/biz/ - Business & Finance

It hasn't even begun bros. That said I got a little worried when I checked the PNK price this morning after buying last night at 0.067, but ultimately I'm not worried.

I bought LINK well below current prices. I bought BTC well below current prices. My overall PNK average cost is now well under 0.1. I can hold this shit for years and not worry. BTC could dip 80% and it wouldn't affect me. LINK could crash to $4 and I'd only buy more. PNK could go to 0.01 and I'd only buy more. I AM going to make it and I WILL hit my target of $5M to start cashing out into normie divvy stocks for passive ROI of $40k/yr so I never have to work again.

>>24954924
I'm a buy low sell high hodler. Never used leverage and never will. My hands are titanium and I never fomo because my waifu grounds me.

>>17924271
>muh fancy math
Maybe that's necessary to understand how to price options you're writing to avoid blowup, but for a buyer it's pretty simple.

1. Over time option becomes cheaper because the odds of hitting the strike go down as time remaining goes to zero. Strikes further away from the current trading price are cheaper than strikes closer to current trading price. Options in the money are theoretically worth the difference between strike and current price but supply and demand and holders who can't afford to execute mess with things a little and can't be predicted, but should have a minor effect.

2. Normally algos do all the fancy math and use spreads to take advantage of option mispricing and they run on autopilot producing predictable gains. However with the massive volatility and collapse we're seeing algos can't properly evaluate option values in two ways: they undervalue options with strikes far away from current price because normally there's no way the market would shift that much in three months, let alone 3 trading days; and similarly they're undervaluing options with short time remaining for the same reason, there NORMALLY wouldn't be such fast jumps in the current price in either direction.

3. Quants have failed to tune their algos for options for this environment, so short expiring way out of the money options which should be higher priced than they are, are selling for very cheap as usual. However, when the market jumps 5% in either direction, they suddenly fall into the algo strike zone and are considered more viable and the price jumps 100+%. This is where /smg/ and probably reddit are doubling their money all the time because there's just enough liquidity in options to support a couple hundred NEETs doubling their money day after day, eating the algos' lunch. And the algo people probably don't even notice this because when you start moving millions of dollars into this area, the opportunity would disappear.