Fastest way to lose an $1,000,000 account
- Thread starter qdz2
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Quote from qdz2:
Assuming you have an $1,000,000 trading account that can trade anything and your objective is to lose the money as quickly and consistently as possible. You cannot withdraw the money and spend it by other means. What would you do?
Why would you want to lose the money?? If it's for taxes send me PM and we can dicuss "losing it" but keeping most of it.
But, to answer your question. I would buy a million in way out of the money (the highest strick price available) short term call options on the S&P or OEX.
It's been a long time since I traded options but I believe there are expiring options for next Friday. Only please let me know, and I'll sell them to you.
The huge bid and ask gap on ES Futures Options is marvelous for losing money, in combination with their rapid time-decay.
But of course, using as much margin as possible is probably the very best way to lose more money than you have in the blink of an eye. With a million dollars you could trade about 400 ES contracts at a time with intraday margin, total value about 20 million dollars. Each tick the ES moved against you would cost you $20,000. You could go for broke if the ES moved 50 points.
But of course, using as much margin as possible is probably the very best way to lose more money than you have in the blink of an eye. With a million dollars you could trade about 400 ES contracts at a time with intraday margin, total value about 20 million dollars. Each tick the ES moved against you would cost you $20,000. You could go for broke if the ES moved 50 points.
Wait until Lundy gets off his shift at the supermarket, he'll give you the answer that you'll endorse.
(You never heard of a talking horse? Well listen to this: Iiiiiii am Mister Eddddddd)
Go right to the source, and ask the horse
Fund Gordon Gekko's account
Sorry, Gordo
That is assuming that you know which direction the market is going so that you can take the opposite side. Picking which direction the market is going, and betting against it, is just as difficult as betting with it. You could also double your money if the ES moved 50 points, making it twice as hard to lose your original $1,000,000.
This sounds like the treatment for a new movie about a guy trying to lose all his wealth as quickly as possible by finding an illiquid security or options market to blow it all on...Kind of like a twisted Brewster's Millions plot...
(Only problem is the guy cant figure out which way the market will go to make money, but he cant figure out which way the market will go to enable him to lose it as quickly as possible...In an effort to reduce his million dollar wealth in a weeks time, the trader buys a million dollars worth of OTM OEX calls and lo and behold they quadruple on him and he is now worth 4 million...Now he has even bigger problems!!!!....)
(Only problem is the guy cant figure out which way the market will go to make money, but he cant figure out which way the market will go to enable him to lose it as quickly as possible...In an effort to reduce his million dollar wealth in a weeks time, the trader buys a million dollars worth of OTM OEX calls and lo and behold they quadruple on him and he is now worth 4 million...Now he has even bigger problems!!!!....)