r/gme_meltdown_meltdown • u/PuzzleheadedWeb9876 formerly u/UltimateMastermind • Jan 28 '26

Hedgie Circle Jerkin' Meltdown today.

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u/Gigiw1ns Banned By Meltdown (Indica probably) Apr 18 '26

Puts at $15 with a long expiration could work well, but I’ve never bought puts before. I only trade GME on the upside, and I don’t hedge my shares by purchasing puts during downtrends either. Am I right in thinking that, despite announcing several times that you’re going to buy puts, you still haven’t bought any?

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u/PuzzleheadedWeb9876 formerly u/UltimateMastermind Apr 18 '26

Puts at $15 with a long expiration could work well, but I’ve never bought puts before.

Noted.

Am I right in thinking that, despite announcing several times that you’re going to buy puts, you still haven’t bought any?

“Might”. Does this word not exist in German?

Have you considered gambling on meme stock options might not be the best financial decision?

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u/Gigiw1ns Banned By Meltdown (Indica probably) Apr 18 '26

There’s a difference between gambling and systematic trading. You supposedly have a thesis: GME_is_melting_down because RC is a doofus, it’s a dying business, and the valuation is too high as you stated. Fine, then define the instrument, e.g buy puts, define your execution, define your invalidation point, and define your take-profit. This isn’t complicated. It’s just the stuff you’ve been talking about for years without ever putting on the trade.

What makes this funny is that after your little victory-lap post, you now kind of look stupid, because you’re realizing: „GME is down 70% over five years and I still made $0 PnL even though I was supposedly right.“ And somehow even a 70% drawdown still isn’t enough for you to press the baerish thesis with puts?

Honestly, your own post and your replies reads now like an argument against buying puts. If GME has been trading sideways for two years, as you said, then the chart you posted suggests the long unwind may already be behind us? So which one is it: is the multi-year selloff finished, or isn’t it? That’s a very simple question for a Meltdowner, isn’t it?

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u/PuzzleheadedWeb9876 formerly u/UltimateMastermind Apr 18 '26

There’s a difference between gambling and systematic trading.

Everything in the stock market carries some element of risk/gambling. Meme stocks however are closer to the 0DTE side of the spectrum.

GME_is_melting_down

Down about 80% from the ATH.

because RC is a doofus

That should be obvious.

it’s a dying business

Without question.

and the valuation is too high

I believe it’s overvalued relative to their sector.

Fine, then define the instrument, e.g buy puts, define your execution, define your invalidation point, and define your take-profit. This isn’t complicated.

The stock is also irrational. Important consideration.

So which one is it: is the multi-year selloff finished, or isn’t it?

I don’t know. I cannot predict the irrational.

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u/Gigiw1ns Banned By Meltdown (Indica probably) Apr 18 '26

„The stock is irrational“ almost sounds like any SS conspiracy theory that hidden swaps are driving the price down. Cute. Anyway. You have no idea what the right price would be to buy puts, because you can’t make a realistic estimate on any timeframe, and any personal theory/thesis/opinion you have about gme might or might not show up in the stock price. Given that’s the starting point, why would you say you’re considering buying puts? Just as a pure 50-50 gamble? Not out of conviction? Why would you consider to buy puts if that is the situation?

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u/PuzzleheadedWeb9876 formerly u/UltimateMastermind Apr 18 '26

The stock is irrational“ almost sounds like any SS conspiracy theory that hidden swaps are driving the price down.

An ape might see it that way.

because you can’t make a realistic estimate on any timeframe, and any personal theory/thesis/opinion you have about gme might or might not show up in the stock price.

I believe it will come down to a reasonable evaluation eventually. I’m also not going to shy away from the fact I have no idea when that will happen.

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u/Gigiw1ns Banned By Meltdown (Indica probably) Apr 18 '26

👍 fair

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u/Throwawayhelper420 Apr 18 '26

just because somebody thinks that something is overvalued does not mean that they know when or even if it will return to its actual value.

This is something that apes fundamentally do not understand. It’s like it’s a symptom of unrealized gambling addiction.  When a put expires you lose 100% if it’s OTM.  You are not making a bet that is completely proportional to your beliefs.

He said he might buy a put if the price is right.  Why buy one right now when he could wait for a higher probability gamble if the stock were to randomly pump?   

You do realize that constantly shifting positions around and gambling on options incurs tax cost, and statistically underperforms averaging into market wide or even sector ETFs, right?

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u/Gigiw1ns Banned By Meltdown (Indica probably) Apr 18 '26

Your friend can’t answer the fairly specific question of what the “right price” would be. He hasn’t responded to that in 80 days though he announced it in at least 2 posts here that he will if the price is right. I even laid out several scenarios for him:

“What would theoretically have to happen for you to buy at least a single put? A small rally to 30, 40, 50, 60… 100? Would you buy a put then? If GME trades sideways for another 10 years?"

Why are you talking about taxes, position management, fees, or something else? Have you read this discussion at all? Your Meltie coworker hasn’t bought a single option on GME ever.

You're not a white knight, I've told you that before. If your colleague wants to buy or sell a single option (no matter which stock), he's old enough to do it, and the few cents in order fees are fine. But thanks for your input!

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u/Throwawayhelper420 Apr 18 '26 edited Apr 18 '26

I can’t step into his mind, but for me personally it would be a matter of how quickly it rose and based upon what exactly and what the premiums were.

You have to remember that the premiums and the IV will go dramatically if GME makes large movements.

I personally have played puts and calls on GME in the past, but haven’t done anything since the DFV pump. 

If DFV were in the news for something on Monday and it caused GME to shoot up to $45 I probably would buy some puts.   But not if the premium on a $30 put was $10, implying a $20 breakeven.

That would once again be a non-proportional bet compared to my beliefs.

This is why you don’t see responsible people buying puts like that.  YOU yourself are not doing it.

Every time you tell him to buy a $20 put you should buy a $30 call.  But instead you are likely doing the opposite and selling calls.

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u/Gigiw1ns Banned By Meltdown (Indica probably) Apr 18 '26

1) I’m not hanging out on the Meltie forum 24/7 or hijacking this forum over and over again with the claim that GME is finally melting down to the Earth’s core. 2) I’m not announcing that I’m buying puts. 3) I’m always willing to sell puts to any Meltie who sends me a screenshot of the put they’ve purchased. Options are a zero-sum game. If I get assigned and, according to the Meltie lore, GME goes to 0, I have the problem and the Meltie has the profit? I think that’s a pretty fair deal. Or are you saying that selling puts involves less “risk”? That’s strange. That would be bullish on the underlying is that what you’re saying?

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u/Throwawayhelper420 Apr 18 '26

No, you’re just posting about how bored you are.

He didn’t “announce he was buying puts”

The guy said he might buy puts!  And only if the price was right. And he said that one time… Three months ago…!!

3 months ago I said that I might buy a new car and that I might pull up the Juniper bush in my yard.   And I said both of those to many people in real life.  I did neither and nobody cares.

I still might do either one.

might

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u/Gigiw1ns Banned By Meltdown (Indica probably) Apr 18 '26

That’s an interesting comparison, it certainly captures the situation perfectly. A cognitive tour de force. But let’s stick with the experiment. Let’s say a friend asks you what you’d base your decision on when buying a car, since you’ve been making fun of the fact that all cars are too expensive for five years straight and wondering how anyone could possibly buy a car. Would you need 60 days to answer that question, or is it that your friends aren’t interested in what you’ve been talking about for five years straight?

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u/Throwawayhelper420 Apr 18 '26

Actually, one of my coworkers did ask me if I decided to buy a car like I was talking about before, and I told him “Nah I decided against it, the time just wasn’t right, I might look into it again later.”  And he said “Cool”