I've traded as much as (long) 300 contracts on a 0-3 dte. Kind of like reddit style but I didn't have a 10M account so was not able to hold the position like I would like to...with a 10M account a 60k loss is like losing $6000 with a 1M account, $600 with a 100k account or $60 with a 10k account.
Thats reasonable.. Appears you risk 60 basis points. Do you trade with a stop,which could enable you to trade bigger,or do you simply risk 60 Bps and hold to expiration??
I trade with a kid who buys 1500-2000 of those $.10-$.50 0DTEs. It’s fun to watch, on Friday he made more money on QQQ puts than should be legal!
Has he been buying puts for months though? It seems like the lottery ticket finally paid off. What's his win rate like?
I avoid trading large lots because I feel the algos get triggered and they will come after your position.
That's why I take these reddit posts with a grain of salt...if I were to put 800 contracts on a long option I could almost guarantee that price would liquidate my position...the candle would be the equivalent to a rogue wave in the ocean taking out a ship.
The same could be said for stocks by your analogy. All stops are useless when the market isnt open... Do you also not use profit stops because the market isn't open on weekends or overnight? Fwiw,I could see why you wouldn't stop yourself out on a single leg long position or if you are an investor. But I would run backtests