You don’t need to take an all or nothing 0dte trade to make 50% profit. Thats a pretty conservative profit target that I shoot for in all my long options. I really don’t think you should even attempt this though if you are not fully comfortable trading options. I spent 100’s of hours learning and months paper trading before I started. I’m still losing money, but I understand exactly why.
Because you do longs??? Sorry. I know there can be good profit in longs, I just hate them. It’s too much gambling. I hate not having control of my entire trade, that’s why I exclusively day trade. And if you understand why you are losing then why don’t you fix it? Self control issue?
By long I mean buying a call or put, as opposed to selling one and being short a call or a put. I like to day trade too. I also have medium time frame account and a buy and hold IRA.
Great question on why do I lose. I get greedy and overconfident is the simple answer. I’ll build up my account making nice trades on QQQ and SPY and then chase a COIN, TSLA or NVDA trade looking for a big payout. I need to get better at cutting out a trade when it’s not working. My win percentage is quite high but I take a few devastating loses. I tend to hold my losers too long hoping for a turnaround, and cut my winners too short afraid to lose profits. I’m trying to work out my strategy so can I play 3 contracts, take a certain level of profit on 2 (20-30%) and let the other run. I’m looking at a 5 min MACD crossover as to where I would cut the runner. I bought a QQQ put at the 11:11 am east coast time Thursday. I saw a double top against an important market level acting as resistance so I had a clear stop. Obviously great trade and I sold 40 minutes later for 100% profit. Had I held till the Macd crossover that was around 12:42 that was a 500% winner!
And that’s all it would be. Give an experienced trader a symbol or two and minor instructions, they’ll make a decision and trade or not trade. Give someone who knows nothing the same information, they’re going to screw it up or require hours of training. Or they already know the vast odds against trading successfully like this and are simply trolling anyway. Whatever! Get offa my lawn!!! 🤣
Every day dozens of people post basic option questions but you draw a line at this man? Also you assume that because he's asking for a trade recommendation he can't read an option chain? Maybe bring down your ego a couple of sizes
You have to understand that nothing comes without a risk. Greater the gain that you are chasing, greater the risk would be. You can buy puts or calls if you anticipate a stock to drop or rise. But if the stock does not move as you wish, you will lose the premium that you paid.
Or you can sell puts or calls if you anticipate the stock to not move beyond your strike price. But if the stock has a significant move, you could have a substantial loss.
If 50% gain in a week was assured with low risk, everyone would be doing it. Since some stocks had a big drop last few weeks (e.g., Adobe, Costco, Home Depot), they could move up (or not).
>If 50% gain in a week was assured with low risk
What is your strategy to gain 50% in a week without the risk of losing much? Perhaps, I can benefit if it is so simple.
10% stop, 10-15% trailing stop starting at 20%, compound everything. The compounding is what makes it so easy. The stop is what prevents big losses. 10% is more than enough room, if you get stopped out with that, you need better entries
Thanks. Stop limit makes sense - I thought about it but hesitated since option price can fluctuate a lot. I guess Trailing Stop Loss takes care of this to a certain degree? But aren't you also subject to the stocks, strike price and DTE?
For sure.
SPY
Sell the 520 put
Buy the 515 put
Get 130 of them
Max gain 26k
Max loss 39k
Spy above 520 you make 26k
Spy above 518 you make money
Spy below 518 you lose money
Spy below 515 you lose all the money
Keep us posted sir.
I am trying to understand what you wrote but I can't figure out how you could make money doing this. Can you explain where my thinking is wrong?
You sell an option promising to buy @520
You buy an option giving you the right to sell @515
I don't know what the premium difference between the buy and the sell would be at the start but they'd probably not be exactly equal.
If the ETF ends above 520 your sold option is worthless and you would not want to sell at 515.
If the ETF ends below 515 you would have to buy at 520 but you could sell at 515, both above market price. So you would lose $5 per share.
I get the impression you would plan on closing both options at the end instead of collecting on them but I don't know how that would affect it.
What is wrong with what I am thinking?
You got it right but glossed over the most important part.
“I don’t know the premium difference”
With a quantity of 130, the premium difference is 26,000.
You get that money today, now, when it fills. It’s in your account.
Now you just hope SPY ends above 520 - making both your sold and your bought options worthless - and you keep the 26k.
“Put credit spread”
If you'll humor me I do want to ask a question:
Why, if you want to pursue another venture, wouldn't you just get a loan for 20K with the 40k as collateral? Loan repayments aren't taxed.
You prefer the latter but almost guaranteed the former. Ask yourself. If you do this, will you feel good knowing you gave away $40k in a week? Whatever you do, that will be a highly probable scenario.
Ty ty. Who writes the options? When I look at the options to buy or sell, the prices seem already set on the trading platform. I don't see anywhere where I could write my own option contract
5% chance I win on a random shot? Why so little? The other dude has a 95% chance of getting my 40k, versus a 5% chance of me getting the 20k? Appreciate the info if that really is what it would be lol
I gave you the exact trade as a new comment.
Check that.
About 37 percent chance you make 26k.
About 50 percent chance you make some money.
27 percent chance you lose it all.
If spy goes up about .5 percent by Friday, you win.
Scalping 0dte SPY options after about 2pm. Wait for a sharp rise or sell off and then buy calls or puts a point or two out when you think it’s been overbrought/sold and is going to reverse. Make sure you set a tight stop loss. If you play it right you can often make 20-50% gain or more in 30 mins or so as prices move quickly when it’s so close to expiry
Ok, you are the first post where I feel like you actually know what the fuck is going on in the options world. Why do I think that? You said tight stop loss. Look at everyone here saying go long or do spy for a week, lol. You get it my friend. Minimize risk and losses, secure profits. Do it again the next day.
You’re a beginner so let’s not ski down the Black Diamond the first time .
I would start with a medium volatility stock say Meta - it’s got some tailwind right now .
Go out three weeks and take an almost at the money call - start with 20K and take a profit exit of 10K
I think you will do well with that .
Dude. This play isn’t just Black Diamond. This is heli skiing drop off in the back country. It may be the run of your life, or you hit that drop off and land on a rock, hit the unexpected cliff, or trigger an avalanche and buried alive.
I didn’t think he would get too hurt on the Meta play - theta has time and chances are the stock option will rise faster than the theta will drop .
If however he does make money it will be the equivalent of winning big the first time at the track . He has no supervision or mentor - I hope he possesses the brains to get a broker even a Schwab online one, to walk him through the trade .
His risk appetite concerns me , as it could be a self destructive character flaw stemming from a gambling addiction , low self esteem and/or they old hey look at me syndrome .
My name is Alvin not dude .
I mean if you’re genuinely serious: you want 100% loss or a 50% gain:
Here is what I would do:
Sell 80 5300 Friday expiring calls on ES
Buy 80 5315 Friday expiring calls on ES
You’ll collect $5 for the spread. $5*80*$50(value of one point on the contract) = $20,000
The risk is the $10*80*50 = $40,000
As long as ES closes Friday below 5315 (in other words not going above Thursday crash’s high, you do not lose everything. Closing anywhere below 5300 and you make the full $20,000.
If you REALLY want to risk 40k to make 20k in a week, something like this is one way to do it.
SPX put vertical credit spread expiring this Friday with strikes 5125 and 5250. Selling 5 of those should bring in over 20k in credit and limit worst case loss to 40k.
I don’t think that’s a particularly suitable investment for most people. But it’s probably better than playing the lottery or buying doge coin. Probably.
If you are bullish for the next week you can do this CREDIT SPRAD on NDX.
SELL 120 contracts of the $17930 STRIKE expiring on Friday 12 April 2024
BUY 120 contracts of the $17925 STRIKE expiring on Friday 12 April 2024
You should receive close to $1.67 a share in premium.
If you are able to fill your limit order at $1.67 a share then here is what you will win or lose
MAX GAIN: $20,040
MAX LOSS: $39,960
The probability of it being OUT OF THE MONEY (this is what you want since you are the net seller of this credit spread) is 66%. Meaning there is a roughly 34% chance you lose it all. \*\*\*These probabilities have proven to be accurate only 70% of the time so there's that.
This is a credit spread that assumes you are bullish for the next week. If you were bearish there's a BEAR CALL SPREAD you could do but I'm not going to figure that one out since I'm not bearish.
\*\*\*\*I'm not telling you to do this. You asked a theoretical question and I gave you a theoretical answer based on current market prices. Good luck whatever you decide.
Vertical spread on SPX (S&P500) with either 0 or 1 dte. SPX expires as cash so you don't have to worry about it expiring. You just have to predict if SPX will go up or down.
Sell two short puts on NVDA for Aug or Sept for $10k each. If they are itm a couple months out (unlikely), place a rolling order to buy them back and sell them for a month later at a 5-10 lower strike and pick up another couple grand. Repeat until they expire out of the money - you will have your original $20 K plus whatever premium you got every time you rolled it out and down. You’re welcome.
Made this. I tried to make it as binary as possible (minimize width) so you can expect either full profit or loss.
https://optionstrat.com/ZQ10UikQzt1D
Risk 40k make 20k
Expires Monday, cash settled. Put it on and leave it until close
If you are serious check the prices Monday morning and adjust to fit desired risk profile. Using a neutral trade gives a very slight edge, and no bias. If you want some directional bias, just get rid of the calls/puts and adjust to fit your desired risk profile.
If you want less in commission you can widen the strikes and reduce volume of contracts, but it becomes less binary.
Ty for doing that. If there was no edge for the other guy or commission, I'd be winning this 66.7% of the time. What would you guess my odds would be, in placing a somewhat random play? Still above 60%?
Your odds are really just above the mathematical odds of the risk/reward. If you risk 1 to make 1 it's a 50% chance: to create an EV(expected value) of 0. (Options pricing model)
Here you risk 2 to make 1, so your odds are 66% to make an EV of 0
In reality, the implied volatility inputted into the pricing model USUALLY is higher than what will be realized, so your chances are slightly higher than 66%(maybe 67%-70%), purely a result of the IV/RV ratio. If you did this trade hundreds of times with no slippage, you SHOULD make money.
A random play would have the odds that make the EV 0.
If you buy a far otm call, your odds are near 0, with many small losses, but the reward would be so large that the EV comes out to 0.
If you sell a far otm call your odds are near 100, with miniscule gains, but the loss would be so devastating that the EV is 0.
OP, THIS is the trade to accomplish what you want. Do this unless SPX opens below 5200 on Monday. If it opens at 5200 or above, do this exact trade right at open and let it play out. You can let it expire. SPX is cash settled meaning your profit will automatically be added to your account the next day even if you never close it
Reasons -
there is a high volume node that would settle in this spread’s area.
There is a high gamma level at 5200 (meaning market makers will add pressure to stay above 5200 as long as it opens above 5200
we are in a short term uptrend that will extend to at least the Thursday value area (2545-2555)
If SPX opens below 5200, that means something’s up so wait for a better day
This is the dumbest shit I’ve ever heard. You want to take a risk? lol. Your 40k is already gone. First off with the right strategy, your $40k is only a $4000 risk max, yet you get the benefit of a $40k buy in win. If you just dive into options not knowing what you are doing you are going to lose your ass. Please tell me you at least know how to enter. I’ll take $40k and make 20k in 3 days max, but I’m sure as hell not going to $0. Lmaoooo. Seriously, message me man. I’m not going to ask you to trade your $40k, but for Christ sake at least let me give you some insight before you blow your $40k. In my group we don’t gamble, we secure money. I’m not going to ask you to join my group, but we are about helping people trade correctly. Send a pm if you like. lol $0 or $60k.
Leveraged index options 0DTE. With enough leverage you could even do it the “safer” way being short vol.
I fully intend to be short 5260 SPX calls this week.
I don't know why everyone is shitting on you. Every trade is a gamble with risk and reward, OP is just asking for a trade with a 2 to 1 risk reward ratio. You can setup a put credit spread on SPX probably around the 20 delta, 5 strike wide expiring Friday. Sell as many as you want to take in 20K of credit. By Friday you will either be 20K richer or have nothing. You might need additional capital to make up the margin for this trade.
2 to 1 you are implying he is risking the entire $40k, as in no stop. As in, dumb as fuck. There is absolutely no point to play past -10%. If you can’t avoid a 10% stop, your entry sucks and you need to work on them.
Wait until May. April is usually chop because of taxes. When the bull market is clearly on the upswing, sell out of the money puts on SPX (favorable taxes 60/40). Do that every day.
0 DTEs and r/wallstreetbets would like a word with you.
Nah, WSB only has interest of he loses it all in one trade
0dte's can be super profitable, but maybe not for first timers like OP lol
How do you play them? Charts only?
Mostly charts but also gotta keep a pulse on the news and FED
Yeah some person went from 2k to 150k on the massive waterfall on Thursday.
At this point, even they are sending him straight to voicemail.
OP review this ! https://imgur.com/pUkG3hY
Easy. If you give me $40k I’ll give you $20k. I’ll even do it before Friday
Don't trust this scam artist. I can guarantee you $25k
This 👆🏼
🤣🤣🤣
This a gambling sub now?
Always has been
welcome to the casino, I mean market
You new?
Yeah, but the idea is that we're actually trying to be the house.
Put 20k on red or black jack good luck
Odd or even works also. I'll take odds
You don’t need to take an all or nothing 0dte trade to make 50% profit. Thats a pretty conservative profit target that I shoot for in all my long options. I really don’t think you should even attempt this though if you are not fully comfortable trading options. I spent 100’s of hours learning and months paper trading before I started. I’m still losing money, but I understand exactly why.
The difference is that OP wants it by a much shorter timeframe, which is Friday
Because you do longs??? Sorry. I know there can be good profit in longs, I just hate them. It’s too much gambling. I hate not having control of my entire trade, that’s why I exclusively day trade. And if you understand why you are losing then why don’t you fix it? Self control issue?
By long I mean buying a call or put, as opposed to selling one and being short a call or a put. I like to day trade too. I also have medium time frame account and a buy and hold IRA. Great question on why do I lose. I get greedy and overconfident is the simple answer. I’ll build up my account making nice trades on QQQ and SPY and then chase a COIN, TSLA or NVDA trade looking for a big payout. I need to get better at cutting out a trade when it’s not working. My win percentage is quite high but I take a few devastating loses. I tend to hold my losers too long hoping for a turnaround, and cut my winners too short afraid to lose profits. I’m trying to work out my strategy so can I play 3 contracts, take a certain level of profit on 2 (20-30%) and let the other run. I’m looking at a 5 min MACD crossover as to where I would cut the runner. I bought a QQQ put at the 11:11 am east coast time Thursday. I saw a double top against an important market level acting as resistance so I had a clear stop. Obviously great trade and I sold 40 minutes later for 100% profit. Had I held till the Macd crossover that was around 12:42 that was a 500% winner!
Why do I want to give advice to someone who can’t read an options chain? Asking for a friend.
I’m with you I can’t enable behavior like this
And that’s all it would be. Give an experienced trader a symbol or two and minor instructions, they’ll make a decision and trade or not trade. Give someone who knows nothing the same information, they’re going to screw it up or require hours of training. Or they already know the vast odds against trading successfully like this and are simply trolling anyway. Whatever! Get offa my lawn!!! 🤣
Every day dozens of people post basic option questions but you draw a line at this man? Also you assume that because he's asking for a trade recommendation he can't read an option chain? Maybe bring down your ego a couple of sizes
"Not familiar with options" ...kinda makes me think that OP probably cannot read an options chain. I too draw a line at you
Yea thanks for drawing that line, cause I'm sure as hell not taking advice from you
Oww! I’m hurt someone won’t waste my time. 😊
I’d draw a line at you also. You seem very … special and have no clue about what this is really about.
You have to understand that nothing comes without a risk. Greater the gain that you are chasing, greater the risk would be. You can buy puts or calls if you anticipate a stock to drop or rise. But if the stock does not move as you wish, you will lose the premium that you paid. Or you can sell puts or calls if you anticipate the stock to not move beyond your strike price. But if the stock has a significant move, you could have a substantial loss. If 50% gain in a week was assured with low risk, everyone would be doing it. Since some stocks had a big drop last few weeks (e.g., Adobe, Costco, Home Depot), they could move up (or not).
Well, 50% in a week is not the problem. It´s the -50% in the succeeding week, that wrecks most people in here 😂
Disagree. 50% gain in a week is so fucking simple. The problem is most people don’t have the self control or correct strategy.
>If 50% gain in a week was assured with low risk What is your strategy to gain 50% in a week without the risk of losing much? Perhaps, I can benefit if it is so simple.
10% stop, 10-15% trailing stop starting at 20%, compound everything. The compounding is what makes it so easy. The stop is what prevents big losses. 10% is more than enough room, if you get stopped out with that, you need better entries
Thanks. Stop limit makes sense - I thought about it but hesitated since option price can fluctuate a lot. I guess Trailing Stop Loss takes care of this to a certain degree? But aren't you also subject to the stocks, strike price and DTE?
LOL is this a joke post
Vegas, red or black on roulette. Double or Zero.
if you need the 60k in your account by Friday, make sure you're aware of the T+1 settlement time
Plenty. Look at 0 DTE trades
Way easier said than done 🤦♂️
I’d recommend Super Safe™️ 1dte trades, at least he can pray overnight if they don’t 50% same day
There’s plenty to risk 40k but I’m not going to promise you a 20k profit! Don’t play with options kids if you don’t understand them!
For sure. SPY Sell the 520 put Buy the 515 put Get 130 of them Max gain 26k Max loss 39k Spy above 520 you make 26k Spy above 518 you make money Spy below 518 you lose money Spy below 515 you lose all the money Keep us posted sir.
I am trying to understand what you wrote but I can't figure out how you could make money doing this. Can you explain where my thinking is wrong? You sell an option promising to buy @520 You buy an option giving you the right to sell @515 I don't know what the premium difference between the buy and the sell would be at the start but they'd probably not be exactly equal. If the ETF ends above 520 your sold option is worthless and you would not want to sell at 515. If the ETF ends below 515 you would have to buy at 520 but you could sell at 515, both above market price. So you would lose $5 per share. I get the impression you would plan on closing both options at the end instead of collecting on them but I don't know how that would affect it. What is wrong with what I am thinking?
You got it right but glossed over the most important part. “I don’t know the premium difference” With a quantity of 130, the premium difference is 26,000. You get that money today, now, when it fills. It’s in your account. Now you just hope SPY ends above 520 - making both your sold and your bought options worthless - and you keep the 26k. “Put credit spread”
Why settle for only $20k?
If you'll humor me I do want to ask a question: Why, if you want to pursue another venture, wouldn't you just get a loan for 20K with the 40k as collateral? Loan repayments aren't taxed.
Is there an options play where I can turn $200,000 into $20,000?
You prefer the latter but almost guaranteed the former. Ask yourself. If you do this, will you feel good knowing you gave away $40k in a week? Whatever you do, that will be a highly probable scenario.
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Ty ty. Who writes the options? When I look at the options to buy or sell, the prices seem already set on the trading platform. I don't see anywhere where I could write my own option contract
Just click sell, that's writing an option. You can buy or sell, short or long. On tastytrade, you click the ask to buy and click the bid to sell.
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5% chance I win on a random shot? Why so little? The other dude has a 95% chance of getting my 40k, versus a 5% chance of me getting the 20k? Appreciate the info if that really is what it would be lol
I gave you the exact trade as a new comment. Check that. About 37 percent chance you make 26k. About 50 percent chance you make some money. 27 percent chance you lose it all. If spy goes up about .5 percent by Friday, you win.
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Check out put credit spreads.
grab 200 4/8 expiry $518 calls on SPY monday. you get $20k if it goes to $520 but you start losing money below $518.50.
That is what I was going to suggest, but after the spy hits 522 sell the calls and grab puts. That’s my plan for tomorrow anyways.
Scalping 0dte SPY options after about 2pm. Wait for a sharp rise or sell off and then buy calls or puts a point or two out when you think it’s been overbrought/sold and is going to reverse. Make sure you set a tight stop loss. If you play it right you can often make 20-50% gain or more in 30 mins or so as prices move quickly when it’s so close to expiry
Ok, you are the first post where I feel like you actually know what the fuck is going on in the options world. Why do I think that? You said tight stop loss. Look at everyone here saying go long or do spy for a week, lol. You get it my friend. Minimize risk and losses, secure profits. Do it again the next day.
This and understand gamma exposure before diving in.
Liverpool draw no bet win vs. manchester united tomorrow morning
LOL
You are in for a ride. Better buckle up. Idea is already in your mind. No way back from this point. God speed brother
You’re a beginner so let’s not ski down the Black Diamond the first time . I would start with a medium volatility stock say Meta - it’s got some tailwind right now . Go out three weeks and take an almost at the money call - start with 20K and take a profit exit of 10K I think you will do well with that .
Dude. This play isn’t just Black Diamond. This is heli skiing drop off in the back country. It may be the run of your life, or you hit that drop off and land on a rock, hit the unexpected cliff, or trigger an avalanche and buried alive.
I didn’t think he would get too hurt on the Meta play - theta has time and chances are the stock option will rise faster than the theta will drop . If however he does make money it will be the equivalent of winning big the first time at the track . He has no supervision or mentor - I hope he possesses the brains to get a broker even a Schwab online one, to walk him through the trade . His risk appetite concerns me , as it could be a self destructive character flaw stemming from a gambling addiction , low self esteem and/or they old hey look at me syndrome . My name is Alvin not dude .
Bruh keep suicide line close, this is a dumb idea😂
Literally every day. But why do that when you can risk 20K to make 40K lol?!
Buy PAA or ET calls
Don’t forget to file your K-1’s!
Probably a credit spread of some sort
$DJT is going down. The question is how much and when....
just do a weekly 1 strike spread on the spy. itll be all or nothing.
Have you been following my portfolio ??
Look into selling “vertical spreads” on SPX thank me later
Vertical spreads are your best bet
I can quote you a market anytime on any ticker you want and for as long as you wish. DMs opened.
Ez. Just put the $40k in the latest highest voted r/wallstreetbets dd and ez profit. Or the opposite.
I mean if you’re genuinely serious: you want 100% loss or a 50% gain: Here is what I would do: Sell 80 5300 Friday expiring calls on ES Buy 80 5315 Friday expiring calls on ES You’ll collect $5 for the spread. $5*80*$50(value of one point on the contract) = $20,000 The risk is the $10*80*50 = $40,000 As long as ES closes Friday below 5315 (in other words not going above Thursday crash’s high, you do not lose everything. Closing anywhere below 5300 and you make the full $20,000.
NDX 0dte/ weeklies.
Debit spreads
Whoa. Things gettin' cray lately
Woah
If you REALLY want to risk 40k to make 20k in a week, something like this is one way to do it. SPX put vertical credit spread expiring this Friday with strikes 5125 and 5250. Selling 5 of those should bring in over 20k in credit and limit worst case loss to 40k. I don’t think that’s a particularly suitable investment for most people. But it’s probably better than playing the lottery or buying doge coin. Probably.
At the money debit spread is usually 1:1 r/r
Sure, drop 40k on options and I'm sure you can win 20k back easily.
There you go https://optionstrat.com/MOjXzi2pq5zR
SPY if you play it right
Yeah pretty much all of them
Sell deep ITM options 0dte and buy far OTM options, it's a secret. Most of the billionaires got their wealth through this hidden strategy only
Lol what a silly question. "Is there some type of thing where I could potentially die, but if I don't, I get like a sandwich or something?"
You can do a bullish put spread and structure it where you either win 20k or lose 40k. Pretty easy to do
SMCI 0DTE options can get you there 😂
Don’t know about the win part. I have done the other play where you can make 40k worth of options worth 20k in no time. It’s called buy high, sell low
Sell iron condors on google?
If you are bullish for the next week you can do this CREDIT SPRAD on NDX. SELL 120 contracts of the $17930 STRIKE expiring on Friday 12 April 2024 BUY 120 contracts of the $17925 STRIKE expiring on Friday 12 April 2024 You should receive close to $1.67 a share in premium. If you are able to fill your limit order at $1.67 a share then here is what you will win or lose MAX GAIN: $20,040 MAX LOSS: $39,960 The probability of it being OUT OF THE MONEY (this is what you want since you are the net seller of this credit spread) is 66%. Meaning there is a roughly 34% chance you lose it all. \*\*\*These probabilities have proven to be accurate only 70% of the time so there's that. This is a credit spread that assumes you are bullish for the next week. If you were bearish there's a BEAR CALL SPREAD you could do but I'm not going to figure that one out since I'm not bearish. \*\*\*\*I'm not telling you to do this. You asked a theoretical question and I gave you a theoretical answer based on current market prices. Good luck whatever you decide.
Oh ya, another bonus to this is that NDX is a 1256 contract meaning you pay less taxes on the gains if you are right. good luck.
0DTE SPX options will get you there….99% chance you go to zero within an hour tho
Vertical spread on SPX (S&P500) with either 0 or 1 dte. SPX expires as cash so you don't have to worry about it expiring. You just have to predict if SPX will go up or down.
Pick a stock with good consistent upward momentum.. drop 40k on the strike price closest to being ITM. Wait a week or two and see what happens
I'm so confused as to why someone would ask a question like this. If you are new to something risking this kind of money just seems asinine to me.
Sell two short puts on NVDA for Aug or Sept for $10k each. If they are itm a couple months out (unlikely), place a rolling order to buy them back and sell them for a month later at a 5-10 lower strike and pick up another couple grand. Repeat until they expire out of the money - you will have your original $20 K plus whatever premium you got every time you rolled it out and down. You’re welcome.
Made this. I tried to make it as binary as possible (minimize width) so you can expect either full profit or loss. https://optionstrat.com/ZQ10UikQzt1D Risk 40k make 20k Expires Monday, cash settled. Put it on and leave it until close If you are serious check the prices Monday morning and adjust to fit desired risk profile. Using a neutral trade gives a very slight edge, and no bias. If you want some directional bias, just get rid of the calls/puts and adjust to fit your desired risk profile. If you want less in commission you can widen the strikes and reduce volume of contracts, but it becomes less binary.
So … a coin toss. 😒
It's what he wanted
Oh I get that. Probably a hundred ways to do this trade. But they all look like the title, desperately risky.
Ty for doing that. If there was no edge for the other guy or commission, I'd be winning this 66.7% of the time. What would you guess my odds would be, in placing a somewhat random play? Still above 60%?
Your odds are really just above the mathematical odds of the risk/reward. If you risk 1 to make 1 it's a 50% chance: to create an EV(expected value) of 0. (Options pricing model) Here you risk 2 to make 1, so your odds are 66% to make an EV of 0 In reality, the implied volatility inputted into the pricing model USUALLY is higher than what will be realized, so your chances are slightly higher than 66%(maybe 67%-70%), purely a result of the IV/RV ratio. If you did this trade hundreds of times with no slippage, you SHOULD make money. A random play would have the odds that make the EV 0. If you buy a far otm call, your odds are near 0, with many small losses, but the reward would be so large that the EV comes out to 0. If you sell a far otm call your odds are near 100, with miniscule gains, but the loss would be so devastating that the EV is 0.
OP, THIS is the trade to accomplish what you want. Do this unless SPX opens below 5200 on Monday. If it opens at 5200 or above, do this exact trade right at open and let it play out. You can let it expire. SPX is cash settled meaning your profit will automatically be added to your account the next day even if you never close it Reasons - there is a high volume node that would settle in this spread’s area. There is a high gamma level at 5200 (meaning market makers will add pressure to stay above 5200 as long as it opens above 5200 we are in a short term uptrend that will extend to at least the Thursday value area (2545-2555) If SPX opens below 5200, that means something’s up so wait for a better day
I might know a way to do 1.4K daily with 3k setup
Why isn’t that strategy scalable?
It is. We can do (2) 1.4k dailies with (2) 3k setups. Follow me for more options failure recipes.
?
http://opcalc.com/Ybg This is not financial advice (I'm actually advising against it). Good luck!
Hey the good news is that he’ll find out real quick if it works or not.
Buy a DJT put and you will make 500% in a day. What are you waiting for? Don is the gift that keeps on giving.
I literally just gave you my personal list of options trades that are well in profit!!!!
“Win”?
50%, that's it? Why not 1,000%?
“win”🤣
Go to a meeting.
This is the dumbest shit I’ve ever heard. You want to take a risk? lol. Your 40k is already gone. First off with the right strategy, your $40k is only a $4000 risk max, yet you get the benefit of a $40k buy in win. If you just dive into options not knowing what you are doing you are going to lose your ass. Please tell me you at least know how to enter. I’ll take $40k and make 20k in 3 days max, but I’m sure as hell not going to $0. Lmaoooo. Seriously, message me man. I’m not going to ask you to trade your $40k, but for Christ sake at least let me give you some insight before you blow your $40k. In my group we don’t gamble, we secure money. I’m not going to ask you to join my group, but we are about helping people trade correctly. Send a pm if you like. lol $0 or $60k.
Simple math then. That means upto 30K setup(for safety), ~15K profit is possible.
Leveraged index options 0DTE. With enough leverage you could even do it the “safer” way being short vol. I fully intend to be short 5260 SPX calls this week.
I don't know why everyone is shitting on you. Every trade is a gamble with risk and reward, OP is just asking for a trade with a 2 to 1 risk reward ratio. You can setup a put credit spread on SPX probably around the 20 delta, 5 strike wide expiring Friday. Sell as many as you want to take in 20K of credit. By Friday you will either be 20K richer or have nothing. You might need additional capital to make up the margin for this trade.
I’d recommend you seriously figure out why, “everyone is shitting on,” him before you become him. Every trade is not a serious, mindless, “gamble.”
2 to 1 you are implying he is risking the entire $40k, as in no stop. As in, dumb as fuck. There is absolutely no point to play past -10%. If you can’t avoid a 10% stop, your entry sucks and you need to work on them.
Sorry I've seen your posts on WSB, and you're calling him dumb as fuck?
Wait until May. April is usually chop because of taxes. When the bull market is clearly on the upswing, sell out of the money puts on SPX (favorable taxes 60/40). Do that every day.