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.

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