r/wallstreetbets • u/Sea-Tea-1470 • Dec 25 '24

Gain Options changed my life

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Just turned 19 years old , Truly blessed . Don’t even know what to do .

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u/Without_Rulers Dec 25 '24

Yeah, what’s the DD on that random iwm gain? I know it was the day of the FOMC meeting but do you remember what time you bought the put and at what time you sold the put? It’s not even your largest percentage gain, you threw a lot of money into it compared to your other trades so the 200% gain looks like a lot compared to your other 200%+ gain trades.

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u/Nekrosis13 Dec 25 '24

The FOMC trade was glaringly obvious.

If you watched previous meetings, the direction is clear as soon as Powell is visible in the stream. If he comes out and the market starts ripping, you have a good 30+ mins of straight upside, that may sell off after or not.

If the market starts dumping, though, it's almost a certainty that it will dump for the rest of the day. Often quite violently.

I bought puts at exactly 2:31PM and turned $16 into $3000 just buying $2-3 OTM, selling them when they were $0.5 ITM, and repeating until the movement stopped.

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u/Sea-Tea-1470 Dec 25 '24

I actually sold early , had I held longer would of been double the profit

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u/Without_Rulers Dec 26 '24

Still very nice DD and flipping those contracts that you paid around $194 each and sold for over $600 each x110 contracts, good $400+ profit per contract. Respect 🫡

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u/Sea-Tea-1470 Dec 25 '24

I am by no means am on options expert I am really new. But as for the reasoning of the iwm put that day , I remember all the hype of the last meeting in September , whether it was going to be a .25 or .50 cut and it was a .50 Bases point cut and the market reacted really well. I also remembered reading that it was the first time a member disagreed with the decision of the cut . A few weeks later I read that there was possibly some regret with the decision to cut by .50. I remembered this going into this meeting. 9/10 economist expected a rate cut of .25 bases points. I felt that the feds reaction to the previous meeting was overlooked and there was a very high chance of dissapointed and a low chance of something that would really exceed expectations. So I played my hand.