Rates are crashing and fuel to the moon!

look at this crazy option chain. FedEx TANKED over 20% after market close yesterday. There was not one hint of terrible news that would’ve justified that insane of a drop. BUT after looking through its option chain there was about 1600 165puts bought yesterday (which means someone was betting that fed ex would drop to 165 by today) there’s ZERO way a retail trader would’ve been ahead of that move.

1k worth of put options turned into 271k. Several strike prices were up over 100,000% return.

Talk about insider information.

 

I'm thinking the 2.0 thread is more suited for him versus this one. Those guys pull in $5k taking a load across the street. Over here the struggle is real, roller dogs and chef boyardee is typically what's on the dinner menu.

 

Someone was just saying on TTR a day or two ago that if you work for Fed Ex to be on the look out because they were getting ready to make major cuts. That info alone could have been helpful to a trader.

Explain to me in terms of a kindergartner how using $1000 in money, and the stock dropping 20%, turns into 271k with no margin used?

 

I’m the one that said be careful of fed ex, but didn’t feel justified enough to play puts on it.

Kindergarten terms:
1k -> 271k would only happen because your playing options. There’s things called the Greeks (delta, theta, gamma) that all mathematically work together to change the money around.

when you buy an option way OTM (out of the money) with a SHORT expiration date on your contract (these were 0dte days till expiry), if the price of the particular stock your playing goes to your strike price and you become increasing ITM (in the money) your gains increase exponentially.

As simple as I can make it is
- options will move money like no other, gain or loss.
- stocks DO NOT work like that.

just look that picture: those are legit return percentages. Millionaires made overnight if they positioned.

 

The same reason an owner op truck driver can make 30k+ a month , but always a great idea to have 50k+ minnimum in reserve for when something bad happens.. Trading is no different

 

So the couple trillion that went up in smoke this week..................the fed will put that back?

 

The only honest guy I ever met that fooled with day trading told me about how he was fully retired then lost his ### in a few months.

Drove at Landstarve for 12 years. Fully retired. F it all away in 8 weeks. Back driving at Landstarve lol. Really nice guy. Really honest guy.

 

Here's another $1.5 trillion gone out of main street America this year. The fed do this too? They taking $90 billion a month or $90 billion a day???

I know!!!!! Let's ask the two people at the top of our government.

 

nah, they gotta take their gains my dude

 

Who is they?