Lets say you know for a fact that a stock is dropping 10% tomorrow. Whats your strategy to make the most amount of money? You have $10,000

by | Oct 11, 2022 | Resources | 38 comments

Lets say you know for a fact that a stock is dropping 10% tomorrow. Whats your strategy to make the most amount of money? You have ,000

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.



View Reddit by MBChocView Source

Lets say you know for a fact that a stock is dropping 10% tomorrow. Whats your strategy to make the most amount of money? You have $10,000


LEARN ABOUT: Investing During Inflation

REVEALED: Best Investment During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing


See also  Let me enjoy my growth.
Truth about Gold
You May Also Like
Lets say you know for a fact that a stock is dropping 10% tomorrow. Whats your strategy to make the most amount of money? You have ,000

Recession Imminent

Chick-Fil-A has been skimping on sauce. This morning I ordered 4 sauces with my two burritos and...

Lets say you know for a fact that a stock is dropping 10% tomorrow. Whats your strategy to make the most amount of money? You have ,000

$AMD YOLO FINAL BET

https://preview.redd.it/vfu59hvvne7c1.jpeg?auto=webp&s=8a063d717641ec12bf69ca30b3ccc987a1ffc32c...

38 Comments

  1. Billyshakes1597

    Soooooo you wanna share what said stock is?

  2. EmptyEggBasket

    Do not trade on inside information unless you’re a politician

  3. MeridianNL

    We inverse and lose money. Because that is what we do here. ![img](emote|t5_2th52|4276)

  4. Unoplus5card

    PAYPAL PUTS?

  5. Sprick530

    What info you got brother

  6. OkNet5174

    Could you give a theoretical example of a ticker maybe?

  7. KoGamer01

    10k in 0dte with a strike price of 5% OTM

  8. Bear_Bull1738

    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.

  9. SpecialistTrust9504

    If you knew what price it would fall to put debit spread for sure. Now give me the insider info

  10. StuartMcNight

    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.

  11. NoChemist22

    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.

  12. Pooh_Shmoo

    Leverage options on futures 10 to 1 … and if you are wrong, you are fcked

  13. TrollDeJour

    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

  14. newbgril

    FBI has entered the chat.

  15. Grape_Ape1980

    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.

  16. F1tty

    Short bet on spy

  17. HotMeasurement3763

    SQQQ all the way

  18. Standard-Inflation-6

    Ticker or ban

  19. Ka12n

    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.

  20. RogueSoldier10012

    *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.

  21. tylerado12

    Atm multiple puts

  22. Psychological_Cow109

    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.

  23. throwaway_0x90

    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.

  24. Routine_Bill_2860

    tell me the ticker I’ll tell you how to play it!

  25. iam_mustafa

    I feel ticker is rivn

  26. Professional-Bus8449

    Wait the drop, buy strong stocks day after for 10% less price. Hold them Till retirement.

  27. Krisevol

    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.

  28. Tonka111

    I’m betting on green 00 all in and buying calls with my wife’s boyfriends credit card.

  29. Hans_Hackebeil

    Puts.

  30. Natural_Dare6825

    Share the info with the camrades from wsb

  31. whatisliquidity

    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.

  32. Silly-Consideration1

    I’d say if you knew for a fact that would be insider trading and you’ll enjoy the SEC probe

  33. Big-Gur-3294

    Buy OTM put

  34. Chakkaaa

    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

  35. Forest-runner

    AMD done falling 10% a day until earnings!

  36. Dependent-Ad5908

    calls

  37. littlemarcus91

    SQQQ

  38. Exotic-Lime-3416

    Puts on TQQQ

U.S. National Debt

The current U.S. national debt:
$35,911,107,598,198

Source

ben stein recessions & depressions

Retirement Age Calculator

  Original Size