In the pastBestonlinecasinonodepositsignupbonusIs the "king of bonds" becoming the king of options?
Bill Bill Gross, known as the "old debt king", has got into the habit of selling MEME stock options, and his most recent trading partner is GME.BestonlinecasinonodepositsignupbonusUs) and AMC Entertainment (AMC.US). The legendary investor said he had sold call and put options for both companies, whose shares were soaring and speculators took advantage of retail traders' favorites to use the stock market as a casino.
In the recent trading storm, game stations soared 179% in two days, while AMC soared 135%, and Gross commented on X that "Gamestonk" was out of date. "buy? Do you sell it? He wrote on the social media platform on Tuesday.
His strategy focuses on selling what he calls "400% annualized volatility".
The deal is a sale of $40 call and put options, known as straddle trades, betting that the stock will not fluctuate too much in either direction. He made $22 from the option portfolio and would have made the most if it closed between $18 and $62 on Friday, and if the closing price was close to $40. He adopted a similar strategy for AMC, selling a $10 straddle deal.
GameStop shares soared to $64.83 to close at $48.75, while AMC closed at $6.85, opening at $11.88.
About seven weeks ago, Gross sold the options of the former Trump Media Company. At the time, Gross bet that Trump Media's share price would remain between $45 and $95. A few weeks later, the stock fell to a low of $22.55, but rebounded to $53.40 at Tuesday's close. Gross said he was no longer in that position.
The recent frenzy has spread to many of Wall Street's most annoying stocks, reminiscent of the 2021 MEE boom, when individual investors lashed out at short sellers on forums such as Reddit Inc.'s WallStreetBets and chat room StockTwits. The soaring share price has attracted the attention of a small number of social media celebrities, including Dave Portnoy, the founder of Barstool Sports, who bought the stock.
However, even with a rebound, PlayStation's shares are still about 60 per cent below their intraday highs, while some AMC investors have suffered paper losses of more than 98 per cent. The recent gains in the two stocks have unnerved short sellers, losing more than $1 billion by market capitalisation this month, according to S3 Partners, a financial analysis firm.