Submitted by Aimadness t3_124al2j in wallstreetbets
SeemoarAlpha t1_jdymvxw wrote
Consider this...no billionaires have ever been created by strictly trading options. Options are a tool to use as part of a larger financial strategy. The long term outcome of purely option trading ends in you fighting other degens for space next to a Wendy's dumpster.
stubbly_bubbly t1_jdyniv4 wrote
Shhh tell ‘em about the potential on a 50% OTM 0dte though
orcsrox t1_jdz4gnk wrote
From a start of 1k, only need to be right on a full yolo 34 times with a 50 % return, copium
[deleted] t1_jdynol7 wrote
The rise in 0DTE contracts may soon see its first options billionaire.
We just need that black swan circuit breaking -20-25% day ofc.
Annnny day now.
kongadongreturns t1_jdyu16h wrote
when you say "the rise in 0DTE contracts"
do you mean like "with 0DTEs becoming more popular..."? or do you mean "since 0DTEs are somewhat still a relatively new strategy that retail investors can use..."
I've only been trading em for 3 years and was under the impression ppl have been doing it longer than i
Quirky_Mention_3191 t1_jdyw7ty wrote
Lol no, they came recently. I know in 2008 there used to be just monthlies.... Today around 50% of the trading happens in 0DTE. Also, daily options are not counted in VIX so vix is artificially suppressed even after so much volatility.
Aimadness OP t1_jdypn43 wrote
A tool, nice
That-Whereas3367 t1_je0win6 wrote
Jim Simons would disagree.
SeemoarAlpha t1_je0y898 wrote
Simons, and Renaissance in general, does not rely on purely option trading.
General_Asleep t1_jdzoeib wrote
Wasn't Carl Icahn an options traders when he was young. If I remember right he did very well and then lost it all lol.
BaalKazar t1_je0qid6 wrote
There wasn’t anything like 0DTE when he was young.
He probably hedged his portfolio with long dated puts and sold covered calls, the usual thing to do with options.
General_Asleep t1_je0v4lm wrote
Oh yeah, he definitely didn't buy 0DTE haha.
BaalKazar t1_je0zo26 wrote
It’s like a rollercoaster still, just reaaaaaaaally slow and going uphill instead of downhill
Pure adrenaline
General_Asleep t1_je10j0p wrote
Haha he said that he lost it all thought, so I guess he took a good trip downhill at some point. Reminded me of myself when he said that.
bigdickbetss t1_je0pmmj wrote
Didnt bill huang trade options a fuckton? Granted he did lose hes billions again.
SeemoarAlpha t1_je0yv67 wrote
I'm sure he did use options here and there, but it was the overuse of leverage that blew him up. The smart use of options as part of a hedging strategy might have saved him.
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