Home > Markets > Options > I made a 450% Return on my investment thanks to this crash today!

I made a 450% Return on my investment thanks to this crash today!

  1. I should have bought more but I was just trying taking a small wager and it blew up quicker than I expected. So can I milk this 450% return for years and start writing books and making videos on how I can get 450% returns?

    I even put the proof so no one can say I am lying about my amazing returns.

    short term options really do get wacky as they near expiration and gamma risk explodes.
    looks like volatility is back, about time!!!
     
  2. You have 300k in cash and you took a $200 position ? Dude, step up a little.
     
  3. Roflmao - yea good with book and videos
     
  4. I was only bustin' chops...it was a nice trade.
     
  5. Just get on cnbc
     
  6. I Just need to figure out how to scale those 450% return trades :)
    I just need to figure out how to scale up these 450+% return trades. :) and become a billionaire. Probably easier to sell books and videos like all the other schmucks selling a system.
     
  7. Create an App of some sort, rather then writing a cliche, dry, drab book.
    I spent this afternoon reading about app development, from a business perspective.
    I would like to create a finance/trading app, or not me personally,...but hire a guy or two to create my vision.

    You can get stupendously rich, if you develop an app that alot of people like and enjoy.
    Clash of Clans was made for cheap...and it generated basically a billion dollars in revenues. a Jackpot for its founders/creators.
     
  8. I was thinking you were ready to buy your own island until I saw the position size.
     
  9. Have you proof for at least 100 transactions like this?

    Aaaah, I understand it was a one time achievement...
    You are dreaming you can replicate this over and over again. That would be necessary to have an edge.
     
  10. Well done - despite moving out of the market I took a step back yesterday but am still well up for the year. When the portfolio was moving up 10K a day, it wasnt surprising to take a 25K loss on a big down day.
     
  11. --------------------------------------------------------------------------------------------------------
    schweiz, this is exactly what I was going ask?
    If he only used 1% ($3k) of his $300k account and could duplicate this trade only 40% of the time and lost 60% of the time the entire -$3k premium, he would nearly double his total account every 100 trades:
    400% win x $3,000..........= $12k
    40 x $12k win.................= $480k
    60 x -$3k loser................= -180k
    Total gross account gain...= $300k

    "Here in lies the problem, how often can you get a market transition so powerful (like this past
    week), that it generates a 400% gain in either puts or calls in a day or even a week?"
    (Note: Op was buying Feb 7 weekly options and this was a same day trade.)
    Question: "Can that happen 40 times a year?"
     
  12. The problem is even having a probability of 40% on such trades is unlikely. Most likely I would lose my hard earned trading capital trying to play such trades. I actually made a similar win with a OTM call and made a 320% return. so 2 times in my trading career making such crazy return on small wagers.

    Statistically achieving such returns with long OTM positions near expiration are very unlikely, less than 40%. Pricing does get distorted as they get near expiration making it difficult to accuratly price these options and this is why sometimes when you have these sudden market swings these OTM option prices get a bit crazy.

    I would not recommend trying to achieve such returns via large positions. This is why my wagers are small and VERY Infrequent unless I see something that makes them worthwhile to consider taking a gamble on one, and then using a small amount of capital.
     

  13. My own rule for trades is that if the trade set-up fits my plan, I go in with the max risk my account will allow, never more, but never less. I'm looking for asymmetrical r:r: I'm already happy with the set-up and the capital risk so there's no need to just dip a toe in the water. And imagine the sick feeling when that one tiny test trade turns out to be the one that explodes.
     
  14. tomorton,

    Can you go into detail with an examole please?

    So if your a count size is $20k, and you see a setup, you risk (increase lot size or more stock shares) the entire $20k on this one setup?
     

  15. You have to be kidding. We all love a joke but just in case you're serious -

    The max risk I would take for years has been 2% of the account. In the last year I have increased this as I became more familiar with and profitable from the strategy I'm using. I have very rarely heard of a trader risking more than 10% of their account and I wouldn't ever do it either.
     
  16. Thanks tomorton,
     
  17. You hit a lottery ticket put for under $1k and you are acting like you hit the lottery. I have never seen a good trader glaze his knuckles over such a trade..... jeez act like you have traded before...
     
  18. You must not be a fun person to be around. you seem to take things way to seriously. Life is to short to be this dry and humorless.
     

  19. LOLOL. He was smart taking it slow, waiting for the market to REALLY crash and to then get in. :)
     
  20. Options prices were so distorted the last few days. I took a few small wagers and bought 283.5 calls that were 6 cents and then as the markets went down they calls actually were worth more so I sold them. Then it went up to to the 80 cents range!
    Distortions in pricing. even options with 1 day left were trading at inflated prices big time. exciting week.

    not as big as the last return but 351.33 turned into 942.65 for a profit of 591.32 dollars.
    been lucky with these last few lotto trades.



    SPY Feb 16 2018 283.5 Call 4,100 --- 351.33 --- 942.65 591.32 168.31 Short-term
    Sell to Close.LIFO 2,000 02/06/18 141.95 02/06/18 377.71 235.76 166.09 Short-term
    Sell to Close.LIFO 2,000 02/06/18 202.28 02/06/18 538.04 335.76 165.99 Short-term
    Sell to Close.LIFO 100 02/06/18 7.10 02/06/18 26.90 19.80 278.87 Short-term
     
  21. Another small wager made a 12percent return on investment even though the markets been down 2 days. Bought the june 15 strike price 95 puts for 5 cents a contract and sold then back to close at 8 cents a contract.

    Made lunch money on the trade. 30 contracts. These tiny trades have been doing well. Lol. There is an actual market for these real deep out of the monet contracts. Shows you the depth of liquidity in the SPY options market. I dont think you can find a better market to trade but SPY and its options. Lots of liquidity, diversified liquid ETF reprsenting the S&P 500, you cant go wrong.

    I got some interesting info from some people working at Big companies, lots of layoffs coming next quarter. Not sure why but I think all these acquisitions made by corporations are not panning out and costing money.
     
  22. I bought in the morning the Feb 16 2018 206.0 Put @ 0.17 and sold them back to close for 51 cents :)

    These insane swings reminds me of the old days. I will post the Gain/loss saturday when it posts.

    Gave me a little extra pep in my portfolio. :)

    These little test trades are actually adding up quickly.
     
  23. Hope you stepped up this time. I really thought you would be posting here regretting your size on the earlier trade. Going in on the opportunity of the year(s) on 0.1% of account seems way too conservative. My own head-ache is trying to limit the big size to those opportunities, and them only :)
     
  24. 450% , shame it wasn't 500% , I hear Goldman hires on the spot if you can do that.

    But I did hear the block desks talking about some guy that made 450% on an options trade, so it might have been you.
     
  25. Well I sold short these high priced Options, love the inflated prices on options. 2 days of life left. Sold short the
    02/12/2018 10:21:34
    10 SPY Feb 14 2018 260.5 Put @ 1.92


    02/12/2018 12:22:06
    and bought them to close Bought 10 SPY Feb 14 2018 260.5 Put @ 0.81 Did not want to be too exposed to Gamma risk.

    Those OTM options were trading with some big premiums with just 2 days left.
    1080.72 USD for a lazy trade not too bad. The iPhone app is real nice for options trading, you could be in a boring meeting trading and earning money.

    Hopefully the markets stay choppy for a few more weeks. So far been making money going long options on those small trades and selling short options. Volatile markets are the best for trading thats for sure. Every dollar adds up.
     
  26. Another after the fact trade, none before the fact.

    Welcome to my ignore list.
     
  27. After the fact trade, what the heck is an after the fact trade. Looks like that individual is butthurt. Probably blew out his account during these trading days. or only has a few thousand dollars to trade. LOL
     
  28. Oops fatfinger trade. ate into my profits. Somehow using the mobile client I hit buy to open LOL. I closed that out super quick. Market maker made some easy money today :)

    Screen Shot 2018-02-14 at 12.09.45 PM.png