Early in the year both Matt and Steve did a great job of warning
us that the market was going to tank big time. In April I looked at
a number of leverageD positions on both SPY and especially on QQQ.
The market at the time was at +-4300/4400 and I placed
November/December spreads at around 3600/3700. These cost say $200
to place and the upside was capped at $2000 which is the 10 to 1
ratio. The highest ratios were obviously for the leveraged
positions such as SPXU, SQQQ, TQQQ, SPXL, SH and SDS.
Hope that helps.
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Can you explain 10 to
09/22/2022-My Trading/Investing notes: There is often a lot of discussion ...
Posted by watcdy on 22nd of Sep 2022 at 07:56 pm
Can you explain 10 to 1 ratio
Hi Watcdy, Early in the year
Posted by mundy on 23rd of Sep 2022 at 01:32 am
Hi Watcdy,
Early in the year both Matt and Steve did a great job of warning us that the market was going to tank big time. In April I looked at a number of leverageD positions on both SPY and especially on QQQ. The market at the time was at +-4300/4400 and I placed November/December spreads at around 3600/3700. These cost say $200 to place and the upside was capped at $2000 which is the 10 to 1 ratio. The highest ratios were obviously for the leveraged positions such as SPXU, SQQQ, TQQQ, SPXL, SH and SDS.
Hope that helps.