Posted by DigiNomad on 3rd of Apr 2024 at 02:39 pm
"Odds favor higher" - but it can be a 99.9% probability of gain
and it's still possible to lose....just ask anyone selling 16 delta
calls on the indexes for the last 5 months. They had a >80%
chance of the calls expiring worthless each time but they lost 100%
of the time (I might know someone who got burned a couple of times
in this trade). Probabilities are no match for a money
printer.
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"Odds favor higher" - but
SPX 10m ... you know it's going up ... ;)
Posted by DigiNomad on 3rd of Apr 2024 at 02:39 pm
"Odds favor higher" - but it can be a 99.9% probability of gain and it's still possible to lose....just ask anyone selling 16 delta calls on the indexes for the last 5 months. They had a >80% chance of the calls expiring worthless each time but they lost 100% of the time (I might know someone who got burned a couple of times in this trade). Probabilities are no match for a money printer.