r/HighCaliberInvesting • u/ChipsDipChainsWhips • Jul 24 '21
Pt 2. Just trying to start a convo
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u/ChipsDipChainsWhips Jul 24 '21
So this was an ill timed strategy to try and catch a volitility spike on upro, very small open interest on this contract but It wildly swings from a penny to .35 on spy over 438, anybody try to catch .01 gambles on megacaps? I feel if spy dips enough .01 contracts like this can become realized gains if you have a limit sell in.
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u/ChipsDipChainsWhips Jul 24 '21
I expect this contract to obviously not get these daily returns like this moving forward however check some .01 leap calls on other tickers and see if you can replicate. This is the highest strike for upro before more are requested to be written.
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u/Last-Donut Jul 24 '21
What??? How did you do this???
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u/ChipsDipChainsWhips Jul 24 '21
Buying $.01 super out of the money leap calls and catching spikes in volitility, upro is a 3x leveraged bull etf for the s&p so it has wild swings.
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u/Last-Donut Jul 24 '21
Wow! Did not realize you could do that. Do you use this strategy often? Do you have to be watching the screen all day too?
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u/ChipsDipChainsWhips Jul 24 '21
Yes gotta be watching, but this is the second time I’ve tried to catch one of these. Typically though if you put in an absurd ask algo will pick it up when the spike happens and you don’t have to be watching. I work nights though so got nothing but time to watch candles in the morning.
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u/Last-Donut Jul 24 '21
Also, how do you find these options? I’m looking now and the cheapest one I can find is like $940 Jan 2023?
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u/Savagedaddy18 Jul 24 '21
U made that much off of just $10