Got one new option to share. RR option.
As triple witching on 9/19, so things could get volatile. RR’s options only started trading less than a week ago, and the stock already bounced near $3.90 before pulling back. With it grinding higher again, I wouldn’t be shocked to see $4+ soon.
Here’s the kicker: $4 strike calls are only $0.10. That’s $10 a pop. You throw $100 at 10 contracts, and if RR rips into expiration week, those could easily go 4×, 5×, maybe even 10×. Worst case, you’re out a hundred bucks. Best case, you’re stacking a serious return.
And don’t forget when call volume explodes, mms gotta hedge. That means buying shares, which just fuels more upside.
For me, this feels like one of those small risk, big reward setups you don’t see often. Cheap lotto with a macro tailwind.
Not financial advice, but I’m in.
Posted by roycheung0319
2 Comments
While anything can happen, this needs to rip 35% higher just to break even at expiration. The delta is 0.19 so a MM would be buying 19 shares for each call they sell, with 103 million shares float that’s not going to have an impact. Volume seems to have died down, it ramped up prior to earnings. Also 15.5% short float, unless there’s some unknown catalyst I can’t see this being worth buying $4 calls.
That “$10 to make $100” pitch is how casinos stay in business.
Cheap does not mean mispriced but implied vol is sky-high and the odds are against you.
If your whole thesis is “it could 10×,” you are not trading, you are buying scratch-offs with greeks attached.