Submitted by 3week_old_cheese t3_z8m1n5 in wallstreetbets
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Comments
[deleted] t1_iyc6biv wrote
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3week_old_cheese OP t1_iyc6cna wrote
Nah I mean at the same time with one slightly larger than the other so you either make a small profit or lose nothing
Ok-Reputation-1643 t1_iyc6djt wrote
Stay in school.
​
Jokes aside, if you cover every investment exactly with the opposite play, then you'll slowly lose money to transaction costs as it's impossible to gain anything.
RoutineAspect8116 t1_iyc6e3f wrote
This sounds oddly like immediately covering your short position...
Am I missing something here?
3week_old_cheese OP t1_iyc6p02 wrote
Your right I was forgetting about transaction costs but is it possible to avoid transaction costs
DidYouReadThatThing t1_iyc6p5z wrote
Classic infinite money hack. Don’t let the SEC find you.
master_perturbator t1_iyc6tga wrote
Just buy an ATM put and call on SPY when it's sitting at VWAP, go about a week or two out and you should be able to profit from both a little if you're not greedy.
Augustus-- t1_iyc6x8c wrote
>but is it possible to avoid transaction costs
With crime, maybe
3week_old_cheese OP t1_iyc6yh8 wrote
Sorry am very very new to this stuff what do those abbreviations mean?
3week_old_cheese OP t1_iyc71e5 wrote
It’s basically that but the long/short with slightly more money in it would make a slight profit
master_perturbator t1_iyc774z wrote
SPY is an ETF based on the s&p500. It follows the market. VWAP is volume weighted average. You can set up your chart on your brokerage app to display the VWAP. It's like an anchor the price rebounds to after reaching highs or lows. It's middle ground. If you buy an at the money put and call when the price is at VWAP, you can profit on the price movement of both directions with equal chances of the same movement happening either way. If you set limits on your profits, and don't try and time it yourself you can do good.
Edit: It also protects you so if it runs away in one direction you can cut the loser off and let the other one run with the profit.
Equivalent-Half-964 t1_iyc7avd wrote
Wouldn't the above be exactly the same as just buying one share? Transaction cost aside
3week_old_cheese OP t1_iyc7fex wrote
Ok thanks I’ll give that a shot
master_perturbator t1_iyc7nh4 wrote
It's basically what your thinking of doing. The basic strategy. You can also sell positions on margin and profit from time decay if the price goes sideways all day. Look up basic options strategies.
3week_old_cheese OP t1_iyc82hb wrote
What’s a theta crunch?
TendyChaser t1_iycay10 wrote
Invest life savings and report back.
VisualMod t1_iyc6706 wrote
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