Which SPY options strategy to 3x return in a month

A quick look at Yahoo Finance gives us the approximate price for November 29, 2019 299-297 SPY Put Spread: around 0.20 + 0.05 bid/ask spread to make 8x in a 3 weeks. This is a monthly expiry which is usually liquid. Far away weekly expiries might not be as liquid. The next quarterly expiry may also be ok.

Risks of the strategy:

• 100% loss of capital or above due the below risks
• spreads should always be traded as a combination
• pin risk on the selected strikes

 

Almost split my coffee in public.

OP, best of luck, theres plenty of expierenced options veterans in here, stick around and youl get your answers.

 

SPY current price 307.
Nov. 29 307/302 P. spread......cost $120
If close below 302 by Nov. 29.........profit $380

 

So you are saying that you want a payoff based on the close 30 days from now,not an immediate move n the near future...

If so,that would obviously limit us to options expiring 30 days from now,which in all probability would require a spread as opposed to a single option.

From a quick glance,there are spreads that meet your requirement,but you will be kicking yourself if the move comes sooner...

I would lower the R:R as the worst thing that can happen is to be right and early and not make "money"

 

Oh yeah spreads ofc.

 

You won't do that on SPY. But you can, potentially, on 3xETFs/ETNs that trade options.

 

Can you please elaborate on the risks you outlined - would appreciate it

 

These aren't "ideas". This is purely theoretical "let's see if this is possible regardless of completely insane risk" fluff, and anybody who actually implements it really does belong in r/wallstreetbets.

But here's an "option" for you: offer that deal here. You'll place whatever amount you're willing to risk in escrow with a reliable third party, and the other person will place 3x that amount in escrow as well. You get it if SPY drops by 10 points 30 days from now; if not, the other person gets your cash.

I guarantee you'll get takers. People will line up outside your doors.

 

But that's not really what he's saying.He wants a position that will return 3x if the market is off 10 SPY pts (apx 3 percent lower) by Dec 7...

Why he picked 10 points as the max correction is another story,(compounded by the 30 day terminal payoff )

He's a spreader

 

Dec6 305/307 bear spread. You guys arithmetic, right?