/biz/ - Business & Finance

>>21913990
Before the crash I suggested somebody buy XLK 109 calls expiring in July. Imagine my surprise when March happened. As the dip commenced, I suggested he turn the calls into spreads to lower the break even (I thought the market might recover sooner than it did). So for every call, he sold two calls at the same strike price and with the proceeds opened new calls for each short call. Since he was rolling to spreads, it didn't cost any money.
Well, long story short we get to March 20th or so and the premium on all his options has dropped to 1 cent. I felt a reversal was coming so I suggested he buy back all the short legs in hist spreads since they were practically worthless anyway, and just keep the long calls in case a miracle happened.
Then the mother of all V shaped recoveries took off and what started as an investment of a few hundred bucks of OTM calls and what once appeared to be complete loss netted him 5 figures.

>>21026535
Nay TRIPLE my good man. Only the best for our dear jannies