So, I think I just created some stock option ALPHA for you guys...

Discussion in 'Options' started by SoyUnGanador, Oct 22, 2022.

  1. Option prices on individual stocks are going to be higher vis-a-vis- indexes because individual stocks are more volatile than the indexes, obviously.

    So. Buy 10 QQQ options. Sell 10 options, one on each of the biggest QQQ stocks. (I'm saying 10 but it might be 7, it might be 12, you get the idea I'm sure.)

    You will come out ahead given premiums on individual stocks will be much greater than premiums you paid on QQQs, and any risk of loss is pretty darned small given that 10 stocks is plenty sufficiently diversified.

    YOU ARE WELCOME ET!!!!
     
    bookish likes this.
  2. newwurldmn

    newwurldmn

    Pure arbitrage!
     
    Global OptionsTrades and taowave like this.
  3. MrMuppet

    MrMuppet

    Someone is gonna learn about trading correlation by losing a lot of money first^^
     
    Global OptionsTrades and taowave like this.
  4. mervyn

    mervyn

    FAANG basket, you are so out of day.
     
  5. SunTrader

    SunTrader

    I've never traded an option in my life, but even I know there are call options ... and put options.

    So just saying buy 10 options and sell 10 options tells me, the OP knows about as much as me.
     
    earth_imperator likes this.
  6. SunTrader

    SunTrader

    Actually FAANG is no longer a thing, MANGA is it.

    Meta Amazon Netflix Google Apple
     
  7. mervyn

    mervyn

  8. I need to set up a deepfakes generator just so I can do a version of me with dreads and gold caps, wearing a knit beanie and smoking a rank-ass cigarette.

    "Muhfukkas be out here reinvent'n shit..."
     
    Axon likes this.

  9. Haha you would be very wrong. I didn't specify calls or puts because it could be EITHER! :)
     
    TheDawn likes this.
  10. #10     Oct 22, 2022