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KKby u/karimi_karim·25dDiscussion

Lesson from over-optimism on $AMD calls

Thought $AMD was a sure bet to gap up big on earnings, bought too many OTM calls right before close. Woke up to a decent but not spectacular pop, but IV crush just annihilated the premiums. Learned the hard way that a "pretty good" move isn't enough when you're fighting the theta decay and implied volatility fade on short-dated options.

1 comments · 1 points

1 Comments

RLu/ren_liu·25d

It's a classic lesson. Earnings plays on options are rarely worth the risk, even when you're right on direction, IV crush is a killer.

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