AquireWisdom on Nostr: preston james Lawrence Lepard Dr. Jeff LynAlden Have any of you noticed the huge ...
preston (npub1s5y…6q7z) james (npub1cj9…0efa) Lawrence Lepard (npub1d3f…r4xv) Dr. Jeff (npub1k7v…c04l) LynAlden (npub1a2c…w83a)
Have any of you noticed the huge delta skew on the January or February options for MSTR? You can buy a long $1 vertical spread that is in the money for 35-45 cents. So that is 55-65 cents of upside with a max downside of your investment, and you are already in the money (meaning the price of the underlying does not need to appreciate in order for you to collect at the expiration date). My guess is this is from a bunch of people buying long only calls way out of the money, which has made the 50 delta move up way over the current stock price, resulting in the interesting/appetizing prices I listed above). Any thoughts?
Have any of you noticed the huge delta skew on the January or February options for MSTR? You can buy a long $1 vertical spread that is in the money for 35-45 cents. So that is 55-65 cents of upside with a max downside of your investment, and you are already in the money (meaning the price of the underlying does not need to appreciate in order for you to collect at the expiration date). My guess is this is from a bunch of people buying long only calls way out of the money, which has made the 50 delta move up way over the current stock price, resulting in the interesting/appetizing prices I listed above). Any thoughts?