stock market crash

[DealorNoDeal]

Your issue is you can be "not wrong" but still lose it all, because, in your mind, so long as it happens at some point in the future, then you called it and you were "not wrong".

Definitely with options.

You're better off with a leveraged short ETF (or CFD or spread bet), which at least doesn't erode just with the passage of time.

Eg. 3UKS (3x UK Short)

http://companyresearch.digitallook.c...gi?csi=3709027

[scooterscot]

The trouble is the option could end up worthless if your timing is out.

The only way I made money on them was jumping in and out in fast moving markets. They bleed in sideways markets.

As we all know we can't time the markets. The probability of a reversal is far greater than a continued uptrend.

Sideways price action is a killer for sure.

The mother of all cloud formations is building up here in the foothills of the Alps - I think a storm may be coming.

[scooterscot]

Rolls Royce got a lot of it's income and profits from servicing jet engines, which are serviced according to hours flown. Since planes have not been flying as much, their revenue has vanished. So the fortunes are tied in tightly with lockdowns and people's appetite to travel.

Some customers buy the engines and as you say others lease them.

The management missed a trick IMO not focusing more on the energy sector with Gas turbines. They are / were all set up to ramp / scale up and sat on their asses focusing heavy on one egg.

[scooterscot]

Definitely with options.

You're better off with a leveraged short ETF (or CFD or spread bet), which at least doesn't erode just with the passage of time.

Eg. 3UKS (3x UK Short)

http://companyresearch.digitallook.c...gi?csi=3709027

Don't do leverage - one of my cardinal rules. Never never play with leverage. These products come across for the 'get rich quick' brigade.

[TheGreenBastard]

gwd you're not kidding - £70k down the tubes so far, since you ask.

I will confess, I was early. But I'm not wrong.

So current position is 250-70=180K? (If you liquidated)

How large was the crypto put? You still HODLing?

As we all know we can't time the markets.

"A put option is a contract giving the owner the right, but not the obligation, to sell–or sell short–a specified amount of an underlying security at a pre-determined price within a specified time frame."

[DealorNoDeal]

Don't do leverage - one of my cardinal rules. Never never play with leverage. These products come across for the 'get rich quick' brigade.

Eh?

What about your 3x short Ether?

And BTW, Options are inherently leveraged. That's why people trade them (more bang for the buck).

[Old Greg]

Eh?

What about your 3x short Ether?

And BTW, Options are inherently leveraged. That's why people trade them (more bang for the buck).

...

The only thing that really worried me was the ether. There is nothing in the world more helpless and irresponsible and depraved than a man in the depths of an ether binge. And I knew we'd get into that rotten stuff pretty soon.

[ns1]

Most people trade options for the leverage. The option amplifies any move in the underlying. Get it right, and you win big; get it wrong...

The rub is the underlying not only needs to move in the right direction but it also needs to move quickly, otherwise any gains are eaten away by the time decay.

For longer holding periods, other derivatives may be better than options.

[Andy2]

Eh?

What about your 3x short Ether?

And BTW, Options are inherently leveraged. That's why people trade them (more bang for the buck).

maybe scooty did not know that
he is much wiser now and poorer

[BlasterBates]

Most people trade options for the leverage. The option amplifies any move in the underlying. Get it right, and you win big; get it wrong...

The rub is the underlying not only needs to move in the right direction but it also needs to move quickly, otherwise any gains are eaten away by the time decay.

For longer holding periods, other derivatives may be better than options.

You need a stop loss, if you win then you double your money if you lose you cut at 25% for example, then you need to get it right 25% of the time to break even.

I don't trade options, but that's how the pros do it. I used to know someone who traded options, usually one at a time for several weeks.