oneenigma4u t1_ix18ke1 wrote on November 19, 2022 at 11:29 PM

Not advice. They do not buy contracts close to the money. Let's say they have a very strong feeling, it will be a down Market today. So they call up the spy option chain. Locate a put contract that's about $0.10 a share. Usually in same day expiration. Then load up. If the market moves down immediately from the open. There are 10 dollars contracts will appreciate immensely. So if they have a hundred contracts. Which would equal $1,000. So if these 10 cents a share contracts go up to as little as 11 cents a share. You just made $100. If the market has a big scare in dips quickly. These 10 cents shares could move up to as much as 40 cents. Which would yield them $3,000 profit. Obviously scale up for a better effect.

MayoLovinApe t1_ix1ucyj wrote on November 20, 2022 at 2:24 AM

Yeah but that move has to happen basically within the first few mins of buying and if it goes in the opposite direction it just roasted the fuck out of ur contracts and yr stuck holding em.

oneenigma4u t1_ix1vs0g wrote on November 20, 2022 at 2:36 AM

Again not advice. Correct usually within the first 2 hours of the day other than that everything is established and there's no chance of making anything. If it goes against you that's what stop losses are for. If they are getting into a $10 contract. Chances are they're bailing if it drops to $8 contract. Usually these are daily contracts there is no holding them. If it's not going in your direction. The only purpose of holding them is to watch it go to zero. Maybe you have a tax loss Harvest you're trying to secure. But in General within the first 2 hours of the day you should know. Not that there isn't opportunities in the mid or end of the day of some crazy news comes out. But in general the first 2 hours is the prime time. Also they are not buying with the belief that these contracts will go into the money. They are only behind them for the appreciation if the market is moving in that direction. Should something crazy happen in the Market runs into the contract. Well then that's jackpot. But most of these guys are not holding that long. As a matter of fact, I would say the professionals. Only hold for a 5% increase on their money. Successfully doing this everyday without compounding. You owe you 25% on your money by the end of the week. After the first 5% win. They said their stop loss the next day for 2%. So if it goes against them they will still have 3% from the previous day to play with the next day. This method gives them two days of trying to figure the right direction. That's conditional on the fact that their first trade was successful. Most professionals work this method all year long and just bank. Whereas WSB followers. Most of them are looking for lottery tickets. They want that multiple thousand percent gain in a day. But one of the old phrases holds true. Slow and steady wins the race.