High upside potential, low downside risk strategy

Discussion in 'Options' started by Qulek, Jun 30, 2022.

  1. TheDawn

    TheDawn

    LOL We can say the same thing about you futures guys. You guys are freaking nuts! LOL
     
    #11     Jun 30, 2022
  2. Overnight

    Overnight

    That is 100% FALSE!
     
    #12     Jun 30, 2022
  3. maxinger

    maxinger

    THe best of the best strategy is

    DON'T TRADE / INVEST !!!

    do anything you want except trading/investing.
    because in trading/investing, you have to take calculated risk.
     
    #13     Jun 30, 2022
  4. Qulek

    Qulek

    Thank you for all your answers. It was just theoretical question. I thought there is some strategy that can use that upside move to to multiply invested capital using some leverage and it will work even some significant drowdown happen before that upside move.

    Based on your answer it seems that the best strategy is to just not use leverage :)
     
    #14     Jul 1, 2022
  5. Why not scale in aka average down?
     
    #15     Jul 1, 2022
    murray t turtle likes this.
  6. taowave

    taowave

    Risk reversal,assuming you really want to own the pig if it des go down significantly


     
    #16     Jul 1, 2022
    Global OptionsTrades likes this.
  7. %%
    LOL\ Are you saying or hinting a counter trend is not a sure thing?? LOL.:D:DAmen.
    WELL @ least IF summer slump[ main trend ] slops sideways, little loss is better than large loss??
    My comments apply to SPY benchmark....... + not any crypto cr*p.
    NOT a prediction+ not bank insured.:caution::caution:
     
    #17     Jul 1, 2022
  8. Use a Cash-Secured-Put (CSP). By this you get the underlying cheaper than now...
    https://www.optionseducation.org/strategies/all-strategies/cash-secured-put
     
    #18     Jul 1, 2022
  9. 2rosy

    2rosy

    do a call back spread
     
    #19     Jul 1, 2022
  10. taowave

    taowave

    Cash secured put is not the way to go...
    Backspread is better,but not as good as a risk reversal
     
    #20     Jul 1, 2022