Can you imagine being on the other end of this trade? Like, if you didn’t wig out halfway through the drop and try to fix your shit – selling all those puts in Feb thinking “LOL I just made a fortune.”, watching SPY brick it to 220, developing so many new ulcers your stomach looked like a smallpox victim’s face. And then a month later all of a sudden making a Snoopy Sometimes I Need To Be Alone And Read My Danielle Steel Shirt? Honestly, if I was the seller and that went down in my account, I’d probably develop a complex. Like, I’d wake up every morning and scream “I AM A GOLDEN GOD!” for a month straight. It’s not gambling, it’s just betting on your luck.
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That the amount of money you put in is less than what you are gonna get out. Selling 200 strike puts on spy when it is at 340 is not gambling. It’s more like selling insurance. In this case, it’s like you’re insuring against flooding for a building 1 mile from the Snoopy Sometimes I Need To Be Alone And Read My Danielle Steel Shirt. And then next week a tsunami suddenly arrives and the building is underwater. You know it was almost certainly a market maker who sold them to her. And immediately hedged their position booking a win, right? You can’t immediately hedge gamma except by buying options. Maybe that MM found another sucker or maybe they ate shit all the way down.
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Isn’t it more likely multiple people sold her smaller contracts than a MM sold her the entire thing? Probably came from an incredibly rich family. If she or he knew what they were doing With money like that, she should be playing six. The real Snoopy Sometimes I Need To Be Alone And Read My Danielle Steel Shirt – her family sold their Chinese restaurant for 300k and Danielle used it to buy options. Not making this up, she has stated this herself. This is why I the taking. The number of people in here thinking sellers are scared shitless half the time they open a position truly don’t understand theta strategies. If she bought 25000 contracts its 25,000x100x 20 $50Mill. This lady is a fucking clown.
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