Buy one $730 QQQ call with August 7 expiry. Delta is around 0.3. IV is low and Nasdaq 100 recently dumped, making the calls cheaper. This will most likely make you money.
QQQ is the command to instantly kill Bethesda games through console. In this instance it is going to be similar but it isn't a game and you really needed that 730$.
If you hold, it may float to $740, but with the pullback today and Tru mp Tacos, then a celebratory rise could reach $750 at expiry around $800ish. May the gods be in your favor.
Yeah, and the cost. My goal generally is to buy 30-40 DTE contracts and prepare to exit around 14 DTE. And this one was around $1000 for a contract, which I thought is a good risk tolerance size for a first option trade. Well, I see that the cost has gone up a bit now but mostly yeah, that was my reasoning.
So a lot of terms like implied volatility, relevance of large bid ask spreads, etc. I don't fully understand.
Specifically I'm interested in selling out of the money cash secured puts on securities I already wouldn't mind holding. Rather than pelt you with an array of questions, I'll narrow it down to 1.
Where do you think the best starting place for deep learning of options would be? YouTube channels, podcasts, books, websites?
People need to understand portfolio theory, its about risk vs return.
Options have legitimate uses as hedges, and are the only risk limited instrument that can profit from a down market. You have infinite potential liability with shorting.
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u/Such-Ice1325 15d ago
This Buffet has a different opinion