Which SPY options strategy to 3x return in a month

keroppi said:
Do you have any suggestions?
More...
A quick look at Yahoo Finance gives us the approximate price for November 29, 2019 299-297 SPY Put Spread: around 0.20 + 0.05 bid/ask spread to make 8x in a 3 weeks. This is a monthly expiry which is usually liquid. Far away weekly expiries might not be as liquid. The next quarterly expiry may also be ok.

Risks of the strategy:
  • 100% loss of capital or above due the below risks
  • spreads should always be traded as a combination
  • pin risk on the selected strikes
 
keroppi said:
I want to find an options play that has the potential to 3x my capital in a month.

Say for example I believe SPY will close down 10 points in one month's time (to 297 points at 7 December) which option should I buy or sell to achieve this. I am not discussing why I believe this to happen to not, I am just looking at which option is best for maximising profit for this particular play.

I looked at various puts for different expiries in November and December but I cannot find one that will generate 3x my capital in one month

Do you have any suggestions?
More...

SPY current price 307.
Nov. 29 307/302 P. spread......cost $120
If close below 302 by Nov. 29.........profit $380

SPY.png
 
So you are saying that you want a payoff based on the close 30 days from now,not an immediate move n the near future...

If so,that would obviously limit us to options expiring 30 days from now,which in all probability would require a spread as opposed to a single option.

From a quick glance,there are spreads that meet your requirement,but you will be kicking yourself if the move comes sooner...

I would lower the R:R as the worst thing that can happen is to be right and early and not make "money"




keroppi said:
I want to find an options play that has the potential to 3x my capital in a month.

Say for example I believe SPY will close down 10 points in one month's time (to 297 points at 7 December) which option should I buy or sell to achieve this. I am not discussing why I believe this to happen to not, I am just looking at which option is best for maximising profit for this particular play.

I looked at various puts for different expiries in November and December but I cannot find one that will generate 3x my capital in one month

Do you have any suggestions?
More...
 
keroppi said:
I want to find an options play that has the potential to 3x my capital in a month.

Say for example I believe SPY will close down 10 points in one month's time (to 297 points at 7 December) which option should I buy or sell to achieve this. I am not discussing why I believe this to happen to not, I am just looking at which option is best for maximising profit for this particular play.

I looked at various puts for different expiries in November and December but I cannot find one that will generate 3x my capital in one month

Do you have any suggestions?
More...

You won't do that on SPY. But you can, potentially, on 3xETFs/ETNs that trade options.
 
betcashrun said:
A quick look at Yahoo Finance gives us the approximate price for November 29, 2019 299-297 SPY Put Spread: around 0.20 + 0.05 bid/ask spread to make 8x in a 3 weeks. This is a monthly expiry which is usually liquid. Far away weekly expiries might not be as liquid. The next quarterly expiry may also be ok.

Risks of the strategy:
  • 100% loss of capital or above due the below risks
  • spreads should always be traded as a combination
  • pin risk on the selected strikes
More...
Can you please elaborate on the risks you outlined - would appreciate it
 
keroppi said:
Appreciate the concern. I'm not putting everything I have on this trade. Just looking for ideas
More...

These aren't "ideas". This is purely theoretical "let's see if this is possible regardless of completely insane risk" fluff, and anybody who actually implements it really does belong in r/wallstreetbets.

But here's an "option" for you: offer that deal here. You'll place whatever amount you're willing to risk in escrow with a reliable third party, and the other person will place 3x that amount in escrow as well. You get it if SPY drops by 10 points 30 days from now; if not, the other person gets your cash.

I guarantee you'll get takers. People will line up outside your doors.
 
But that's not really what he's saying.He wants a position that will return 3x if the market is off 10 SPY pts (apx 3 percent lower) by Dec 7...

Why he picked 10 points as the max correction is another story,(compounded by the 30 day terminal payoff )

He's a spreader
 
You must log in or register to reply here.
Back
Top