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r/wallstreetbetsr/wallstreetbets· u/Sp0kenTruth· 4d agoYOLO 0

$1,000 to $25million.......

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Author shares a hypothetical math experiment on how perfectly timing SPY options intraday could turn $1,000 into $25 million.

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i had the best trading day of my career today over 2600% but left a lot at the table due to not being greedy. its crazy how just 1 trade can change everything

Thought id do a fun math experiment on what would happen if you bought at the top/bottom(unlikely). What has been your best day / week of your trading life? share below.

Leg 1: The Puts (9:50 AM to 12:40 PM)

  • The Trade: At 9:50 AM, with SPY at $745, you buy the $730 Strike Puts. Because they are $15 out-of-the-money with hours to live, they cost a premium of roughly $0.03 per contract ($3 total per contract).
  • The Exit: At 12:40 PM, SPY is at $723.28. Those puts are now in-the-money by $6.72. Including remaining time value, they trade for roughly $7.00.
  • The Yield: A $0.03 to $7.00 jump is a 233x return (23,233%).
  • Portfolio Balance: Your $1,000 has grown to $233,333.

Leg 2: The Calls (12:40 PM to 3:05 PM)

  • The Trade: At 12:40 PM, you roll all $233,333 into $734 Strike Calls. With SPY sitting at $723.28, these are $11 out-of-the-money and priced back down to a rock-bottom premium of $0.03.
  • The Exit: At 3:05 PM, SPY flies up to $737.25. Your $734 calls are now in-the-money by $3.25 and selling for roughly $3.25 intrinsic value.
  • The Yield: A $0.03 to $3.25 jump is a 108x return (10,733%).
  • Final Portfolio Balance: $233,333 multiplied by 108 equals $25,199,964.
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