2014 option challenge

Should I buy deep OTM spy call?

  • Yes do it

    Votes: 13 61.9%
  • You're nuts

    Votes: 8 38.1%

  • Total voters
    21
  • Poll closed .
http://www.optionsprofitcalculator.com/calculator/long-call.html

a 30% SPY year isn't likely, but a 15-20% year is likely

The last time the S&P had a 34% year in 1995, it was followed by a 20% year in 1996 and a 30% year in 1997.

If it does go up 20% then you can make a 2100%-800% return depending on time decay. It's a good bet considering we're in mid-cycle right now.

Don't buy it now, though, because the market seems to be correcting itself from the october-december rally. Wait for a better price.
 
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