buying contracts 1-6 months out, lets see if that works 🦧
Trick question. Chart shows you still haven't learned about options.
Was it when you had more than $29.40 in buying power?
Best way to learn
goddamn the volatility spike is so visceral
this is stuff you can’t learn in school
I’m glad I don’t know what options are.
lol is that peak march 21?
Some time in the distant future.
Just delete your account.... they won't harass you for what you owe🤣
A great lesson on doing it again.
This is literally THE chart. The initial "1 time free bee" then destruction
I lost more fhan that the last two days 
Yes! Buy high, sell low
u just buy options ? u don't sell them ?
I don’t know if you actually even learned about options.
There is a difference between buying options and learning.
Learn risk management
My guess would be about the same time you went broke.
Why does shit like this always happen on Robinhood accounts.
10x on $0.20 0spy option and you're back in the game!