Gotta love ZERO RISK in the SP500 = $$$

[Nine_Ender]

If you shorted those six figures with SPX put options today around 9:50am and closed out at around 11:30am...you would have cashed out very nicely on that trade.
You would be the King for a Day at WallStreetBets. All hail Caaaaaaaaaal-- - Hooooooooun.

And if he'd been buying options on most of his directional calls the last year or so he would have been slammed hard dozens of times and wonder what hit him.

 

[KCalhoun]

And if he'd been buying options on most of his directional calls the last year or so he would have been slammed hard dozens of times and wonder what hit him.

True... I have a hard time believing how much the market rallied during the biggest global pandemic crisis in our lifetime. It just didn't add up. Millions dying and the stock market skyrocketed. Perfect example of "cognitive dissonance".

I still think a big selloff could happen. I'm better at simply daytrading vs predicting market direction. Like hafez said, trade what you see, not what you think.

Lesson learned: do what I know, which is simply daytrading, vs trying to figure out market direction. The fed propped it up, it's a bubble, house of cards.

 

[SunTrader]

It has nothing to do with the rollover. By your logic, the Dec contracts should all be up as the rollover occurs.

Well...

Here's September.

View attachment 267705

Here's December...

View attachment 267706

Hmmm! Look at all those longs!

Did it not occur to you that Biden's vaccine mandate announced after market close yesterday is causing everyone involved in the market to consider how the mandates on publicly-traded companies with more than 100 employees may impact their bottom line for the next year? Unemployment possibilities, health-care costs, etc etc all that fundamental shit?

Well, at least we know that Powell is not just going to coo like a dove, he's actually going to mutate into one at the September meeting after that Biden stunt.

31 X earnings have nothing to do with no, no, not at all.

A silly unenforcable, probably struck down by the courts, "mandate"

 

[SunTrader]

Yes yes yes, we've all seen the Knish scene in Rounders.

K, so let me ask you the most basic of all options questions. The most basic, so basic that it would spontaneously ignite destriero's hair on fire.

Let us say that NQ is at 15000 and I go long 1 contract, TODAY. I believe that from this point forward, the NQ will rise and I am willing to give it until middle of December to rise to 15200.

So I buy a future and set my target at 15200. The shit drops a thousand points or whatever, but eventually gets back to my entry, and hits 15200 in a month from my entry.

So now how I would achieve this performance in an option? In your scenario, I would buy an ATM call option at 15200 strike that will expire in middle of December.
....

Return is calculated (either case futures or options) by how much money (margin) is expended up front versus return when trade is closed out - if right.

Options are more cost efficient, most times needing far less money up front, than futures.

So all things being equal options are more bang for the buck.

Note: Having said the above I don't trade options.

 

[Rickshaw Man]

True... I have a hard time believing how much the market rallied during the biggest global pandemic crisis in our lifetime. It just didn't add up. Millions dying and the stock market skyrocketed. Perfect example of "cognitive dissonance".

I still think a big selloff could happen. I'm better at simply daytrading vs predicting market direction. Like hafez said, trade what you see, not what you think.

Lesson learned: do what I know, which is simply daytrading, vs trying to figure out market direction. The fed propped it up, it's a bubble, house of cards.

It's hard to battle with an outfit with unlimited capital. That capital cost them nothing. That's how the FOMC lost its discipline. Now everything is rising in price. Never in the history of the automobile have used car prices risen. That's what you get when you have access to free money.

 

[Rickshaw Man]

Buying December ES now at 4477. Will add if it dips at the cash open.

 

[Rickshaw Man]

These clowns at the FOMC will price everyone but the richest out of the markets. Just think about new investors coming into this sky high market. The FOMC have taken over our markets. Sure everything looks peachy, I simply don't believe this can continue forever. Housing is pretty much out of reach for first time buyers, average home prices now at 400k 20% down 80k....

 

[Rickshaw Man]

 

[Rickshaw Man]

Just keep buying....The Dukes know something, lets get in on it.

 

[Rickshaw Man]

Hum...are we there yet. If you look back these minor pullbacks occur during contract roll over.