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u/Suitable-Classic-174 12h ago
Now do it again with $2400
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u/A_Dragon 8h ago
To be fair, nothing wrong with scooping $1400 profit and reinvesting the 1k.
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u/RealTeaToe 8h ago
Something, something, Casino sir.
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u/Kerferkunde 12h ago
man i would think to myself everyday what if i added one or two more zero‘s lol
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u/isospeedrix 7h ago
If you had a 1% chance to make 500x. Statistically that’s favorable and you’d take this bet every time. But practically you can’t just yolo every penny cuz you still have a 99% chance to lose it all, so you’d have to put in a modest amount even if the EV is positive
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u/Hopeful-Park4674 8h ago
I keep thinking about the $520 4/4 put I bought for $15 and sold for $72… I was mad I didn’t buy more, and now I’m mad I sold early
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u/briefcase_vs_shotgun 4h ago
Went 6k to 50k and kicking myself last few days I didn’t buy more/hold longer. Life’s a bitch
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u/peeved-penguin 4h ago
dude, that's a pretty good bounty.
be thankful.
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u/briefcase_vs_shotgun 3h ago
2 yrs salary lol I make min wage. Yes it is, thx
I am. Also sad I’m not rich rich tho
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u/Kobe7477 2h ago
You put 6k on weekly puts when your salary is 20k?
You belong here. Congrats and fuck you.
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u/briefcase_vs_shotgun 4h ago
Went 6k to 50k and kicking myself last few days I didn’t buy more/hold longer. Life’s a bitch
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u/NYCmetalguy 8h ago
Imagine if you put 20,000 you’d be a millionaire, now go out there and gamble champ
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u/peeved-penguin 4h ago
i think he is a rookie who is only starting out because who buys just one $20 option?
it's a very tentative action.
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u/Mr_meowmers00 9h ago
Damn, this same bet with $10k would have brought in $1.2MM 🤯 Every day that goes by I wish more and more for a time machine
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u/kingOofgames 9h ago
You’re welcome
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u/CustardFromCthulhu 6h ago
This fucking picture. Gets me every time. Both terrifying and hysterical. Like looking into the face of madness.
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u/goatnxtinline 6h ago
This could not have been a calculated move lol you just went down and found the cheapest contract you could find for a hail mary huh?
Even with the tariffs that second dump was very unlikely, which goes to show how insane this was.
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u/Ron3k 6h ago
He started a fucking trade war. There was no reason to pull out. True though, it was more of a hedge.
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u/goatnxtinline 5h ago
The market could have (should have) taken profits or bought the dip and a pull back to create a shallow inside bar should have happened.
before continuing on Monday after more news about how other countries are retaliating begin trickling in over the weekend.
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u/Sweaty_crypto_noob09 5h ago
Hey I’ve done this twice and it worked idk why my ass didn’t try it this time
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u/aeclipseguy 12h ago
Can some one explain this trade to me and how did it work?
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u/Dependent-Goose8240 12h ago
Gladly, he purchased the 534 put on Wednesday midday, prior to tariff announcement, when the market was still bullish for some insane reason. When a bullish SPY is at 565 and you're buying a put for 534 that expires in two days, its gonna be very cheap (contract price at $0.20 per share).
Then the market took an absolute nosedive to the point this "highly unlikely" move ended up not just in the money, but fucking DEEP in the money. So the put was sold this morning when spy was around 520. If he had sold it at closing, his contract would've been worth approx $3,000.
If he had put in $200 instead of $20 initially, final payout could've been $30,000.
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u/Ron3k 11h ago
Exactly right. I knew I won the second he pulled out the board. Wish I had put in more but at least I can comfortably enjoy eating at Wendy’s for the next couple months.
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u/commonman012 11h ago
Wait so question - if you hold the contract till close, Robinhood doesn’t make you buy? You can still sell?
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u/aeclipseguy 11h ago
Interesting, I would believe if the stock did not reach 534 he would have just been out 20.
So you can make make money in an upward market and a downward market.
Thanks Goose8240!7
u/Dependent-Goose8240 11h ago
Lol, I'm actually really shit at making money in a bullish market, but I'm not that bad in a bearish market
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u/aeclipseguy 11h ago
Lol, But, he would have to already own the shares to make that trade? Correct?
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u/Alert_Barber_3105 11h ago
No that's not how options work.
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u/aeclipseguy 11h ago
So what happened was OP thought the stock was going to fall and bought a contract for a put at X dollars for .20.
Once the price fell to his strike price of whatever it was he basically earned the difference from opening price to his strike price.
the gain would be the difference in the price at X dollars and the strike price times the about of contracts. Right? Or am way off?4
u/Alert_Barber_3105 10h ago
Yes but note the reason these contracts even buy and sell is because the idea is someone will play the premium to actually exercise the option (I.e. buy the 100 shares for the contract price), but if you don't have the shares to sell (put) or funds to buy (call), then the exercise just expires worthless. You can trade the option by making profit off the premium difference (which is where it goes from 0.20 to whatever). The price of the contract isn't just the difference in price, its also based off the time from expiry and other factors. So even if you're out of the money (not in contract price) but the stock has been falling steady, your premium on the contract you own is going to go up in value, sometimes much more than the difference between the stock price and contract price.
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u/monumentValley1994 11h ago
Thanks for explaining, are there any website which can help me know what would my realized gain be if I had held the option till closing instead of whenever I sold it?
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u/Dependent-Goose8240 11h ago
So it's more or less how options work at the core. His contract was a 534 put, meaning he has the right to sell to the option writer 100 of the underlying security (SPY) at that specific price, at any moment.
So, once an option reaches maturity date and time, speculation goes to zero, so the value of the option is decided by the difference in price between strike and underlying.
At closing, spy was approx 504. So, the option holder in theory could purchase 100 shares of spy, worth $50,400. Then, the option holder can exercise the option, selling the writer 100 shares at 534, or for $53,400, netting a profit of $3,000
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u/sirprance8 6h ago
What things would’ve classified the market sentiment as bullish on Wednesday? Genuinely asking, I have no idea I’m kinda new :)
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u/Risley 9h ago
But if he was wrong, couldn’t he end up OWING much more than he put down? Like the 20 bucks going to zero isn’t the worst it could get. Couldn’t he be forced to pay much more if the spy skyrocketed?
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u/GruntledEx 7h ago edited 7h ago
No. When you simply buy a put or call your maximum loss is the premium paid, so in this case the $20. There are other option strategies with theoretically unlimited loss potential.
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u/Ron3k 9h ago
Nah bro that was my last 20 dollars- it was a long put
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u/Diboranee 2h ago
Hi congrats! I'm quite new to options, so I'd like to ask: what if the share price falls further after you've sold your put option for profit? Wouldn't the buyer of this option exercise it and cause you to have to sell the actual shares (i.e. for you to spend money to buy the shares if you didn't hold any shares initially)? Thanks!
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u/NotAMedic720 12h ago
Yeah help me I dumb
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u/ChaseballBat 8h ago
No one thought SPY was going to reach $534, so it was selling for 0.20 premium for 1 contract aka 100 shares = $20. If the stock only went down to $534 or higher they would have lost $20.
It ended up going down to 505
534-505 = $29
29x100-$20 = $2880
Looks like they sold before end of day to lock in the gains though.
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u/Ron3k 7h ago
Yeah… it was a lot of money for me. I had three other contracts that were SPY puts at a lower strike. Think I paid 20 each. Sold them for 4800 dollars profit off 3 contracts and could’ve made much more at close. They didn’t expire until Monday either but I don’t like holding through the weekend. 7200 in a day is enough for me
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u/Sweaty_crypto_noob09 6h ago
That’s more than many people make here in a month and you made it in 3 days 😭
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u/suswang8 7h ago
Options newbie: Is it hypothetically possible that, when someone goes to sell these puts in a fast-moving market, that their order does not get filled?
And then what would happen? They expire worthless if you don't get out? Thank you.
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u/Ron3k 7h ago
It depends on the volume of the stock in question. Lower volume will lead to a higher bid-ask spread, which will mean that if you want to fill the contract, you’re most likely going to have to pay the ask price, even if it’s significantly higher than the valued market price. But if you’re confident in your beliefs, don’t let pennies on the dollar stop you from placing trades. Maybe I’m just saying that because I made 100x off $20 🤷♂️
Smaller cap and lesser known stocks will have a limited options market in terms of volume, so if there’s nobody to buy/sell you the contract, you’re out of luck. Choose the stocks/tickers you play wisely, and at the right time.
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u/suswang8 7h ago
Sorry -- I meant sticking to the SPY.
If someone had $10M invested in SPY puts this afternoon, and wanted to get out at, say, 3pm with a market order....is it possible they wouldn't have been able to? Or you just mean they would have gotten out but not at the exact price they would have preferred?
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u/Ron3k 7h ago
As long as it’s within the time frame of regular market hours, I am sure SPY would be able to handle such volume and there would be traders on the other side to purchase the shares. However, the limit price would need to be set below the market price, as 10M is a lot of capital leaving all at once. Then again, SPY has the most volume out of any etf, and a market order of that size would likely go through.
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u/LowPost5494 7h ago
Similar. Bought a 530p on the 31st for 126. But I sold way too early this AM for $1100. Missed out on another 1500. 😭
Still holding some AVGO 5/16 puts in an attempt to offset getting absolutely destroyed on shares the last month. Wen semi tariffs?
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u/Sweaty_crypto_noob09 6h ago
I don’t think people realize, if this one was worth $20 then 532 or 531 could have been worth $10, let’s say OP has invested $1000 and bought 100 options. Right now the cost of 532P is at $2,350. . . OP could have gotten about $235,000 from $1,000. . . Can someone correct me if I’m wrong? 
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u/Lonelypeanut1 51m ago
I am learning the put strategy. The price for spy at your trade time was roughly 513, at close was 505. How was the profit $2800?
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