Maybe I am in over my head now

I just bought 15,000 shares of AMC at $2.90

I sold a bunch of options too that expire this week.

I shorted 75 calls with a $3.00 strike at $0.40 per share and then shorted another 75 calls at a $3.5 strike at $0.32 a share.

I collected $5,400 in option premium today… for risky ass options that expire in three days. What are these people thinking?

I won’t sleep the next three days. But, why on earth are these people paying this much for these options?

You not sleeping is why people are paying that. It’s really just that simple. You have become an insurance provider. And insurance companies don’t provide protection for free.

Yeah, I don’t hate the trade, but I am a experiencing a slight discomfort. Best case scenario the stock closes around $3.4-$3.49 on Friday and I can short another 75 contracts to have the other half of the stock called away and on someone elses books, which should put me downtown Denver partying and spreading coronavirus by 6 o’clock.

Yea I mean you limited your downside a bit by selling the calls but you still have 38,100 in long exposure to AMC’s stock. That’s like running backwards through a corn field with a helmet on.

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No question there. The idea is to pass the dog ■■■■ to someone else while holding it for only 4 days.

Bro…AMC +30%

These robinhooders will buy anything. I just need it to go another 14% and then I can have myself a $10k payday.

This is like watching an accident about to happen. You know you shouldn’t watch, but you can’t look away!

As one wise man once said…it ain’t what you don’t know that gets you in trouble. It’s what you know for sure that just ain’t so

Well, at least it’s covered call.

It’s just numbers on a screen dog.

It’s just numbers on a screen until they go from big to small.

Technically they’ll still be numbers on a screen though.

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You got this haha :fist: :fist: leave it all on the field

I’m definitely curious about how this trade turns out for you, mijo!!! :+1: :vulcan_salute:

lol covered call or not. you are net long a penny stock and amc has a ■■■■ ton of debt. no idea why people would ever take the long end of that. you never when they going to buss it. but imo you’ll prolly clear your premium, but one of these days, your gamble wont go the right way.
i like dow’s take on selling options equivalent to selling insurance. you collect your premiums, but when things blow up for them, you blow up! i always wondered what happens when you sell naked calls and it blows up. meaning they werent able to liquidate it in time. lets say you owe the broker like $7m but cant afford to pay them. what happens? do you just file for bankruptcy and tell the broker good luck?

Eat like a chicken and ■■■■ like an elephant!

They are paying so much because after the PIK was issued, everyone is expecting a share issuance given the shelf registration.

Because Silverlake is already v long, and AMC has access to digital revenue, there is still a bull case. Though havent looked at valuation.

I can ride that for a few days in order to pay a contractor.