I saw somewhere that there are market who sell options very cheaply on things they think will never happen. So if you are right you have huge profit, if you are wrong you lose just a small amount of money. Does anybody know what is the name of this kind of option (or whatever they are) and where can i find them? Thanks you all
If the options are dirt cheap, premiums will be very low when you sell it. How can you get 25 x returns? It is an impossibility. Now, if you are an options buyer gambling on a lottery type trade where you risk say $10 an option contract and the stock gaps up on earnings or news of being acquired, an out of the money option contract could deliver huge rewards if say, the options jump in value to say $300 a contract? Buying and selling options are two different things. They are opposite positions. Only one is going to turn out correct.
%% That; + a good wise insurance broker may actually write you a thank you note, knowing your premiums make him so much money+ an occasional pay off to the buyer seldom happens. State Farm gives away a $50 tow truck payoff off a $2 premium;knowing it seldom happens[limits per year also apply LOL] + they make a mint off the main auto insure premium.......................................................................................
No troll, have you ever seen "the big short"? 2 of them made 30 000k dollars starting from 110k in a couple of years...its 300x the starting value, 30000% profit, i just want to know whats the name of this kind of options... PS: well well was a troll, didnt know what to say xD Thanks you all btw