http://stockcharts.com/h-sc/ui?s=spy With SPY at 203.13 Sept 205/200 bear put spread for a net debit of $207 Price........ Profit / Loss........ ROI % 150.00............ 293.00.......... 141.55% 170.00............ 293.00.......... 141.55% 190.00............ 293.00.......... 141.55% 200.00............ 293.00.......... 141.55% 202.93................ 0.00............. 0.00% 205.00........... (207.00)....... -100.00% 210.00........... (207.00)....... -100.00% 235.00........... (207.00)....... -100.00% 250.00........... (207.00)....... -100.00% lottery ticket. references are too many to quote.
I like the way you put down the underlying price - I have a 2007 diary with bout 85 winning option trades, without one loser, and I never wrote down the underlying for all but a few. Then, along came a spider! If only I knew then what I now know SPY options are bit hairy this weather, especially as they can't be traded till US market opens! J_S
Speculative is the term you are looking for. The "lottery ticket" analogy is over used on ET and does not apply to options. Option trading is Speculative.
If you were trading ES futures, I would call that a lottery. You're obviously taking a sensible and limited risk approach to trading with Options so it's all good.
....if I have a good day in the market...i want to buy this 2004 Benz SL500 http://www.ebay.com/itm/201611915605