/biz/ - Business & Finance

>>58165600
>To quote the Steely Dan song, Deacon Blues,
Very based Mr Rockerfeller.

>>58107022
A delta 20 option (hypothetically) only has a 20% chance of being ITM at expiration. A delta 75 option has a 75% of being ITM. An OTM option is only extrinsic (time value). So it it's cheaper. An ITM option has both intrinsic and extrinsic (more expensive but higher chance of not going to 0). So with OTM you're betting against the odds that the option will expire ITM (and above your breakeven). So cheaper price, buy more, profit more if right.

>>58008952
>I purchased put ons a bull etf recently. Isn't that free money due to chop.
It depends on the underlying (volatility and long term direction). SP 500 (standard deviation of 15) can "optimally" take 3x daily leverage based on backtesting. Nasdaq 100 (standard deviation of 18.5) can "optimally" take 2x. Certain volatile 3x ETFs have outperformed their underlying (SOXL) due to ridiculous growth. Basically SPY (1x) does 10% per year, and SSO (2x) will do 15%. But there are better ways to get leverage for the similar risk (LEAPS and long synthetic futures for example).

>>57904013
I have a lot of SPY. She whispers my name some nights.

>>57743747
Don't push me tonight Ricky. A shit storm is brewing. Can you feel it boy? The shit winds surrounding you?

I'm back on the liquor.

I'm back from the liquor store. I got some crown royal apple. Mixing whisky with grape juice is probably a crime but it's not too bad.

Going to the liquor store. What can I get you fellas?