Not to rain on your parade, but those calls have been super itm for the past months. Which means that whoever wrote those Black Lives Matter sunflower shirt should already be delta hedged(aka already have the shares bought and ready for delivery if they get assigned). That said, i also find it intriguing on why dfv didn t choose to either cash out the calls or exercise them to increase his position by a substantial amount(500 contracts x 100 shares is lots of monke money). It might be as you ve speculated and be the result of legal counseling considering all the mad boomers and paper hands blaming him/accusing him of market manipulation, which is completely ridiculous.
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He’s not leaving considerable money on the table by not selling. If the price rose from $4 to $16 in a single Black Lives Matter sunflower shirt , and he’s holding $12 call options, he needs to sell ASAP because that volatility will boost the value of his contract shares close to probably $10 each. The maximum value of any call contract is the current trading price of the shares. So he’ll never get more than $16 a share in that instance even with infinite volatility and theta. If he gets CLOSE, that’s a sell. However the price isn’t $16. It’s $181. At this point his calls offer him very little leverage if any. Theta decay isn’t a problem. If he’s getting $169 per share plus (let’s pretend infinite volatility) that would only be a $12 bonus over the $169, and it’s that $12 that’s being effected by theta decay. Ie, no big deal. He may as well just be holding shares at this point.