Message from @ThisIsChris
Discord ID: 396065970034311168
If you get one or two more people to join that would be even better @Deleted User
@ThisIsChris Options are a lot of fun. I usually buy puts on stocks I think will bomb on earnings.
Here's a leverage story you might like:
in early summer 2015, I read an article about how Chinese peasants were double-mortgaging their properties to buy into the stock market
there were makeshift "stock cafes" being set up where they could come in and buy stock.
I saw this as a once-in-a-lifetime opportunity to make an obvious play
There's an ETF called YANG
it's a 3x leveraged bear fund for the broad Chinese stock market
Oh yeah YING and YANG lol
so if the chinese market goes down 1%, it's engineered to increase 3%
yeah, exactly
So I bought a couple thousand worth of OOM call options on it
oh god, 3x ETF, in an options story...
😃
worked out pretty well
Wow, I have to call no homo and no schlomo, but that's really awesome
I could have held on a few more weeks, but I was very happy with the return
opportunities like that don't come around very often .I was lucky enough to read the right news article
I was lucky it tanked so quickly too. If I had been off on my timing it would have been a washout
sometimes things work out!
I love those complex strategies though
it's fun to see them mapped out in thinkorswim
I haven't seen a good opportunity for one yet. I usually keep it simple-minded.
Yeah I love looking at charts showing payoffs evolve in time, and how they start off in these weird smooth shapes that slowly converge to rigid slopes
Yes!
Can you tag me if you're making an interesting trade? I'd at least like to follow along. I might jump in too if I understand it enough to make an informed decision.
Yeah dude I definitely will, please do likewise!
I understand the fundamentals, but I don't spend enough time digging into opportunities
you bet!
Yeah that's a New Years Resolution of mine is to research opportunities. Past year I've just been doing things around earning season on FAAAMNNG or covered calls on SPY. I had more time to research this stuff a few years ago and looking to get back into it more
The YANG trade I mentioned earlier ^^^
dude that's so awesome
Covered calls are fun
Great way to make your blue chips do a little extra work
Yeah I usually sell slightly OTM SPY calls expiring the next wednesday or Friday
I only have enough shares to sell one, so it's basically me picking pennies off the floor
So it's still worth it even after the transaction fees?
Yeah I can usually get 30-40 bucks out of it after commissions, per trade
not bad