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Thinking about buying SPY calls
Posted: Tue Mar 17, 2020 9:39 am
by Libertarian666
If chloroquine is an effective treatment, as a number of stories from the last 24 hours indicate, the stock market is going to come roaring back.
I'm considering plunking down a few grand to buy April 17th SPY 300 calls at about $1. Any comments?
Re: Thinking about buying SPY calls
Posted: Tue Mar 17, 2020 10:29 am
by dualstow
Not a bad strategy. Limited downside.
I have permission to trade options but have never done it. I just want to keep buying stocks.
Re: Thinking about buying SPY calls
Posted: Tue Mar 17, 2020 11:49 am
by Cortopassi
I was burned so many times in the past with options, I don't touch them anymore.
What about one of those double or triple levered ETFs for a short period?
Re: Thinking about buying SPY calls
Posted: Tue Mar 17, 2020 11:52 am
by pmward
Options are so pricey with the volatility this high. If you want a levered bet, the newish S&P 500 micro e-mini futures contract would be a better deal.
Re: Thinking about buying SPY calls
Posted: Tue Mar 17, 2020 12:39 pm
by Libertarian666
pmward wrote: ↑Tue Mar 17, 2020 11:52 am
Options are so pricey with the volatility this high. If you want a levered bet, the newish S&P 500 micro e-mini futures contract would be a better deal.
I only want leverage on the upside, not on the downside.
That means options.
Re: Thinking about buying SPY calls
Posted: Tue Mar 17, 2020 12:46 pm
by pmward
Libertarian666 wrote: ↑Tue Mar 17, 2020 12:39 pm
pmward wrote: ↑Tue Mar 17, 2020 11:52 am
Options are so pricey with the volatility this high. If you want a levered bet, the newish S&P 500 micro e-mini futures contract would be a better deal.
I only want leverage on the upside, not on the downside.
That means options.
You're going to pay a pretty penny for that, options premiums are outrageous right now. A futures contract with a stop-loss effectively does the same thing for cheaper.
Re: Thinking about buying SPY calls
Posted: Tue Mar 17, 2020 1:24 pm
by Cortopassi
Libertarian666 wrote: ↑Tue Mar 17, 2020 12:39 pm
pmward wrote: ↑Tue Mar 17, 2020 11:52 am
Options are so pricey with the volatility this high. If you want a levered bet, the newish S&P 500 micro e-mini futures contract would be a better deal.
I only want leverage on the upside, not on the downside.
That means options.
Willing to buy the underlying? With the premiums so high, how about selling some puts?
Re: Thinking about buying SPY calls
Posted: Tue Mar 17, 2020 2:57 pm
by Libertarian666
pmward wrote: ↑Tue Mar 17, 2020 12:46 pm
Libertarian666 wrote: ↑Tue Mar 17, 2020 12:39 pm
pmward wrote: ↑Tue Mar 17, 2020 11:52 am
Options are so pricey with the volatility this high. If you want a levered bet, the newish S&P 500 micro e-mini futures contract would be a better deal.
I only want leverage on the upside, not on the downside.
That means options.
You're going to pay a pretty penny for that, options premiums are outrageous right now. A futures contract with a stop-loss effectively does the same thing for cheaper.
Unless it opens limit down.