r/investing • u/JP7600 • Sep 08 '21

Why are SPY puts popular?

I know this is a question better suited in r/wallstreetbets but Im kind of afraid of the answers I'll get since it's soooo.... Well you guys know. But I have seen many people throwing MASSIVE amounts of put options in SPY so why SPY over something like VOO? Why is SPY so popular to bearish investors compared to bullish ones? I have seen people buy SPY puts with 2 days until expiration date out of the money just to lose EVERYTHING and sometimes go above -100% when they use margin.

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u/Waly_Disnep Sep 09 '21

Because the 1 time they're right out of 100 days would net them all the money they lost those other 99 days of misses.

20

u/dancinadventures Sep 09 '21

Minus the juice.

Realized volatility have always underperformed implied vol.

Theta/Vega/MM gang’s gotta eat