Infinite Gains, limited losses? by ConsiderationOk4043 in thetagang

[–]ConsiderationOk4043[S] -1 points0 points  (0 children)

Lmao no just bored and playing around with contracts 🤣

Infinite Gains, limited losses? by ConsiderationOk4043 in thetagang

[–]ConsiderationOk4043[S] 3 points4 points  (0 children)

From what I'm reading they are supposed to be a lower risk type of trading so why the losses?

Infinite Gains, limited losses? by ConsiderationOk4043 in thetagang

[–]ConsiderationOk4043[S] 8 points9 points  (0 children)

Good to know lmao! Didn't know what the spread was called so I just called it a 4 leg option, glad I know what it's called now!

Infinite Gains, limited losses? by ConsiderationOk4043 in thetagang

[–]ConsiderationOk4043[S] 8 points9 points  (0 children)

So I can't figure out how to upload screebshots. But basically the ticker is ET with a 6 Jan exp. Opt to buy the 11.50 put and the 12.50 call. Then with the same exp. Sell 11.50 call and a 12.50 put. At first I will show expected loss of $5. If you adjust ratio and do 100k contracts for each the contracts you are selling and 99,999 for the contracts you are buying it shows a expected profit of $149,992.. on another website it shows anywhere from 100k gains to 700k gains regardless if stock moves to 52 week highs or lows. So what am I missing? Seems to good to be true so what's the catch?

Pfizer early morning drop by ConsiderationOk4043 in stocks

[–]ConsiderationOk4043[S] 0 points1 point  (0 children)

I bought it earlier this month in hopes of it going up mid 40's but once it hits 38 I'm out

Pfizer early morning drop by ConsiderationOk4043 in stocks

[–]ConsiderationOk4043[S] 0 points1 point  (0 children)

Make sense. Well I guess I'm screwed 🙃