Richard: great work as always and good intuition on the Put Sales. Per Spotgamma's 2021 postgame analysis of the Sneeze, the late-game of the Sneeze (Post Jan 22) was driven on the options side of things much more by Short Put volume than it was by long Call volume, since this allowed institutions to be long the price, but short volatility. The December price action up to Jan 22 was primarily tied to Long Call bets (Long price and long volatility), but after this date Call Volumes decreased substantially and per the SEC report were primarily be purchased by institutions short $GME to cover their positions in the absence of the availability of shares. Keep up the outstanding work and God Bless you, my friend!
Finally, I was worried you wouldn't post today, happy Tuesday Richard and get well soon! Also, that was my post about the Significance of Chicago Exchange, I got the inspiration for the post from you so thank you.
Great researching. Both of you. Thanks for the insights and dedication. Exciting times to be in GME, we went through hell to get here, may we all be rewarded for our patience. RC isn't about to let us down neither. Three geniuses in my opinion are involved in this stock. RC,LC,& of course, RK, sorry Richard, you thought it was you didnt you? haha.
A Reddit sub pointed out that when the Chicago exchange daily volume % is high on a day, like 12%+ as it has only been a few times the past few years,... (up from its usual .01%) GME goes up the following 10 days or so on average 150%.
Glad you mentioned the concept of selling puts. I’ve had a theory that this has been one of RK’s tactics all along. Selling deep ITM puts with the intention of getting assigned. Getting assigned a lot of shares at a price point higher than market creates upward price pressure especially in low volume. Then all you have to do is buy calls into your expiry. Idk I don’t know anything but seems like a bullish strategy with no downside if you’re buying shares anyway and truly believe they’re undervalued. All you need is a lot of upfront capital. The only thing the market makers can do if they can’t/don’t want to deliver the shares is raise the price past the put strike so that all you get is a premium which is still a win. “You’re not actually going into an asteroid field? They’d be crazy to follow us.” “PUT all your hands where my eyes can see.”
Very interesting play indeed. Here is a scenario run by Perplexity. If you are very confident in the play, it has very good upside: In this scenario, let's break down the trade and its potential outcome: Initial trade: Stock price: $20 Sell 200 ITM puts at $50 strike Capital required: $1,000,000 (200 contracts * 100 shares * $50 strike) Premium received: The premium for deep ITM puts would be close to the difference between the strike price and the current stock price, minus a small amount for time value. Approximate premium: ($50 - $20) * 200 * 100 = $600,000 Using premium to buy calls: Buy $20 strike call options with the received premium Number of contracts depends on the price of these ATM calls Stock moves to $30: For the short puts: These puts are still ITM, but less so The value of the puts would decrease to approximately ($50 - $30) * 200 * 100 = $400,000 Unrealized gain on puts: $200,000 For the long calls: These calls are now $10 ITM Their value would increase significantly, likely to around $10 * 100 shares per contract, plus some time value The overall position would likely be profitable, as the gain on the calls would outweigh the remaining liability on the puts. However, the exact profit would depend on the number of call contracts purchased and the specific option prices, which are influenced by factors like implied volatility. It's important to note that this strategy carries significant risk. If the stock price had dropped instead, both the puts and calls could lose value, potentially leading to substantial losses.
@@RichardNewtonit’s risky unless you could accurately predict when volume would be low enough to ensure that your put assignment will move the price. Also all of the hedging that would go on between the puts and the calls would swell on its own I think. Again I’m not an expert by and means, just a theory, but this theory, to me, explains the Tenet meme.
Reminds me of the dune meme of him riding the worm. He needed two hands to control the worm and ride it into glory....maybe you are correct. @@cdark64
I've been zen for so long my guy. I hate buying into any hype, but when things get interesting. I'm glad you're still here. Reminds us all we're not alone.
I have also observed what you are experiencing with the browser freezing with other charts as well, like Fidelity and Coinbase. It starts when too many elements indicators and drawing elements are added. For example, if you start with fresh one and add only 5 moving averages, generally things are fine. Add 5 more and zoom out so more data is needed and the chart starts dropping data in the middle of parts giving you invalid feedback and the periodic freezing begins. The only two ways I have worked around this rapidly is to duplicate tabs or eventually I ended up developing my own charting with locally hosted data.
i've had i similar thought (i think) to when you said maybe selling puts pushes the stock up. the options chain is often leaning heavily towards OTM calls, and yes that could lead to a gamma ramp, but it also seems to put max pain at a lower price level. therefore, price gets pushed down until MMs lose control, but call buyers kinda force them to keep the price down
Newton-Sensei, I want to continue to express my gratitude for all your positive messaging and attitude. It has truly helped me through a rough time with losing my shift at work, and the deteriorating health of loved ones. I think I have the job situation more or less worked out now, and I'm hopeful that my family members will improve health-wise. Listening to your videos is an integral part of my day, trying to start with the right mindset. It seems strange since I'm not affiliated religiously, I'm not a Pokemon fan (though I did play WoW and MTG for most of my life), and I'm a low-skill investor, but your videos have absolutely been the right fit for my mornings. I appreciate your work and dedication, and positive energy. -Jonathan
When DFV posted the Joker meme holding the cat mask , the DD was suggested he was in Chicago, or atleast where it was filmed. Now we are seeing large orders come in from Chicago, the two are linked for sure??? Re occurred today also
Looks like we got a second day in a row with big Chicago volume. Could this possibly be related to a certain kitty taken shares for delivery? It's on the lit market so perhaps if a person recalls some faux brokerage "shares" now the broker is having to go buy a whole bunch of actual shares. This could get exciting.
When DFV posted the Joker meme holding the cat mask , the DD was suggested he was in Chicago, or atleast where it was filmed. Now we are seeing large orders come in from Chicago, the two are linked for sure???
Hi Richard, great video as always. I think if you consider selling puts as bullish (which I do agree with), you need to also consider that there could also be a lot of calls being sold which would be bearish.
T+3 may be Friday, but does the market closure affect this? Is this even customary, the closing of markets for the passing of a former president? I don't recall seeing this before, but I haven't always paid attention.
It's amazing to see your prediction of 32.50 meanwhile I am looking at the ticker sitting at 33.85 with 1 hour and 12 minutes left at the end of the market. Insanity. Brace yourselves my friends.
Richard, throughout the past runups, how many days after Chicago exchange increase percentage like past two days, did it take to run, and how many days ill that run stopped
"Why do you still use Yahoo Finance?". I totally get your sentiments towards this question. Once you've got your stuff built up on a piece of tech, it's so uncomforting to set it back up somewhere else.
richard, haha, i am aware of DFV's love for cats, but is the "cat ears formation" a real thing for technical analysis or is it just a DFV meme? hahahaha i'll take any hype lets go!!!
KM has me blocked on X and I have no idea why 😂 I don’t think I’ve ever interacted with him and I’m generally a really positive person so 😭🤷♂️ Micheal Burry has me blocked too. Maybe just the word Ape is enough to throw people off 🤦♂️🤷♂️
Love your testament about walking thru dark times, and Jesus met you there. His Grace is overwhelming. All we have to do is ask. Great way to start the day being Thankful!! And GME is rocking up!! Thanks Richard for being you!!
Tomorrow when the NYSE and CHX are closed we Germans will light up the Frankfurt Exchange!! :D Muricans can probably also buy via the Frankfurt Exchange? nfa 😂
Nice!!! I have really fallen in love with selling puts lately. We'll see over time how I feel about it, but seems like a really great trade to me most of the time. Thanks DD!
Hi Richard, we all love you so much and just wanted to say if you need a few days to recover and sleep or anything like that please do that. Even though I know I will be itching to see you again, I understand respect that you are human and need some time to rest and chill! Anyway man, love you dude and thanks for your dedication.
Richard, I have been screaming all morning at anyone who will listen. The requel is June 1 - June 18 (January 1 - January 18) Go look at the cats tweets June 1 - June 18. Time Travel.
Hey Richard, sorry to message on your board here again but I don't think I ever asked this of you and wanted to ask if you could please pray for me and my family. Thank you.
Richard buy The Midrash Says by moshe weissman . Commentary on the first five books of the Bible so you can get a Hebrew perspective. Jesus understood the Bible from that perspective.
![Felix "Unfair" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/Oswujxm2Ag0/mqdefault.jpg)
![Noob To Max With DRAGON REWORK In Blox Fruits [FULL MOVIE]](http://i.ytimg.com/vi/LnBMOinoOvA/mqdefault.jpg)
Richard: great work as always and good intuition on the Put Sales. Per Spotgamma's 2021 postgame analysis of the Sneeze, the late-game of the Sneeze (Post Jan 22) was driven on the options side of things much more by Short Put volume than it was by long Call volume, since this allowed institutions to be long the price, but short volatility. The December price action up to Jan 22 was primarily tied to Long Call bets (Long price and long volatility), but after this date Call Volumes decreased substantially and per the SEC report were primarily be purchased by institutions short $GME to cover their positions in the absence of the availability of shares.
Keep up the outstanding work and God Bless you, my friend!
God bless you too and likewise! Thank you for that!! LET'S GOOOOOOO. GameStop. XD
You’re right Richard we should try to temper our expectations..
LETS GOOOOOO! 🚀🚀🚀
the CHX lighthouse is showing us the way
😎
G'mornin Richard. Late upload but that's no problem! That means I get to listen to RN when the market opens 😊
Thank you
:D
Finally, I was worried you wouldn't post today, happy Tuesday Richard and get well soon!
Also, that was my post about the Significance of Chicago Exchange, I got the inspiration for the post from you so thank you.
amazing job!
Great job!!!
Great researching. Both of you. Thanks for the insights and dedication. Exciting times to be in GME, we went through hell to get here, may we all be rewarded for our patience. RC isn't about to let us down neither. Three geniuses in my opinion are involved in this stock. RC,LC,& of course, RK, sorry Richard, you thought it was you didnt you? haha.
XD
A Reddit sub pointed out that when the Chicago exchange daily volume % is high on a day, like 12%+ as it has only been a few times the past few years,... (up from its usual .01%) GME goes up the following 10 days or so on average 150%.
11% on Chicago today! wowwww, and we saw the same price movement at around 1:45-2:45 ET as well. Incredible! GO GME!!!
Good morning Richard, TODAYS THE DAY! - daily GME hype starfish
Glad you mentioned the concept of selling puts.
I’ve had a theory that this has been one of RK’s tactics all along.
Selling deep ITM puts with the intention of getting assigned. Getting assigned a lot of shares at a price point higher than market creates upward price pressure especially in low volume.
Then all you have to do is buy calls into your expiry. Idk I don’t know anything but seems like a bullish strategy with no downside if you’re buying shares anyway and truly believe they’re undervalued.
All you need is a lot of upfront capital.
The only thing the market makers can do if they can’t/don’t want to deliver the shares is raise the price past the put strike so that all you get is a premium which is still a win.
“You’re not actually going into an asteroid field? They’d be crazy to follow us.”
“PUT all your hands where my eyes can see.”
Very interesting play indeed.
Here is a scenario run by Perplexity. If you are very confident in the play, it has very good upside:
In this scenario, let's break down the trade and its potential outcome:
Initial trade:
Stock price: $20
Sell 200 ITM puts at $50 strike
Capital required: $1,000,000 (200 contracts * 100 shares * $50 strike)
Premium received:
The premium for deep ITM puts would be close to the difference between the strike price and the current stock price, minus a small amount for time value.
Approximate premium: ($50 - $20) * 200 * 100 = $600,000
Using premium to buy calls:
Buy $20 strike call options with the received premium
Number of contracts depends on the price of these ATM calls
Stock moves to $30:
For the short puts:
These puts are still ITM, but less so
The value of the puts would decrease to approximately ($50 - $30) * 200 * 100 = $400,000
Unrealized gain on puts: $200,000
For the long calls:
These calls are now $10 ITM
Their value would increase significantly, likely to around $10 * 100 shares per contract, plus some time value
The overall position would likely be profitable, as the gain on the calls would outweigh the remaining liability on the puts. However, the exact profit would depend on the number of call contracts purchased and the specific option prices, which are influenced by factors like implied volatility.
It's important to note that this strategy carries significant risk. If the stock price had dropped instead, both the puts and calls could lose value, potentially leading to substantial losses.
@@RichardNewtonit’s risky unless you could accurately predict when volume would be low enough to ensure that your put assignment will move the price. Also all of the hedging that would go on between the puts and the calls would swell on its own I think. Again I’m not an expert by and means, just a theory, but this theory, to me, explains the Tenet meme.
Reminds me of the dune meme of him riding the worm. He needed two hands to control the worm and ride it into glory....maybe you are correct. @@cdark64
I've been zen for so long my guy. I hate buying into any hype, but when things get interesting. I'm glad you're still here. Reminds us all we're not alone.
Good morning! Excited about the topic! (First ten comment; yessss)
Good Morning Richard! Have a great day thanks for another video! :)
GOOOOD MOOORNIIIINNGG GAAMEEESTOOOPPP FAMMIILLLYYYYYY :)
Happy Tuesday!!
Bomboclat
WOHOOOOOOOOOOOOOOOOOO
All glory and honor to the Lord of Hosts. 🙏
Amen!
I have also observed what you are experiencing with the browser freezing with other charts as well, like Fidelity and Coinbase. It starts when too many elements indicators and drawing elements are added. For example, if you start with fresh one and add only 5 moving averages, generally things are fine. Add 5 more and zoom out so more data is needed and the chart starts dropping data in the middle of parts giving you invalid feedback and the periodic freezing begins. The only two ways I have worked around this rapidly is to duplicate tabs or eventually I ended up developing my own charting with locally hosted data.
Yeah I must have overwhelmed it haha. Thank you !
That 34 has been support or resistance ever since the sneeze, so the chart is looking very spicy!
Hope you feel better soon RN
Thank you Richard for your time and insight
Morning sir!!!
Happy Tuesday RN!!! Hoping to see another afternoon rally!
Have a great day!
Babe Ruth called his shot during a game at Wrigley Field which is in.... Chicago
*mind melts* :D
Good morning Richard.
Morning!
i've had i similar thought (i think) to when you said maybe selling puts pushes the stock up. the options chain is often leaning heavily towards OTM calls, and yes that could lead to a gamma ramp, but it also seems to put max pain at a lower price level. therefore, price gets pushed down until MMs lose control, but call buyers kinda force them to keep the price down
Good afternoon :)
Good morning brother and all my GameStop retail investors
Morning RN great overview glad to see you still here with us each day. Hope you feel better soon and I feel your pain with yahoo finance 😂
XD Good morning!!
Good morning Richard! You always start your day with a coffee, but how do you like to drink it? I'm an espresso fan :)
I cook it in a percolator and throw it over some ice and chug it basically. XD
Haha nice
Richard you're the MVP
Thanks, Richard🌹
Very insightful analysis. Great job Richard!
Newton-Sensei, I want to continue to express my gratitude for all your positive messaging and attitude. It has truly helped me through a rough time with losing my shift at work, and the deteriorating health of loved ones. I think I have the job situation more or less worked out now, and I'm hopeful that my family members will improve health-wise. Listening to your videos is an integral part of my day, trying to start with the right mindset. It seems strange since I'm not affiliated religiously, I'm not a Pokemon fan (though I did play WoW and MTG for most of my life), and I'm a low-skill investor, but your videos have absolutely been the right fit for my mornings. I appreciate your work and dedication, and positive energy. -Jonathan
Praying for you Jonathan!! I am so sorry to hear about both your shift at work and your loved ones.
When DFV posted the Joker meme holding the cat mask , the DD was suggested he was in Chicago, or atleast where it was filmed.
Now we are seeing large orders come in from Chicago, the two are linked for sure??? Re occurred today also
Very very curious!
Thanks Richard. Exciting times ahead. Get some rest and feel better soon.
2nd Snow ‘off’, ‘yippie!’ day🤗…Go GAMESTOP!!!! Thanks so much, Richard
Snow!!!!!!!
Well, it looks like I am averaging up on my next check.
Looks like we got a second day in a row with big Chicago volume. Could this possibly be related to a certain kitty taken shares for delivery? It's on the lit market so perhaps if a person recalls some faux brokerage "shares" now the broker is having to go buy a whole bunch of actual shares. This could get exciting.
When DFV posted the Joker meme holding the cat mask , the DD was suggested he was in Chicago, or atleast where it was filmed.
Now we are seeing large orders come in from Chicago, the two are linked for sure???
Hi Richard, great video as always.
I think if you consider selling puts as bullish (which I do agree with), you need to also consider that there could also be a lot of calls being sold which would be bearish.
Good point!
Happy New Year! May God bless you and your fam and may MOASS be upon us!
You too STV!
Let’s not be excited. But… 0:23
Shaping up to be an exciting day!
Thanks Richard, hope you feel better soon! Don’t be afraid to sleep in once in a while.
Took the day off! Doing easy chores and watching the stonk!
FREE DAY WOOOOOOO
@ awesome man :)
T+3 may be Friday, but does the market closure affect this? Is this even customary, the closing of markets for the passing of a former president? I don't recall seeing this before, but I haven't always paid attention.
Yep it is standard. I don't think it grants the extension from Finra but maybe!
🧡
It's amazing to see your prediction of 32.50 meanwhile I am looking at the ticker sitting at 33.85 with 1 hour and 12 minutes left at the end of the market. Insanity. Brace yourselves my friends.
Does it matter if pushed in money if people don't exercise, and most dont
I think so because on the back end your broker likely takes delivery of the shares anyway then sells so they can pay you out.
Richard, throughout the past runups, how many days after Chicago exchange increase percentage like past two days, did it take to run, and how many days ill that run stopped
Varied, the person covered it in their DD.
"Why do you still use Yahoo Finance?". I totally get your sentiments towards this question. Once you've got your stuff built up on a piece of tech, it's so uncomforting to set it back up somewhere else.
So true!
Can’t even imagine a timeline where Richard isn’t talking about how awesome the stock is doing right now.
:D Hahaha yeah what would I even be doing?!
Probably being an Awesome Father and loving Jesus. :D
another great video
Zen as always. Chicago is my new favourite city.
Very sophisticated!
cheers Richard
Cheers!
I love yahoo finance bc it stops me from acting like a daytrader lol...its called humility
Richard’s priorities
Jesus > family > coffee > GME > sleep > all else
Sums it up!!
40000 today, Richard...that's gonna be a lot bigger number by the end of the week.
the dead cat bounce effect is people taking profits from their long puts / short / sold calls.
LFG 🚀
Ticking time bomb 💣
Yahoo finance has a lot of problems lately. I use it also all the time. I don’t know what they are doing???
Bring back our night mode!!
Lets go Richard and lets go GME!!! Viva España and vivan los Estados Unidos de América.
☕️
Hey Richard, hope you are feeling better. Why would IWB have been way up ore market but sell off as GME rose into the close?✌️
I love Gamestop
☮️
Good morning
Richard
Amen 🙏🏿 to the GOOD WORD always appreciated
Yessir definitely gotta limit Our expectations
AMEN WHEN HE CALLS U OUTTA THAT VALLEY
Amen Truck!
Maybe I'm wrong, but selling a put for you is good but if you buy a put you could loose
Indeed but even selling the put does have risks.
Hey Richard how much are throwing off exchange?
About 50% a day it looks like.
Good
Morning
Enthusiasts!
richard, haha, i am aware of DFV's love for cats, but is the "cat ears formation" a real thing for technical analysis or is it just a DFV meme? hahahaha i'll take any hype lets go!!!
Haha no just made it up as usual.
Good Morning Richard!!
I saw a post on SS where Kevin Malone wealth claimed he was exercising calls yesterday. Might be worth checking out 💜
Saw that! Very curious!
KM has me blocked on X and I have no idea why 😂 I don’t think I’ve ever interacted with him and I’m generally a really positive person so 😭🤷♂️
Micheal Burry has me blocked too. Maybe just the word Ape is enough to throw people off 🤦♂️🤷♂️
Love your testament about walking thru dark times, and Jesus met you there. His Grace is overwhelming. All we have to do is ask. Great way to start the day being Thankful!! And GME is rocking up!! Thanks Richard for being you!!
Tomorrow when the NYSE and CHX are closed we Germans will light up the Frankfurt Exchange!! :D Muricans can probably also buy via the Frankfurt Exchange? nfa 😂
In the GOAT Ryan Cohen me trust game squeeze Inevitable the technical analysis is bullish beyond what a bullish stock can be
2 days now
I am selling $30 puts too, I am full bull.
Exactly how you said it, trying to build a floor, or I'll take the shares at $30 minus premium, or take the premium.
Nice!!!
I have really fallen in love with selling puts lately. We'll see over time how I feel about it, but seems like a really great trade to me most of the time. Thanks DD!
Sold 2 29s today.. made 20 bucks
If they drop tje stock. They gotta get my shares on lit market
Tesla had like 10% in 2024-10-18, they have done like 100% since then.
300% HTB today at schawb
Let's go!
So what you are saying is . . . . . the beacons have been lit?
Hi Richard, we all love you so much and just wanted to say if you need a few days to recover and sleep or anything like that please do that. Even though I know I will be itching to see you again, I understand respect that you are human and need some time to rest and chill! Anyway man, love you dude and thanks for your dedication.
Would you adopt a cat after the squeeze has squoze?
Asking for a friend
No haha. I love cats but would rather not own one.
yeah selling puts is bullish and a good idea for gme.
Richard, I have been screaming all morning at anyone who will listen. The requel is June 1 - June 18 (January 1 - January 18) Go look at the cats tweets June 1 - June 18. Time Travel.
Please contact me if you want a really crazy breakdown. I know pop culture is not your strong suit. I've been analyzing these with chatgpt all day.
Cat's out of the bag on 10th?
@@expirationstrategist it seems that way doesn't it
Start @ 2:40
Beautiful, Thank you.
Hey Richard, sorry to message on your board here again but I don't think I ever asked this of you and wanted to ask if you could please pray for me and my family. Thank you.
Big prayers DCS! Hope all is well.
Richard buy The Midrash Says by moshe weissman . Commentary on the first five books of the Bible so you can get a Hebrew perspective. Jesus understood the Bible from that perspective.
Thx!
We made it to $34🎉🎉🎉🖤🫡 13:39
LET'S GO!
So far
Happy Tuesday!