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A few weeks ago, I spent $730 to buy 73 SPY put option contracts expiring this Friday with a strike of $270, so about 10 cents per share. Unbelievable. I've bee
by senordevnyc 7y ago
A few weeks ago, I spent $730 to buy 73 SPY put option contracts expiring this Friday with a strike of $270, so about 10 cents per share. Unbelievable. I've been selling them over the last week and just finished getting out today with a realized gain of about $30k.
Wish I had put $50k in instead of $1k, but I suppose that's always the lament when an ultra-risky trade goes your way :)
- idclip 7y agoTeach me your ways. Literature ?
- ouid 7y agoIf the news says "China puts 760 million people on travel restrictions", you should look at the price of puts.
- senordevnyc 7y agoThis. It was really just insurance. I fully expected the $1k I bought to expire worthless, and the first $230 did, but these ones I was able to exit for a nice profit. I highly suspect the expected value of options trading is negative, but it's useful as a hedge. Really wish I could spend like 10% of my salary on put options for my employer in case I get laid off, but it's forbidden apparently.
- jliptzin 7y agoInsurance by definition is negative expected value (otherwise insurance companies wouldn't be in business). Great job hedging!
- LegitShady 7y agoreddit wallstreetbets obviously
- senordevnyc 7y agoActually no...I hadn't ever visited before a few days ago :)