The title says it. You have $10,000 to get rich with some insider information, I am curious what strategy would you guys take. The most common strategy for me seems shorting the stock. But I am wondering how would you guys do it.
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Soooooo you wanna share what said stock is?
Do not trade on inside information unless you’re a politician
We inverse and lose money. Because that is what we do here. ![img](emote|t5_2th52|4276)
PAYPAL PUTS?
What info you got brother
Could you give a theoretical example of a ticker maybe?
10k in 0dte with a strike price of 5% OTM
To make the most amount of money? If you knew for a fact that a $100 stock is dropping to $90 I would buy the shortest expiration puts at the $91 strike. Sell immediately at open. But, idk what stocks are dropping 10% on a Sunday.
If you knew what price it would fall to put debit spread for sure. Now give me the insider info
Shorting the stock will give you small returns. If you are sure you want as much as leverage as possible.
Come on… this is WSB. 0dte puts is the minimum acceptable.
Preface — I believe the described scenario is impossible to know for a fact and am answering for general option pricing purposes only. If somehow one would know then I would actively discourage them from acting in a manner which is likely illegal.
With that said — Go look at options for 10/14 in AMD since AMD dropped about 10% on Friday. Look at the current price and the change since day prior. Calculate how many contracts you could’ve purchased at the former price with $10k * change per contract = profit amount.
You can do the math but the options that were previously OTM clearly would have generated significantly more profit.
I did the math for you. AMD closed on Thursday at $67.85 and closed Friday at $58.44.
Most profitable strike for 10/14 would have been $57 with a profit of ~$123k. Followed by $59 at $85.6k; $60 at $76.7k; $58 at $75.8k; & $55 at $74k.
Lowest profit amount would have been to buy the $75 strike at a profit of under $12k. Followed by the $74, $73, $72, $71, $70, $69, & $68 strikes. ($68 strike would net profit $25.7k)
As you can see — buying ITM or ATM strikes would have resulted the lowest profit. Buying a strike which becomes ATM is most profitable followed by as close to later ITM as possible.
Tl;dr: # of contracts + Gamma Ramp = max profit.
Leverage options on futures 10 to 1 … and if you are wrong, you are fcked
Depends entirely upon implied volatility.
In this economy prob the 91$ strikes but a few months ago would have been 92-94
Also why the fuck are you posting this question in this manner go get a lawyer
FBI has entered the chat.
Meta tomorrow PayPal tomorrow big plays on very negative news. For sure 10% drop in both. Meta had a security breach of over 1 million users. PayPal misinformation fines then they said they won’t do it. It’s still very negative news.
Short bet on spy
SQQQ all the way
Ticker or ban
If IV is high then selling naked covered calls that are like 9% ITM would be the most profit. Buying PUTS would be the next best way and then just raw shorting of individual shares.
*If* you cracked information time travel and could pinpoint the value of a stock tomorrow precisely, you’d choose the nearest-expiration OTM put that is about 2/3 to 3/4 the way down toward the drop. Example: a $100 stock has puts at $93-strike going for $20/contract ($0.20/share), whereas the $100 ATM puts are $200/contract. You can buy 500 of them. If it does indeed hit $90 tomorrow, your $10k would be worth at least $150,000 at the close (plus any time value remaining).
By contrast, buying ATM puts would turn your $10k into “just” $50k.
Atm multiple puts
Yo bro. You gonna just leave everyone hanging like that. Damn son. Bitch ass titty in the city I used to know wouldn’t even of done that. Heavy.
0 DTE at the money puts.
But if you do this, make a ridiculous amount of money and this activity looks really abnormal compared to any other trades you’ve done, you’re probably going to get SEC’s attention.
tell me the ticker I’ll tell you how to play it!
I feel ticker is rivn
Wait the drop, buy strong stocks day after for 10% less price. Hold them Till retirement.
If you knew for a fact it’s going down, the best retures are heavily leaveraged futures.
Second would be 0DTE OTM puts options.
3rd would be shorting.
I’m betting on green 00 all in and buying calls with my wife’s boyfriends credit card.
Puts.
Share the info with the camrades from wsb
Short it with puts as close to expiration as possible. But for Max gain you’d need to analyze the Greeks
See what’s got the highest Delta relative to premium and the lowest IV. The further OTM the higher the Delta/price you’ll get. But too far OTM and no one will buy. So check for liquidity too in the OI and volume.
I’d say if you knew for a fact that would be insider trading and you’ll enjoy the SEC probe
Buy OTM put
Id say for someone to file a whistleblower complaint on u and make some dough risk free since u know something is going to happen for a fact. Jkjk please give me tips
AMD done falling 10% a day until earnings!
calls
SQQQ
Puts on TQQQ