r/wallstreetbets • u/startedstonks04-2020 • Feb 01 '25

Gain 12k -> 115k @ 22 yr old

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Friend told me this is post worthy, anyways I’m blessed. I withdrew everything and put it all into VOO. Hoping I’ll be ahead of my age group for future retirement. God bless America.

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9

u/Professional_Ant897 Feb 01 '25

Out of curiosity, I see a lot of people play ITM leaps instead of weeklies, what’s the benefit of having your expiry set so far back in Januaryas opposed to having done weeklies instead ? I’m thinking it’s less risk?

25

u/startedstonks04-2020 Feb 01 '25

I honestly don't get why people use options to buy ITM leaps, sure it protects your downside, but options itself are mainly derivatives used to give you huge reward for anticipation of big volatility swings. Sorry, I'm not sure either.

14

u/Professional_Ant897 Feb 01 '25

OH lmfao in my head it was 2024 and you had a put for 2025 😭. Gain % wasn’t adding up congrats man!

1

u/startedstonks04-2020 Feb 01 '25

yeah ibkr % change is weird, I think they didn't factor in my 14k deposit?

3

u/Professional_Ant897 Feb 01 '25

Real mine also doesn’t add up lmao.

2

u/Ok_One_8106 Feb 02 '25

same lol but hey with the cheap option commissions I'm happy with using them

19

u/skermalli Feb 01 '25

Bcuz it can be very difficult to time weeklies.  You can use itm leaps to own a stock for a fraction of the cost.  For example, spy jan26 550c which have a delta of .77 only cost 70 bucks where as spy is 600.  So u can own spy for only 12% of the underlying.

2

u/Professional_Ant897 Feb 01 '25

Ahhh that’s actually very clever thank you :)

2

u/soccerperson Feb 01 '25

I’m new to this and understood none of what you just said lol

6

u/skermalli Feb 01 '25

Basically it's a stock replacement strategy. I'm the example above 100 shares of spy would cost u 60,000 dollars.  However, 1 leap contract only cost 7000 dollars and you have almost the same exposure as 100 spy shares. 

2

u/InterRail Feb 01 '25

so is the strategy to sell the contract during a large upswing or to let it expire and exercise?

1

u/skermalli Feb 01 '25

That's up to you. I like to roll my contact to a higher strike maintaining 75-80 delta. That way I book some gains on the way up.