DEGENERATE OPTION TRADING

Lloyd Blankfein's picture
Rank: Human | 18,091

Yes, I know this isn't r/wallstreetbets, but I'm sure there are some ballsy options traders on this platform. Personally, I'm a total degenerate - I love gambling on football, hockey, politics, and TSLA calls/puts. If you buy stock, you're expecting it to go up, might as well not be a pussy and trade options. If you have balls, invest in calls. What is the most money gained/lost that you all have had with options trading? Do you enjoy YOLOing your money on crazy bets?

Comments (24)

Feb 11, 2020

Sears was fun for puts right before it went down. Amazon calls have done well. Tesla is a roller coaster.

I'm always kicking myself for not buying in Bitcoin sooner. I wish I understood the tech better back then.

"The three most harmful addictions are heroin, carbohydrates, and a monthly salary." - Nassim Taleb

Feb 12, 2020

And you understand Bitcoin now??

Don't @ me

Feb 12, 2020

Actually, yes to the fundamentals of blockchain technology. No to the pricing, but I'd call BS to anyone who understands ICO pricing.

"The three most harmful addictions are heroin, carbohydrates, and a monthly salary." - Nassim Taleb

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Funniest
Feb 11, 2020

daddy musk royally fucked me over but I don't care he's our lord and savior and I still have faith in these 1000 2/28 calls

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Feb 13, 2020

GUH

Buying tesla weeklies is literally free money.

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Feb 12, 2020

In undergrad, placed $250 into an options brokerage to play with. Within in a month had built it to $1,300. Then within a week it was back to $200. Was a lot of fun to trade. Had no idea what I was doing.

Just sell put verticals and wait for expiration. Got lucky at first, then a few stocks bombed while I was short the put vertical.

Don't @ me

Feb 12, 2020

Just sold a BA call for 100 percent gain

Feb 12, 2020

stocks literally can't go down

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Feb 12, 2020

hahaha lets fu**** gooo (don't know if swearing on this website is ok lmao). Id say im an option trading degenerate, Robinhood + options = life

Array

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Feb 12, 2020

ofc you can fucking swear u pussy

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Most Helpful
Feb 12, 2020

I used to trade options in college--even during class. I'd go relative and intra- or cross-sector. E.g. buying calls on Ford and selling calls on GM. Got to the point where I held a portfolio of synthetic longs to reproduce beta returns and would use the savings to bet on fx differentials between the ADR and stock prices. Depending on where the stock was held, the ADR would trade with a lag. On a highly leveraged portfolio, I could eek out 0.25% to 0.50% a day, and this trade was profitable at my level up until around 2012.

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Feb 12, 2020

Yup looks like you ended up in the right place. I understood about 7 words in that entire paragraph.

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Feb 14, 2020

eek

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee

Feb 12, 2020

How much of a lag could you get with on the ADR? You do anything similar to this now? I have made a lot of money recently just playing stuff that has been affected by the virus . Example LVS and WYNN had a sharp rebound after over selling on the virus news. BA got too far away from its SMA's so to me the risk was high it would pull back. So i dumped when the stock was around 347-348 today.

Feb 13, 2020

I think if you tried doing this now you would generally lose money because the arbitrage has been effectively sucked out (so you're taking on directional risk). Even then there wasn't a lot of profit in it per trade, but I could lever up/scale it using options to magnify the returns. A lot of people talk about finding opportunities in dislocations--that's really what it is. So while ADRs are probably arbed out, there are plenty of other dislocations that occur all the time. To successfully arb, though, you need to have access-- so good opportunities are hard to find from a Schwab account. But say you have a brokerage account in Sri Lanka...you might be able to make a decent living off the arb from a Sri Lanka component of a global equity index that trades somewhere else. (Again per trade is low profit, but can be magnified with leverage). This is not financial advice. Lol.

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Feb 13, 2020

Well done. I systematically traded options on futures for commodities and indices it was a lot of fun. I haven't been trading recently though. I always worried about compliance and also would have to explain every option I traded so they could properly log my trades. Also, the most active traders get their name mentioned at board meetings so maybe in the future I will get back into it.

Feb 12, 2020

I traded a shit load of options during class in college and crypto. I made around 100k at my peak in crypto. Lost a shitload on options that same year. Micron fucked me hard, was up like 4 times and then they had dogshit guidance. To this day that company is dead to me.

Array

Feb 13, 2020

You all must understand that its free money and there is no risk to option trading. Once you get this through your thick skulls you can start making money buying weekly calls. 60% weekly return for 10 weeks or GTFO.

Buying tesla weeklies is literally free money.

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Feb 13, 2020

trade options on treasury bond futures overnight...large moves to fade around 3-6am....tend to be mean reverting to NY levels by 10am (tho not always)....plus better tax treatment because its futures

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Feb 25, 2020
Comment
Feb 25, 2020