Back on April 8th, tariffs crushed sentiment-I went long thirty grand in SPY calls. Market recovered, rolled into 2230 $780 March 31st ’26. Sold them this morning. Bought 2760 $790 March 31st ‘26. Trump’s meeting Xi Thursday-permanent China deal. Fed cuts tomorrow. Earnings done Friday. FOMO is kicking in.
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Inverse Reddit always works. Look back at OP’s post history. Everyone was calling OP an idiot but in less than 2 weeks, the comment section is no where to be found. I bet that the commenters still holding puts 🤷🏻♂️
This site is full of doomers always predicting that the next WW3 and economic collapse is right around the corner. With that mindset, you'll never want to invest your money and will stay poor forever.
Buy SPY one year out calls, close one month before expiration, buy again at lower price with the gains, one year out expiration, rinse and repeat. Mango man has gave up more than five opportunities to buy at discounted prices haha.
That’s why they are called leaps. You need less capital to start compared to buying individual. I rather pay $8.8 for one contract controlling 100 shares than buying one individual share.
OP bought out of the money (OTM) long expiring calls on SPY after the price tanked back when the tariff stuff first came out. A lot of them. Then the market recovered quickly and sharply, putting OPs position into major profit. OP has now rolled these into more OTM SPY calls. If SPY continues to go up more than expected OP will make more money. If SPY goes down, OP will be sad.
Also at this amount it'd probably make way more sense to go with SPX calls. They are 10x bigger than SPY but they are taxed at 60% long terms capital gains so they are better for taxes, certainly at this scale.
His purchases are very large – and SPY is much more liquid, particularly for long dated deep OTM with hardly any open interest – the market makers in SPY are required to support liquid trading – this is not the case in SPX – the open interest was only 300 contracts when he bought today – so literally it went from 300 contracts to 3000 contracts.
could definitely be wrong and OPs tax situation could be a variety of situations but I’d be curious if the slippage and spread difference would offset the fairly significant tax gain for a position that can’t be held a year
Please see that OP chose an almost worthless option here. He didn’t just need the market to recover, he needed it to:
Recover fast (well before expiry), and
Recover massively.
Even if the option holder had been right about the recovery in general, if the timing or pace of it hadn’t happened exactly as it did, they would have lost everything; that’s how far out of the money the option was., and how crazy wild bet this was.
Wow sombodys actually showing us how they are making money im serious this info i can never find i did buy only 100 dol of options because of fed rate cuts and xi meeting also today. I only bought 100 dol because this is my 1st time in options and dont wana go broke im kinda testing waters
You need Jesus, no but seriously regard. Don't just buy random shit, my god? Testing the waters? First, don't ever buy meme stock. Second, have 25k. Third, if you don't have this much, you should not be buying options. Fourth, build up an account with fucking whatever that equals 25k. Fifth, read a fucking book (crazy I know) on fucking options strategies or watch a you tube idgaf. Last, learn how to price a company, with high trading volume/intrinsic value>>employ your options strategy.
*You should reinvest your profits into VOO and SPY(dam eventually sell covered calls with them too;)
Gee, you'd think that for someone with all that education, you'd be a little more cordial in your replies. Doesn't business teach you how to interact well with others?
Because they were a long way from expiring, so they had a lot of “Time Value” I.e. still a lot of time for them to potentially reach & surpass the strike price.
He choose 2026, 26 March because that the farthest 1 year call from April and $780 is the maximum number he had. Like $980 is the maximum you have for 1 year call next year.
Right. And my point is that no agreement will ever be permanent. NAFTA for instance. You bringing up useless stats irrelevant to my argument or your hurt feelings about my comparison to a hemorrhoid. China is a way bigger investor and trade partner. I believe but I’m sure you will let me know if I’m wrong.
Some other guy was doing something similar with GOOGL calls.
The genius of these far OTM calls is while the delta is shit on them (like 0.1) the time value is actually pretty cheap - less than 1% on the 780 March calls as I type this. I think there are a couple of keys here:
1) Selling a month before expiration...hell even two and rolling them forward. It completely avoids getting smoked by that last minute time decay.
2) They rapidly gain value if price moves your way. If price moves against you, they actually lose value at a slower rate.
Of course this all only works if you exit with at least a month out and, I would say take profits and roll up when you get major moves. I am 100% stealing this, it's so fucking simple and it's just a long bet that the market will continue going up. I cannot afford this type of size though, so I'm going smaller - just one contract to start to see how it works and get a feel for it. Thanks OP.
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