Less Dumb Investing

Derivatives

Call options 101

What Is a Call Option? So, a call option is one of those fancy financial contracts that give you, the buyer, the right—but not the obligation—to buy a stock, bond, commodity, or whatever other asset you fancy at a pre-agreed price within a certain timeframe. Think of it like reserving…
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Stocks and Equities

90,000 Gamestop options contracts traded; did the counterparty buy or sell?

Hint, he sold I know it seems like I talk a lot about GameStop, relatively speaking, but it’s just so dang interesting. It’s a masterclass of optionality and influence. Below is the GameStop call options chain expiring in 9 days (not all strikes visible) Keith Gill, aka Roaring Kitty, owned…
Continue reading →: 90,000 Gamestop options contracts traded; did the counterparty buy or sell?
Stocks and Equities

Where did Keith Gill, aka Roaring Kitty or DFV, get his millions?

It seems that Andrew Left and I have similar concerns. I was musing to some others yesterday that I’m not exactly sure how Keith Gill, the user who sparked a legitimate short squeeze rally in GameStop in 2021, has gained so much wealth. It’s clear that others shared my concerns,…
Continue reading →: Where did Keith Gill, aka Roaring Kitty or DFV, get his millions?
Stocks and Equities

Tesla’s incestuous relationship with its dad may be unhealthy

My best friend told me to find someone who loves me almost as much as Tesla’s board loves Elon Musk. A standard public corporation in America looks like this: Of course, Tesla is not a typical public corporation in America. Its CEO is a firebrand personality who has added value…
Continue reading →: Tesla’s incestuous relationship with its dad may be unhealthy
Stocks and Equities

Reasonably priced euphoria: Understanding NVDA’s rise and its return to a growth firm

There are key assumptions when investing in stocks: you assume that you will earn a risk-adjusted return over a period that will be enough to compensate you for, well, the risks. Equity compensation is expensive, and it seems like no equity is more expensive right now than Nvidia. Yet, on…
Continue reading →: Reasonably priced euphoria: Understanding NVDA’s rise and its return to a growth firm
Stocks and Equities

The stupidity of the crowd: Gamestop’s recent run

The week of May 13th has been an exciting one for retail investors. Actually, that’s not quite accurate. The retail investors I know aren’t exactly buying into GameStop’s recent meteoric rise. It shouldn’t shock most investors to see the meme-stock rally of May 2024 as a temporary blip. However, what…
Continue reading →: The stupidity of the crowd: Gamestop’s recent run

Less Dumb Investing

Call options 101

90,000 Gamestop options contracts traded; did the counterparty buy or sell?

Where did Keith Gill, aka Roaring Kitty or DFV, get his millions?

Tesla’s incestuous relationship with its dad may be unhealthy

Reasonably priced euphoria: Understanding NVDA’s rise and its return to a growth firm

The stupidity of the crowd: Gamestop’s recent run

Less Dumb Investing focuses on the less known sides of equity, derivative, electricity, and commodities investing. Be less dumb.

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