I agree with you... There is a (small) risk the stock goes to $1,000 or $5,000. My portfolio won't face any margin calls even with those numbers though... And eventually the price will come back down.

I think it was Ben Graham who said the markets can remain irrational longer than you can remain solvent.

Nope. It's usually ascribed to J M Keynes, buy apparently it was actually one A. Gary Shilling: https://quoteinvestigator.com/2011/08/09/remain-solvent/

Eventually it will come down, yes. But you're the option seller, so you can be assigned anytime. I assume this is a naked call you sold (not covered). So you might be forced to buy shares at a really high price and deliver at $320. The big risk with selling options is early assignment.

Option sellers eat like birds and go to the bathroom like elephants.

I agree, I put in a market order to close the position last night and it filled at market open, so I am safely out.

Maybe OP thinks it literally can't go tits up?

No you'll just get assigned and lose $500k.

Just buy an lower priced call as a hedge to define your risk. If you get assigned you could land a pile of GME that goes to zero.

No one is dumb enough to sell a call. Apparently we found one guy.

Opening a spread would make you a ton of money for sure, but seems unlikely one would be sold.

That would give him a bull position and cost money, which probably is not what he had in mind.

Perhaps you mean he could buy a higher priced call.

> but if for some reason you have a repeat of today, you're out $20K plus

Can you expand on this? Why would they be on the line for $20k+ (or anything) after selling the option?

The option seller needs to buy the stock to deliver the shares when the option expires, so if the price continues rising their losses are unbounded (by contrast, their gains are bounded by how much they originally sold the option for).

> The option seller needs to buy the stock to deliver the shares when the option expires

Not just when the option expires. You can be assigned anytime after you sell an option.

Oh, but that depends on how you sell it?

Correct me if wrong, but my understanding with Robinhood is that you Sell to Close (by default anyway), which just goes back into the market. No further obligation?

You can buy or sell an option to open a position. If you want to buy it, you Buy to Open and Sell to Close.

If you sell an option, you Sell to Open. If you want to buy it back (at a profit/loss and you're not assigned), you Buy to Close which goes back into the market and closes your position. If you are assigned (i.e. the buyer of your option exercises his right to buy 100 shares at the strike price), you have no option other than to buy those shares at market price if you don't have any and deliver it to the option buyer.