This is an automated archive made by the Lemmit Bot.
The original was posted on /r/Superstonk by /u/greencandlevandal on 2025-06-18 22:28:48+00:00.
Hey there Apes. This is a follow up post to my One Big Beautiful DD - Part 1 - Price Action.
DISCLAIMER: The information contained in this post is for general information purposes only. Any reliance you place on such information is strictly at your own risk. It is not intended to constitute legal or financial advice and does not take your individual circumstances and financial situation into account. I do not provide personal investment advice and I am not a qualified licensed investment advisor. I am an amateur investor. All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. Conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions.
https://preview.redd.it/81wkaod4br7f1.png?width=2395&format=png&auto=webp&s=228f2aa854114bb62977941a30a0d5f2ceaedaba
I. Puts
Deep-out-of-the-Money:
- 260116P5 - 625 on 6/18
- 260116P8 - 440 on 6/12, 375 on 6/17
- 260116P9 - 205 on 6/12
- 260116P10 - 7350 on 6/12
- 260116P13 - 3430 on 6/12
- 260116P15 - 4770 on 6/12, 3370 on 6/13, 2260 on 6/17
- 260618P10 - 1150 on 6/12, 305 on 6/16
- 260618P15 - 330 on 6/12
- 270115P3 - 300 on 6/11
- 270115P5 - 10090 on 6/12
- 270115P10 - 1650 on 6/12, 565 on 6/16, 9370 on 6/17, 2390 on 6/18
- 270115P13 - 1500 on 6/12, 675 on 6/16, 2950 on 6/18
- 270115P15 - 640 on 6/12
- 271217P3 - 18100 on 6/17
- 271217P5 - 23890 on 6/12, 1120 on 6/13, 1350 on 6/16, 2500 on 6/17, 740 on 6/18
- 271217P8 - 945 on 6/12, 845 on 6/16
- 271217P10 - 1420 on 6/12, 700 on 6/18
- 271217P13 - 1000 on 6/6, 1160 on 6/12, 940 on 6/17
- 271217P15 - 390 on 6/12
- Deep-Out-the-Money (DOTM) Puts
Deep out the money puts are used to suppress volatility, influence skew/smile to make puts cheaper, offset gamma, and reduce VaR/margin requirements to satisfy their risk models so they don't get margin called, which in turn reduces cash requirements and provides more leverage.
When the shorts buy DOOTM Puts in large enough sizes, market makers become short delta, which they hedge by shorting GME shares. This adds downwards hedging flow and can be used to sink price.
When shorts sell DOOTM Puts, it flattens left-side skew which lowers implied volatility across the entire options chain. This makes long puts cheaper and calls more expensive. The volatility compression weakens gamma ramps and lowers premiums. So, selling DOOTM puts isn't bullish, its a volatility dampening mechanism which helps cap rallies. By flattening the volatility skew they also appear to be in a lower risk situation in their VaR/stress tests which allows for reduced margin requirements.
Buying DOTM puts increases downside skew, and selling DOTM puts flattens skew and suppresses volatility.
__________________________________
II. Calls
Deep-in-the-Money:
- 260116C10 - 1250 on 6/12
- 260116C15 - 2600 on 6/12
- 260618C3 - 6870 on 6/12, 1620 on 6/16, 1420 on 6/17
- 260618C10 - 1350 on 6/17
- 260618C15 - 4810 on 6/12
- 270115C3 - 210 on 6/12, 580 on 6/13, 1820 on 6/16
- 270115C5 - 4120 on 6/12, 1060 on 6/17
- 270115C10 - 405 on 6/17
- 270115C13 - 300 on 6/12
- 270115C15 - 1180 on 6/12
- 271217C15 - 1750 on 6/12
Deep-out-of-the-Money:
- 250620C125 - 7900 on 6/11, 10450 on 6/12, 7220 on 6/16
- 260116C125 - 3770 on 6/11, 13200 on 6/12
- 260116C110 - 500 on 6/5
- 260116C100 - 720 on 6/11, 620 on 6/12, 950 on 6/13
- 260116C80 - 625 on 6/12
- 260116C70 - 560 on 6/10, 590 on 6/12
- 260116C60 - 390 on 6/12, 970 on 6/16
- 260116C50 - 2200 on 6/12
- 270115C65 - 1600 on 6/12, 3110 on 6/17
- 270115C50 - 570 on 6/12, 930 on 6/13, 1070 on 6/16
- 271217C60 - 400 on 6/12
- 271217C50 - 1050 on 6/12, 2720 on 6/13
- Deep-In-the-Money (DITM) Calls
When DITM calls are bought, they're used by longs to gain synthetic long exposure with low theta and high delta. For shorts, buying DITM calls can be a way to stabilize or control a price rise by absorbing dealer delta.
The dealer who sold the calls is short delta, so they buy stock to hedge. This can add controlled upward pressure to offset synthetic shorts or short swaps.
Buying DITM puts can offset short swaps or short exposure, create synthetic long hedges in case price rises too quickly, give the appearance of being long for regulatory optics, and lower perceived risk in VaR models to reduce margin pressure. They're mainly used for delta and gamma exposure.
When DITM calls are sold, the seller receives a large premium due to intrinsic value.
The dealer who bought them is long delta and must sell stock to hedge. This can cap a rally or blunt upward momentum.
Selling DITM calls can help shorts reduce exposure to previous synthetic long positions, harvest premium while applying downward pressure via dealer hedging, help suppress price spikes during key moments, and lower upward gamma exposure.
Selling DITM calls is functionally similar to adding short pressure due to the dealer needing to sell the underlying.
- Deep-Out-the-Money (DOTM) Calls
DOTM calls have high gamma but low delta, and come with a high reward if price spikes.
When dealers sell DOTM calls, they're short gamma, but the initial delta hedge is small. If price rises rapidly, delta increases and dealer must buy more stock. So buying DOTM calls can fuel a gamma squeeze.
When DOTM calls are sold, it caps upside gamma squeeze potential, helps neutralize bullish option skew, reduces vega and compresses IV, and helps you appear lower risk in stress test models.
When dealers buy DOTM calls as the counterparty to a seller, they become long delta, short gamma, and short vega, so they must sell stock to hedge initially, and if the price rises, they must sell even more stock as delta increases. This dealer hedging pressure helps suppress rallies and dampen volatility. It can be used by shorts to cap rallies and/or suppress gamma ramps.
Selling DOTM calls is a volatility suppression tool. It's used to limit upward momentum, especially when combined with short stock or short puts.
__________________________________
Both buying and selling DITM calls can stabilize and/or cap a price rise, but for different reasons:
Buying DITM calls causes controlled buying by the dealer in a slow, methodical, and hedge-based way. Think of it as a guided ascent. It causes buying but it smooths volatility. It can be used to stabilize a rally, hedge a short position without buying stock outright, and/or pre-position for gamma events or suppress volatility without pumping the price. CONTROLLED RALLY, STABLIZING.
Selling DITM calls causes controlled selling by the dealer. This adds downward pressure and/or caps further upside movement. It can be used to collect premium while also suppressing a rally, exit synthetic long positions, or engineer dealer selling to counterweight bullish flow. BLUNTS/CAPS RALLY.
Both actions can dampen price moves, but they apply pressure in different directions.
The goal of both is the same = avoid vertical moves which can cause gamma squeezes, and keep price movements stable and within acceptable ranges.
__________________________________
Volatility
DITM options have low vega and high delta. They don't influence IV much when traded. They're more so used for synthetic exposure, hedging, or controlling gamma.
Buying and selling DITM calls has minimal effect on IV. These mainly have price impact, not volatility impact.
DOTM options have high vega and low delta. Large trades move the skew/smile.
Buying DOTM calls increases IV and steepens upside skew.
Selling DOTM calls decreases IV and flattens the smile/upside skew. It caps gamma ramps. Dealers become long vega and are incentivized to lower premiums which suppresses volatility.
__________________________________
TLDR:
- On June 12th there were 34,000 $5 puts traded.
- On June 12th, there were 11,500 $10 puts traded.
- On June 11th/12th, there were 35,000 $125 calls traded.
- On June 12th, there were 11,000 $3 and $5 calls traded.
- On June 17th, there were 18,000 $3 puts traded.
- On June 17th, there were 10,000 $10 puts traded.
Take a look at my previous post, One Big Beautiful DD - Part 1 - Price Action, and compare this activity to March/April.
The $5 put was used excessively on 3/27, just like 6/12. And the $3 put was used heavily on 6/18.
I go into how DITM and DOTM options are used to influence IV and price.
- Buying DOTM puts in size, and selling DITM calls causes price drops.
- Selling DOTM puts and calls flattens and suppresses IV.
- Shorts use a cocktail of both to drop price and IV.
I wonder if we'll get any $70 - $90 puts trading in the next few days or if they're using other methods this time. Most of t...
Content cut off. Read original on https://old.reddit.com/r/Superstonk/comments/1leul3b/its_the_march_offering_all_over_again_here_we_go/
