Best options strategy for a 1 or 2 dollar gain within 5 days ?

What about a synthetic? It will move dollar for dollar with the stock and the margin is substantially less.

BUT if you are in such a trade only for a day or two, you had better pick a high priced, liquid stock like AMZN. Otherwise the bid-ask spreads will kill you.
 
Quote from alexandercho:

Lol Chucky is basically referring to a strangle, and within the time frame it does make sense. As long as Amazon continues to be as volatile.
More...

I don't think so, a strangle deep in the money doesn't make sense. Chuckybrown70 must have found the holy grail with all the secrecy and preferring PM's for communication, Range Rover is going to get good private mentoring. Lucky guy :D
 
Quote from alexandercho:

Lol Chucky is basically referring to a strangle, and within the time frame it does make sense. As long as Amazon continues to be as volatile.
More...

No, chuckybrown is not referring to a strangle. If you look closer chuckybrown wrote "puts or calls" not "puts and calls".
 
Ah I get it the reason he mentions buying a deep out of the money that has .05 premium. Is because you can sell it later for .10-20 for a decent profit if ti does move in that direction. If you lose you're maximum downside is 100% maximum upside is anywhere from 300-10,000% it's no big secret. I figured that one out a long time ago.
 
Quote from chuckybrown70:

[the way to play it is buy deep in the money puts or calls. in the closest month. you will see the premium is the lowest there. probably only a nickle. the delta is close to 100, but if the trade goes against u, u dont lose 1 : 1 u lose less, and if it goes for you, u will gain close to 1:1.
More...
If it has a delta of 1.0 and makes 1:1 to the upside then it's going to lose 1:1 to the downside, especially for the criteria of AMZN moving 1-2 pts up or down in the next few days as posed by the OP.

The highest strike AMZN call with a delta of 1.0 will lose maybe $9.75 for the first 10 pts of drop. So technically, you're right. It will lose "less" than 1:1 but not much less than that ratio :)

And FWIW, the lower the IV, the more an underlying can drop before the loss ratio gets away from 1:1
 
Quote from alexandercho:

Chucky is basically referring to a strangle, and within the time frame it does make sense. As long as Amazon continues to be as volatile.
More...
As MTE pointed out, Chucky was not referring to a strangle. If he were, it would be a horrible (losing) choice in the OP's context of a short term 1-2 pt move up or down.
 
Quote from chuckybrown70:



the way to play it is buy deep in the money puts or calls. in the closest month.

More...



How deep?If I was buying AMZN today at the open exactly which call option would you buy ?
 
Quote from chuckybrown70:

surprised there is no str forward answer, so i will help, but in return i want u to pm me your picks so i can see how they do.... agreed?
More...

PM sent
 
Quote from Range Rover:

How deep?If I was buying AMZN today at the open exactly which call option would you buy ?
More...


As deep as the delta of the option falls within the 85-95 range
 
You must log in or register to reply here.
Back
Top