The Investment Thread

Now you are seeing what I'm seeing.

Now look at put prices for stocks like TSLA and AAL. $5 January puts for AAL get very little discount even 50% out the money. When you see everyone on one side of the market like this it sets up huge potential the other way. Particularly with so many sitting on the sidelines waiting for a buy spot. All those put buyers deep in the money are also stock buyers. Shorts have to cover as well. A little good news can drive a 3% upswing and that 3% upswing can turn into a 10-15% rally. Happens way more than people realize early in bear markets with high volatility. There are even some that bet on those days with short term calls for pennies. They'll loose 10 weeks in a row then hit one of those dead cat bounce days and make it all back 10x.

That's why I did so well on the recent spy tank. When everyone was long I bought puts way out of the money.

Now I bought calls way out of the money.. 410 July 15, but they were dirt and worth the risk.