What do you think of this trade.

Quote from MTE:

I'd say #1 spot on the next year's billionaires list is yours! Watch out Bill Gates!
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I'm heading over to Home Depot right now to grab a wheelbarrow. Now where's my cane???
 
Quote from peilthetraveler:

I bought some FAS Oct 7 puts. The decay factor should let me at least double my money if not triple, right?
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So you are saying it is good to have your long puts decay away to nothing over the next 5 months?
 
Decay factor is going to help with puts that you BOUGHT???

You only want to double your money? I know of an opportunity to make 50 times your money. If your interested let me know and Ill send you my nigerian friends contact details.
 
Quote from maninjapan:

Decay factor is going to help with puts that you BOUGHT???
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LOL...I think he's going for the decay factor in leveraged ETFs...
 
LOL! Yeah i guess i should've been more clear with that. The decay factor of the 3x leveraged ETF's FAS/FAZ i was talking about...not the decay factor of puts/calls.
 
Quote from peilthetraveler:

LOL! Yeah i guess i should've been more clear with that. The decay factor of the 3x leveraged ETF's FAS/FAZ i was talking about...not the decay factor of puts/calls.
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What is the theta of your PUT?
 
Quote from peilthetraveler:

LOL! Yeah i guess i should've been more clear with that. The decay factor of the 3x leveraged ETF's FAS/FAZ i was talking about...not the decay factor of puts/calls.
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I don't understand the argument that FAS and FAZ will actually go to zero.

It's not like FAS/FAZ point to a specific set of options. These guys are updated and re-hedged every day.

I seriously doubt there's an on-going "decay factor" that can be counted on.
 
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