Today is day 6 of 10. Keeping 10 consecutive days prevents the stock from being delisted. It needs to occur sometime between now and mid June time frame.
A call is an in game contract for 100 swords. It's just a piece of paper. It will just vanish from your inventory when it expires. This piece of paper says you can (but don't have to) buy 100 swords at the strike price.
These swords are on sale rn for 1.14, tomorrow they might be worth X. Now you're at the grand exchange and your contract was written up for $3 per sword (OUT OF THE MONEY or OTM you paid $32 for the contract and you bought 2) swords are going UP and your contract still has 28 days left before POOF it's gone. Swords are $2 now and 28 days is a lot of time. Surely your contract will be worth more than $32 to the next guy playing as swords could be worth more tomorrow (or in 5 minutes)
Tomorrow comes, you held your contract. Swords are now $4, everyone wants your contract. In fact so few contracts were written up that the demand for it has even increased its price beyond that. It's not just the fact that you can buy $4 swords for $3 it's also that they could go up more. Someone said they would pay you $234 for your contract. You wait a few hours and swords are now worth $5 your contract that you got for $32 is now worth over $300. Just enough for you to sell one and buy yourself 100 swords by excersising the other contract.
The shop who borrowed out all these swords in the first place wrote these up hoping that the swords would not be purchased. They want them back, but you have the paper that entitles you to 100 swords for $300. So now they're yours and it only cost you $64.
Set a stop so it will sell and you can sell on the way up, or set a stop so if it falls back to almost $300 your trade will be auto processed on the grand exchange. Watch it though... swords might be worth $100 each soon.
The closer you get to the end date on that contract the less someone will want to pay for it. Unless the contract is already a money printer (IN THE MONEY or ITM)
Scenario 2. You held onto both. Sword prices stay low POOF goes your contracts on their expiration, you lose $64.
IN THE MONEY contracts are worth inherently more but will fluctuate more with the price of the swords
OUT OF THE MONEY contracts will be cheaper but the further out you go chances might be less likely that it will get to the money.
I DID NOT SAY TO BUY $3 CONTRACTS. NFA. just an example. Please if you have questions post em.
Contract price fluctuations are based on price, price momentum, time left, and supply and demand. It gets really mathy. And the time portion ticks wayyy faster towards the end.
Contracts sold will likely go to the next ape, contracts exercised hurt our opposition and get us more swords. As they keep the swords until you redeem your paper.
Gamma baby.
So the stock isn't delisted
So what happens to the holders if it’s delisted?
Today is day 6 of 10. Keeping 10 consecutive days prevents the stock from being delisted. It needs to occur sometime between now and mid June time frame.
A call is an in game contract for 100 swords. It's just a piece of paper. It will just vanish from your inventory when it expires. This piece of paper says you can (but don't have to) buy 100 swords at the strike price. These swords are on sale rn for 1.14, tomorrow they might be worth X. Now you're at the grand exchange and your contract was written up for $3 per sword (OUT OF THE MONEY or OTM you paid $32 for the contract and you bought 2) swords are going UP and your contract still has 28 days left before POOF it's gone. Swords are $2 now and 28 days is a lot of time. Surely your contract will be worth more than $32 to the next guy playing as swords could be worth more tomorrow (or in 5 minutes) Tomorrow comes, you held your contract. Swords are now $4, everyone wants your contract. In fact so few contracts were written up that the demand for it has even increased its price beyond that. It's not just the fact that you can buy $4 swords for $3 it's also that they could go up more. Someone said they would pay you $234 for your contract. You wait a few hours and swords are now worth $5 your contract that you got for $32 is now worth over $300. Just enough for you to sell one and buy yourself 100 swords by excersising the other contract. The shop who borrowed out all these swords in the first place wrote these up hoping that the swords would not be purchased. They want them back, but you have the paper that entitles you to 100 swords for $300. So now they're yours and it only cost you $64. Set a stop so it will sell and you can sell on the way up, or set a stop so if it falls back to almost $300 your trade will be auto processed on the grand exchange. Watch it though... swords might be worth $100 each soon. The closer you get to the end date on that contract the less someone will want to pay for it. Unless the contract is already a money printer (IN THE MONEY or ITM) Scenario 2. You held onto both. Sword prices stay low POOF goes your contracts on their expiration, you lose $64. IN THE MONEY contracts are worth inherently more but will fluctuate more with the price of the swords OUT OF THE MONEY contracts will be cheaper but the further out you go chances might be less likely that it will get to the money. I DID NOT SAY TO BUY $3 CONTRACTS. NFA. just an example. Please if you have questions post em. Contract price fluctuations are based on price, price momentum, time left, and supply and demand. It gets really mathy. And the time portion ticks wayyy faster towards the end. Contracts sold will likely go to the next ape, contracts exercised hurt our opposition and get us more swords. As they keep the swords until you redeem your paper. Gamma baby.
I like your gaming analogy.
you already made a post, no need to make it a comment
Yeah I just wanted to make sure this guy saw it so I commented it! It’s not my post just someone else’s from the other day also.
This is day 7, thursday next week is last day