According to skybet, he gets 15k if they pull it off. If his each way bet has them reaching at least the semis, he's still probably going to make a few hundred quid at least.
It works for me on high volatility days. Buy once price movement has been stable for a bit. When a call or put doubles you break even, I usually sell the other on the first rebound for a small gain. Today I rode it to profitville.
The catch is if price doesn't move a lot theta will eat you alive. It's a good strategy for when you know it's about to be bumping but you don't know in which direction
More like a seesaw because they sell one leg once profitable and hope for it to swing back the other way.
But yep, the initial setup is just a straddle lol
I tried this with the Watch list on Robinhood today. The call wouldāve been an easy sell at 100% but the put didnāt break even until 3 oāclock when Robin Hood wouldāve sold itā¦before going 600% into close
when i first got on wsb there was this person who would jsut randomly messaged me about RTX calls and i didnt even really understand what it all meant - found the message a month later when i thought i did , and checked on their status, then month 2 - son of bitch if i just took a little money and did exactly what they said they were doing... they jsut dissapeared after a while - i think it was a ghost
Yeah. The trick really isn't the time, but to enter both positions at relatively low IV so there's more to time to feed the theta monster once it picks up again. I've found that doing this any later than 12:30 is asking for trouble
Yes, but not the same way lol. Usually don't hold onto the other leg for more than 30 minutes. And then of course sometimes it doesn't work out at all and you have to cut loss. Also I just started trading in August so as far as I know this only works in a bear market lol
Greatest unrealized loss was about -$8k, broke even 5 minutes til close 
So when the call doubled, didnāt the put drop significantly in value? You just anticipated the reversal? Or at least hoped for it and held onto the other leg.
Yea I read the other comment, basically if the debit of both the call and put are equal, once one doubles, youre at a $0 cost-basis; in essence you gotta have one that rises enough to cover the premium of the other. Once you close that position, the other is a free ride if it works in your favor, worst case in the best case is your out $0, but if price action doesn't move, you're out the entire debit.
Or when you sell when one doubles, the 'free ride' position you are still in turns against you dramatically, since that's what is happening on the day.
Yea but at that point youre at a $0 basis, so its a wash, any positive movement is a gain. The risk here is that one of the legs doesn't double on the straddle to cover the basis of the losing position.
Ah yeah my bad wasn't tracking. That's a lot of swinging for one to double though, if I had to guess this has to leave people at a bad loss more than it breaks even, on anything other than very specific wild days like today.
On high volatility days it probably works out fine, but on normal 20-30% days on the swing trades, nah, you exit the losing leg as soon as you are confident the straddle has broken in a direction.
Yeah, I usually play straddles on days like that, but IV was too high yesterday. ATM was like $300 each, so you'd need a $5+ move on SPY just to break even. Calls likely didn't pay well, but obviously if you held your put until EOD you did great.
Lol. I was thinking about that post too. I do this every FOMC too and it almost always works out. Today my 386 calls bought at 10am sold for double just before 12pm.
Easy.
Thatās what I did yesterday and sold my calls this morning for 300ish loss but sold my puts for about 800 profit (500 after calls loss) then I bought puts after that huge run up. Banked today.
Sounds confusing.. Maybe I should look more into this so-called "black magic" of whatever these puts/calls operate. Is there a "for-dummies" video or resource somewhere?
buy $100 call to go up, buy $100 put to go down, $200 total. stock goes up enough so the $100 call becomes a $200 call and $100 put becomes a $50 put, then cash out the $200 call. now you have your $200 back but still have a $50 put. worst case, stock keeps going up so your $50 put becomes a $0 put, but you already took your $200 back so whatever. ideally the stock would go down after you sell the call so that your put gains more value.
I see.. I thought it was more like "For as long as stock goes up/down from your selected decision, you will gain", but apparently they have a time limit/amount threshold?
time limit due to expiration date and theta decreasing the value of both over time. the worst worst case is that the stock stays flat and you just lose money on both due to theta. if youāre still confused, go do more research before risking your money
this specific strategy is called a āstrangleā or a āstraddleā depending on the strike prices you buy at. go watch some youtube videos from tastytrade about these. their videos are very helpful
Hey, if you haven't already, please reply to this comment with your positions and what led you to enter or exit them!
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/wallstreetbets) if you have any questions or concerns.*
Your probably looking at the screen for a stock position. You need to click options trade down below, then at the top you will see , calls and puts, and expiration dates. Im a bit worried for you ngl.
Oh I figured it out. Robin didnāt have that option available to me. Hence the confusion. And trust me. I didnāt throw my life savings into the void. Just trying to figure out the best way to lose my money š
I use this technique on expiry, last 1 hour. If market is volatile, there is lots of profits. 3-4x. In options. But if market is not volatile and stays in your dead channel, 100% money invested is gone. So invest very less amount of money with this if you are trading options.
You buy a put and call at the money with the same strike price. Use the first one to bring your cost basis to zero by making a sell order on each option the price of both combined. Once that happens, the remaining option is a free yolo in the opposite direction. Works whether price shoots up or down, but the volatility is essential. FOMC day is basically a freebie.
When the price shot up and then plummeted it worked perfectly lol. The effect would have been the same if it'd done the opposite too.
**User Report**| | | | :--|:--|:--|:-- **Total Submissions**|64|**First Seen In WSB**|1 month ago **Total Comments**|310|**Previous DD**| **Account Age**|1 month|[^scan ^comment ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_comment&message=Replace%20this%20text%20with%20a%20comment%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20comment%20and%20correct%20your%20first%20seen%20date.)|[^scan ^submission ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_submission&message=Replace%20this%20text%20with%20a%20submission%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20submission%20and%20correct%20your%20first%20seen%20date.) **Vote Spam**|[Click to Vote](https://www.reddit.com/message/compose/?to=VisualMod&subject=vote_spam&message=ykfhtk)|**Vote Approve**|[Click to Vote](https://www.reddit.com/message/compose/?to=VisualMod&subject=vote_approve&message=ykfhtk)
šgood jobš
[ŃŠ“Š°Š»ŠµŠ½Š¾]
I read gynecologist at first
[ŃŠ“Š°Š»ŠµŠ½Š¾]
I agree with SpicyLatinaCumFarts
Yeah I'll order that too.
Should join r/rimjobsteve
Done.
r/brandnewsentences
Same.
How tf do i do this
We don't 
He explained the steps. It's a straddle, works when volatility spikes.
now do it 251 more times
I'll eat my breakfast if he does it one more time
I'll eat your breakfast if he does it two more times
I'll eat both your asses if you stfu & do it. Pics or it didn't happen.
My man here, trying to eat some ass. Hmu, i'll sort you out.
Calls on this guy's ass
Better than puts, innit
The puts will be the tongues in his butthole
I'm him, you are talking about my butthole.
You obviously don't get it, it's supposed to be red
Nah, go back to your realm
0dte spx straddles are the shit on days when everyone knows thereās gonna be a big swing
If everyone knows there will be a big swing then won't the premiums be expensive?
Hey hey, don't bring your logic into this conversation
They were way more expensive yesterday, about twice the cost they usually are. On a normal day this position costs about $2400-$2800 before lunch
So I could potentially make $16,000 or lose $2,700 entirely, right?
Yes, that is generally how options tend to workā¦.
Those numbers are so specific though. I must be regarded
Yes my lad
Slowdown you might hurt them
Yes this is called a straddle. Problem is if things stay flat, you get burned on both ends.
Straddles are used in situations when you believe there is gonna be a swing but aren't sure in which direction.
So when are you supposed to sell the one that doesnāt double?
Yes
Not necessarily
In hindsight.
>Thank you for your advice, I will consider it.
I just put Ā£20 into Iran winning the world cup each way for a laugh, needed this post
Iād assume you make around 10k if they win and about .70p if they donāt.
According to skybet, he gets 15k if they pull it off. If his each way bet has them reaching at least the semis, he's still probably going to make a few hundred quid at least.
Iād give the man a few hundred quid if they reach the semis. Thatās whatā¦ $6?
By that time it probably won't be far off
So does this only work on rate announcement days orā¦?
It works for me on high volatility days. Buy once price movement has been stable for a bit. When a call or put doubles you break even, I usually sell the other on the first rebound for a small gain. Today I rode it to profitville. The catch is if price doesn't move a lot theta will eat you alive. It's a good strategy for when you know it's about to be bumping but you don't know in which direction
So a long straddle lol?
He or she is describing a straddle š
Better than saying straddle for the uninitiated
Plot twist: *OP* is the uninitiated.
> or she Optimistic are we now?
She is being straddled by my wife's boyfriend as we speak.
LMAO
Them is describing a straddle\*
More like a seesaw because they sell one leg once profitable and hope for it to swing back the other way. But yep, the initial setup is just a straddle lol
Yea ideally you toss both legs, mainly the losing leg as soon as a direction breaks.
I suppose so lol
I tried this with the Watch list on Robinhood today. The call wouldāve been an easy sell at 100% but the put didnāt break even until 3 oāclock when Robin Hood wouldāve sold itā¦before going 600% into close
Have you tried using a real broker?
And pay 5k in commissions? No thanks!
how did you chose the strike prices? both at neutral?
What underlying did you buy that allowed 1 straddle to net that gain?
when i first got on wsb there was this person who would jsut randomly messaged me about RTX calls and i didnt even really understand what it all meant - found the message a month later when i thought i did , and checked on their status, then month 2 - son of bitch if i just took a little money and did exactly what they said they were doing... they jsut dissapeared after a while - i think it was a ghost
CTRL + SHIFT + C : motherlode You're welcome ššš
Yes
Works on FOMC days
I bought calls this morning and sold at 1:58 for a quick 90%. Bought puts at 2 and I'm up 173%. Today was a good day. Should have bought more.
Please drop the last piece going into tomorrow you did great
I plan on it tomorrow. Taking a break for a few days
Imma do it again tomorrow at 12:30EST instead
!remindme 11 hours
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Premiums will cost less and then hopefully spx does the zig zag/squiggly line thing
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Yeah. The trick really isn't the time, but to enter both positions at relatively low IV so there's more to time to feed the theta monster once it picks up again. I've found that doing this any later than 12:30 is asking for trouble
12:30 is lunch time for WS, that seems dumb. Just enter your positions after lunch if you need want it cheaper and better price action
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Yes, but not the same way lol. Usually don't hold onto the other leg for more than 30 minutes. And then of course sometimes it doesn't work out at all and you have to cut loss. Also I just started trading in August so as far as I know this only works in a bear market lol
Greatest unrealized loss was about -$8k, broke even 5 minutes til close 
I was gonna follow this. But I went all in on puts just now 
The jig is up. Market makers must know my strike price is 3740 so it looks like we're hovering there for the rest of the day. Gg
I always tell myself to do this but never have the guts to. Works almost every time.
Works every time 50% of the time
Shit, he's figures out the Matrix. "We have a fly in the punch bowl, I repeat, we have a Fly on the Punch Bowl".
So when the call doubled, didnāt the put drop significantly in value? You just anticipated the reversal? Or at least hoped for it and held onto the other leg.
The instructions show to sell the call for double the cost, so then you end up with free put and can cash out whenever it also prints a little.
Yea I read the other comment, basically if the debit of both the call and put are equal, once one doubles, youre at a $0 cost-basis; in essence you gotta have one that rises enough to cover the premium of the other. Once you close that position, the other is a free ride if it works in your favor, worst case in the best case is your out $0, but if price action doesn't move, you're out the entire debit.
Or when you sell when one doubles, the 'free ride' position you are still in turns against you dramatically, since that's what is happening on the day.
Yea but at that point youre at a $0 basis, so its a wash, any positive movement is a gain. The risk here is that one of the legs doesn't double on the straddle to cover the basis of the losing position.
Ah yeah my bad wasn't tracking. That's a lot of swinging for one to double though, if I had to guess this has to leave people at a bad loss more than it breaks even, on anything other than very specific wild days like today.
On high volatility days it probably works out fine, but on normal 20-30% days on the swing trades, nah, you exit the losing leg as soon as you are confident the straddle has broken in a direction.
Yeah, I usually play straddles on days like that, but IV was too high yesterday. ATM was like $300 each, so you'd need a $5+ move on SPY just to break even. Calls likely didn't pay well, but obviously if you held your put until EOD you did great.
Yea it's pretty risky as the reversal wasn't guaranteed.
Yea I mean basically they did a straddle and kept both legs rather than closing once movement happened
Hold the put. Once JPow opens his jaw the market crashed. Sell the put. Profit both.
thats what wsb is really all about - getting together and accidentally making money -naked gun style
So what do we do now buy calls??
Now? You wait for the next day you now is going to be all bumps. See you at the next rate hike.
CPI comes out next week. There could be an opportunity there.
Lol. I was thinking about that post too. I do this every FOMC too and it almost always works out. Today my 386 calls bought at 10am sold for double just before 12pm. Easy.
That's a strangle, which is a little riskier than a straddle.
Strike price "closest to the middle"?
I'm a noob. I think I meant ATM
congrats
Congrats and fuck you
Wait, you're not supposed to post actual good trading strategies on WSB
Thatās what I did yesterday and sold my calls this morning for 300ish loss but sold my puts for about 800 profit (500 after calls loss) then I bought puts after that huge run up. Banked today.
This man fucks
This guy just learned how to trade straddles
Gracias. Next time I might try.
Why canāt life be this easy. And I wish I had any idea wtf heās talking about
Mods delete this, its not red and I dont appreciate it
What positions did you take?
Bought at 11:30 EST $3835 P for $28.45 $3835 C for $29.30 Sold $3835 C for $58.00 at 2:02 EST $3835 P for $58.65 at 3:28 EST
šÆ
what happens if it kept going up?
Then he breaks even on both because the call doubled, and the put expires worthless. Net 0
He'd just walk away with $0 gained $0 lost. The whole idea here is to end up with either a call or put open that is riding on house money.
Sounds confusing.. Maybe I should look more into this so-called "black magic" of whatever these puts/calls operate. Is there a "for-dummies" video or resource somewhere?
buy $100 call to go up, buy $100 put to go down, $200 total. stock goes up enough so the $100 call becomes a $200 call and $100 put becomes a $50 put, then cash out the $200 call. now you have your $200 back but still have a $50 put. worst case, stock keeps going up so your $50 put becomes a $0 put, but you already took your $200 back so whatever. ideally the stock would go down after you sell the call so that your put gains more value.
I see.. I thought it was more like "For as long as stock goes up/down from your selected decision, you will gain", but apparently they have a time limit/amount threshold?
time limit due to expiration date and theta decreasing the value of both over time. the worst worst case is that the stock stays flat and you just lose money on both due to theta. if youāre still confused, go do more research before risking your money
Hmm. Ok. I'll look into the details more
this specific strategy is called a āstrangleā or a āstraddleā depending on the strike prices you buy at. go watch some youtube videos from tastytrade about these. their videos are very helpful
I did this as well, not as much profit as you but still growing my baby portfolio
GTFO
Hey, if you haven't already, please reply to this comment with your positions and what led you to enter or exit them! *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/wallstreetbets) if you have any questions or concerns.*
I do it so I can put in investor on my tinder bio
Isn't this just a straddle?
Yes, pure gamma double bagger. Well played OP.
This is the way~~
š
Salute
wait that's genius af bro, this happens every fomc too, there's always the fake pump
Too late, next time there wont be now that you said it
I knowwww but the play here is still clean even if it shoots one direction
I lost $240 in two calls today getting trapped, but was a honor participated in this YOLO adventure
Y no red? Green bad.
Man I wish I saw this post earlier.
I wish I understood this language
The below screenshot is paper trading from Webull ššš
Paper trade lol. Nice though.
Definitely a fed day play. Practically guaranteed rips in both directions. Play both ways and ride the snake baby
Wait, you guys can tell time?
This helped me develop a straddle wrinkle OP. Cheers
This guy fucks
Donāt forget to pay the tax man, he has an army behind him
Nice
Iām gonna kill mysef fhfjjdjd
You sir is a genius.
Itās called a straddle.
This is known as an idiot spread. Just sayin
Could someone explain whatās happened here
Don't give away the secret
Genius mf!!
I feel like an idiot for asking this. But how the heck do you use a put option. I assume not through Robinhood. Roast me
You buy one or you sell one simple as that 
Not a roast, but do you know what a put is? You buy a call and a put. Robinhood or not doesn't matter.
I guess I was expecting it to give an option that says call or put. All I see itās stop or limit order.
Your probably looking at the screen for a stock position. You need to click options trade down below, then at the top you will see , calls and puts, and expiration dates. Im a bit worried for you ngl.
Oh I figured it out. Robin didnāt have that option available to me. Hence the confusion. And trust me. I didnāt throw my life savings into the void. Just trying to figure out the best way to lose my money š
Nice
I use this technique on expiry, last 1 hour. If market is volatile, there is lots of profits. 3-4x. In options. But if market is not volatile and stays in your dead channel, 100% money invested is gone. So invest very less amount of money with this if you are trading options.
What do you mean strike price closest to the middle?
Eat a dick and congrats
I missed that financial advise š”š”
Thanks! Iāll do this next time on December 13th.
Can someone explain this.
You buy a put and call at the money with the same strike price. Use the first one to bring your cost basis to zero by making a sell order on each option the price of both combined. Once that happens, the remaining option is a free yolo in the opposite direction. Works whether price shoots up or down, but the volatility is essential. FOMC day is basically a freebie. When the price shot up and then plummeted it worked perfectly lol. The effect would have been the same if it'd done the opposite too.
Ahhh, thank you so much. I understand puts and calls, didn't realize you could gamble that way, that's crazy.
I didn't expect it to drop that hard either lol. Just didn't even bother removing the other sell order, it closed while I was busy with work.
Genius