Because buying 2 * 0.25 * 100 = $50 worth of options involves risking only $50. For a point of reference, yesterday I lost more than $50 on some SLV puts on an unrealised / MTM basis, before I sold them at a profit of greater than $50.
Trades have to be compared based on percentage gains not dollars, that way everyone is on a level playing field. A $1000 trade might be peanuts for some, but too much for others. This AGQ May 200 Put trade by mikeenday was the best ever posted on ET, $0.25 to $5.00 = 1900% will be tough to beat.
No. They should be looked at both ways returns and notional. Who here would have put 5% of their account into this trade? Not to take anything away from this trade or yours, but cherry picking the 1 win over what would be 20 losses buying tinies isn't right either. Now if you can consistently buy nickel options and sell them for 80 cents such that you make money even 20% of the time, PM me and I will give you all my money to manage.
If you think it's so easy posting a live trade why don't you give it a try? The ET record is 1900%, good luck.
if your SBUX call doesn't work out (I hope it does, i thought it was a smart risk/reward) should it be part of the worst trades ever because you lost 100%?
That's nonsense, FF never had a losing trade. If the trade goes against him, he doubles down, if it keeps going, he applies martingale(paper money has no limit). If all else fails, he edits the post and flip the direction. I wish the old sbux thread was still around from a few years back, it was EPIC. FF is the man! dont mess with perfection!
Anyone who didn't see Silver correcting is a complete fool, I think its going to bounce probably back to 43-45 in the next week or so, new highs could be possible in the next month or so but who knows. I still think it corrects even more, to the lower 30's is my price over the next couple of months! If it completely falls apart 25 or less is extremely possible as well.