That is an Evan Aga saying. I agree completely.
No, you can’t expect to 10X your money every day, but every day the opportunity is there, and some financial instrument experiences 10x growth each and every trading day.
Two years ago I had this post: https://blog.agafamily.com/2024/03/15/the-best-trade-of-my-life-so-far/ Well, market action the last 2 weeks has been powerful. Seems like it took about 4 weeks for no one to care about politics and look ahead to mega-cap earnings next week.
10 days ago (8 trading days ago) I picked up this position.
This was the morning that orange man suggested that a whole “civilization” might die tonight (it was going to be bridge and power plant day rolled up in one). I figured either way, there was a chance that was a possible short-term bottom and figured I’d throw $1k at it. A call expiring in a week and a half. Figured the most I could lose is $1,260.
Sold call 1 Monday morning for ~$30,
2nd call Wednesday morning for ~$250
and the call expires cash settled tomorrow morning at ~$860. Have to use the symbols XQO and XQC on ToS to see settlement price
On the one call held to settlement that is $420 to $86,000. A 200x return. Actually 204X. I mean just 4X is a huge, huge win. This is 204X. On a pure percentage basis, this one is even bigger than my NVIDIA trade a couple years ago. Wish I had bought 30 contracts instead of 3.
Or 100 contracts. Can you imagine? You could have turned $42,000 into $8,600,000 in the last 10 days. Profits unlimited, risk defined. This is what options trading is all about, especially for me — I like to swing for the fences from time to time.
Lessons: Politics is short term. It does not lead/drive the market. Earnings expectations do.
Even with the Strait of Hormuz closed and oil at $150 a barrel, how will that affect META’s $60B of annual earnings, or their $210B of annual revenue? Maybe a few people cut back on their ads and they go to $50B earned on $200B of revenue. I still want a piece of that. I was dumb to sell a couple weeks ago.
Oh well. Glad to have this win. This gets me back to market performance for the year in this account. Nothing more. Yet.
Note — holding this security violates my 5 day rule. But — not sure what to say. Maybe eliminate the rule?