/biz/ - Business & Finance

>>29962456
Thetagang is best gang

>>28925280
you're gonna make it

Q: When a leveraged ETF dumps, why is it usually a better idea to buy calls on the underlying unleveraged version rather than the leveraged ETF?

A: You're buying the calls after a dump so volatility is likely to be very high. High volatility is the worst thing for leveraged ETFs so even though the leveraged ETF will likely outperform its underlying by more than the leverage multiple in a bull market, i.e., the leveraged ETF will return more than 3x, it will likely underperform its leverage multiple in a bearish volatile market such as the case right after a big dump. Therfore, calls on the underlying are likely to outperform calls on the leveraged version of the ETF all else being equal.

>$1000 in covered calls and naked puts are going to expire worthless tomorrow

>apple drops
>buy close calls
>sell new calls
>Grow my apple pile

>>22150284
semi applicable

>>21472627
these people going bankrupt are usually playing with options
if all you do is literally buy stocks, its nearly impossible to lose it all. even if you tried to create the worst performing portfolio you could, you'd probably lose less than 50%

>>21415354
Next week, i'm selling TQQQ puts

>>21108059
Yes.

>>19896157
based

anyone else ruined

>>19411827
are you the man who tricked me into buying DIS $80 puts? if so i hate you

>>19277212
well OP you did your best and thats what matters

>>18984434
Yes.

>>18967770
kek

>>18959858
a reminder for all the permabears and forever bvlls out there