Insane binary options trade ?

BlueWaterSailor said:
That far out, the strikes are $5 apart, not $1. There's also no Dec 31 expiration; 15Dec23 is the closest...
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I was going to mention you in this thread, but did not want to drag you into what I thought seemed an outrageous trade. Based only on intuition, mind you. BECAUSE I WILL NEVER UNDERSTAND OPTIONS!

Was he talking ITM, ATM, or OTM strikes for 2023? That's an extra dimension I always forget about!
 
Overnight said:
I was going to mention you in this thread, but did not want to drag you into what I thought seemed an outrageous trade. Based only on intuition, mind you. BECAUSE I WILL NEVER UNDERSTAND OPTIONS!

Was he talking ITM, ATM, or OTM strikes for 2023? That's an extra dimension I always forget about!
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Just look at the current price. ATM/CTM is at/closest to the money; ITM calls will be below it; ITM puts will be above it. You should be able to figure OTM from there. :)
 
BlueWaterSailor said:
Even if you had $1-wide strikes, you're still talking $1x100x10,000 - i.e., $1M at risk. Given that risking no more than 1% of total account size per trade is a fairly common rule of thumb, "not a risky trade" isn't how I'd describe this. Unless you have at least $100M to play with, that is... in which case I sorta doubt you'd be asking this kind of question here.
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That was hypothetical. Obviously, I can just take 100 contracts for 100*100 for 10k at the end of the year. I did get the math wrong earlier, I meant 100 contracts. +/- 10k at the end of the year is more than enough for a test.

Also I'm only doing this in January because I'm just betting the year 2022 will close positive. If I place the bet now it makes no sense, I don't know where the SPY is going to be on Dec 31st.
 
BlueWaterSailor said:
Just look at the current price. ATM/CTM is at/closest to the money; ITM calls will be below it; ITM puts will be above it. You should be able to figure OTM from there. :)
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I can't look at current price. I can only imagine it from his hypothetical, which is SPY at 430.00 on January 2, 2022.
 
Overnight said:
BECAUSE I WILL NEVER UNDERSTAND OPTIONS!
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Wait.. So you just browse/reply to every forum looking for viewers for your show?!

Overnight said:
I can't look at current price. I can only imagine it from his hypothetical, which is SPY at 430.00 on January 2, 2022.
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Well We'll see what it looks like in Dec. We're still 3 months out Jim.
 
RGLD said:
Fair enough but I don't see how the video is related...
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Most people wouldn't, because most people do not know how to LISTEN. Many traders lose their souls in their work. I try to bring them back to their nature.

A man a plan a canal Panama. If you get that one figured out without Googling it, you are on your way. Right @BlueWaterSailor ;-)
 
RGLD said:
I assume you're not a Ariana Grande fan... :vomit:
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Probably not, but I have not ever given her a fair listen. I'm still in prog-rock mode, of a sort. But I hear so much stuff, and enjoy it all equally.

 
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