r/wallstreetbets • u/Coreylian101 • Jan 22 '25

Gain Thanks ORACLE

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Bought at 0.05 last week and sold for $9.

13.4k Upvotes

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u/Singularity-42 Jan 23 '25

Is this insider trading?

6.4k

u/spyputs1 Jan 23 '25

Bro just had a hunch and dropped $9k on next week options

100

u/Acceptable-Win-1700 Jan 23 '25

That's insane. I made 100% on my ORCL calls, but that was based on price action and IV levels a few weeks ago when I bought it, and they had over 200 days to expiration when I dumped them today.

124

u/Singularity-42 Jan 23 '25

Yeah that's a normal option play.

51

u/Conscious_Ad_4085 Jan 23 '25

Thank you for this comment. I forget what normal is sometimes.

2

u/inspire21 Jan 23 '25

AKA not normal for this sub then right?

1

u/Singularity-42 Jan 23 '25

Yeah, I suppose.

In any case you can lose money with long term options as well. Ask me how!

2

u/Betomat Jan 23 '25

What do you mean with ORCL call?

2

u/Acceptable-Win-1700 Jan 23 '25

Call option on Oracle stock.

2

u/Butholxplorer_69_420 Jan 23 '25

Same I had June calls as I thought undervalued at 155, only measly 150% for me

1

u/mambamvp24 Jan 23 '25

Was strike itm when you bought them? Nice play

1

u/Acceptable-Win-1700 Jan 23 '25

I think they were pretty close to ATM. About $150. I also like to roll up when the price moves in my favor and convert delta to ext for a credit. You sacrifice a small amount of potential future gains for lower risk and more capital efficiency. So I did that, but exited the following day because I needed to cut my overall portfolio delta.

1

u/mambamvp24 Jan 23 '25

Thanks man

1

u/vvvvfl Jan 23 '25

“Price action “

Do yourself a favour and say “based on tea leaves”

You gambled and won, don’t pretend you knew what you were doing.

3

u/Acceptable-Win-1700 Jan 23 '25 edited Jan 23 '25

I do use technical analysis. I use 200 day moving averages to get a quick sense of overall trend direction and where the price is relative to it, sometimes I'll draw lines through consecutive highs and lows if it looks like price is consolidating (gives me an idea of time-frame when vol expansion is more likely to occur), and I don't completely ignore head/shoulders or double top patterns because those are just indications of price levels that act as psychological support or resistance. But that's it, no MACD or RSI or obscure patterns or candles.

I took a risk, but it was a calculated risk. I didn't borrow against my house to take the position, it was a small portion of my portfolio that I would have been fine losing 100% of, but expected it more probabilistic to lose closer to 50% before cutting it loose due to the greeks, and the "tea leaves" suggested some degree of unquantifiable edge on top of the 50-50 probability of profit calculated based on IV. Taking the position also didn't shift my overall portfolio delta beyond where I wanted it for risk management, and I had plenty of short theta to spare.

If any degree of risk taking constitutes gambling, then literally everything is gambling. When you pay your power company, you are gambling that they will keep your power on and not just take your money and run. When you go to work and collect a paycheck, you are gambling that you aren't shot in a carjacking on the way there, that your boss pays you for the work you do, and that the dollars you are paid don't become void due to a communist revolution or something. Is the likelihood that those things happen small? Sure, but the risk of those things are pretty unquantifiable.

The stock market is the same. You can take big risks, little risks, or anything in between. And a lot of those risks are fairly quantifiable to a degree. Especially with options, which is one of the beauties of investing using capitally efficient derivatives. You can very clearly define what the worst case scenario will be. It is only "gambling" if you are taking outsized risks or remain unaware of the risks you are taking.