If you shorted those six figures with SPX put options today around 9:50am and closed out at around 11:30am...you would have cashed out very nicely on that trade. You would be the King for a Day at WallStreetBets. All hail Caaaaaaaaaal-- - Hooooooooun.
It's not that hard to trade options. All you have to do...is basically....bet on direction. Bet up, or bet down. Buy either call options, or put options, when you think a move is going to happen. And if you nail it correctly, you profit very nicely. Trade ATM, at the money, strike options. If you trade stock...your risk:reward ratio is basically 1:1 linear ...risk one to gain one. With options....your risk:reward ratio is greater, because of something called volatility. Imagine buying an insurance policy....and generally Knowing....when something/a move will Happen, Those options/insurance contracts you hold....will Greatly increase in value, payout, worth. 9-11-01 ...the owner of the WTC took out an insurance policy before that event. He profited very, very, nicely by knowing something will happen. A move.
SPX wins the annual ET most-oblivious-statement-about-options-of-the-year award, issued never. If it were that easy, everyone would be doing it. Dude, man, don't you think folks here are a bit more sophisticated than the WSB guys like Roaring Kitty, who got lucky?
Well, I guess that's a matter of personal perspective. If being stupid means being successful, I would rather be considered stupid...instead of a sophisticated trader who deploys complex strategies just to nearly breakeven. And I never said what I do is easy. It only looks and sounds easy in hindsight, theory to the uninitiated outsider. Mr. Miyagi and Yoda can make their crafts look easy and instant to the common man. I'm here to make Money, plain and simple. Not become a walking, typing, textbook of various and all trading terms and strategies. And the fastest way to make Money...is what I do with the SPX everyday and options.
Yes yes yes, we've all seen the Knish scene in Rounders. K, so let me ask you the most basic of all options questions. The most basic, so basic that it would spontaneously ignite destriero's hair on fire. Let us say that NQ is at 15000 and I go long 1 contract, TODAY. I believe that from this point forward, the NQ will rise and I am willing to give it until middle of December to rise to 15200. So I buy a future and set my target at 15200. The shit drops a thousand points or whatever, but eventually gets back to my entry, and hits 15200 in a month from my entry. So now how I would achieve this performance in an option? In your scenario, I would buy an ATM call option at 15200 strike that will expire in middle of December. So...How much would that option cost me in premium to purchase? I know that if the price is below the strike I lose nothing more than what I paid in the premium. But what if the NQ is at 16000 in a week from entry? A month? I believe FOPs are Euro style, so there is no early exercising... See? Even these simplest of scenarios are confusing. Mr. Myagi and Yoda never made anything look "easy". If you remember those movies, they indicated that their abilities became easy only after a FUCKTON of practice.
Think like a teabag, not an animated cupcake with artificial colors and theatrics. Make a million. Don't let the million make you. Trade the market. Don't let the market trade you.
You are trying to answer my question with pictorial analogies. But it is not working, because I am asking for specifics. They cannot be represented by pictures or videos.
Well, I can't help you there. I'm not familiar with futures, or how they work and trade. I only have a very specific, laser, focus of experience and expertise. And that's the daily S&P, SPX, chart -- utilizing options for that trade. That would be like Michael Jordan and the Chicago Bulls deciding to play baseball. Stick to what you know. I have no interests in anything else, other than what I know and trade.