Once they entered this hardcore banking world they seemed like pawns in all this , those 30 mil seemed peanuts compared to the big players, they were like two high school brats
Please, more videos like this and how they operated during the 2007 crisis, with the banks from within or from outside? How can this strategy be followed? thank you very much very good video.
Question: Did they buy way out of the money options, or did they do the at the money options in the example you used? Would it be beneficial to buy the cheap out of the money options to get additional leverage given the long time to expiration?
One day someone will be able to do this with NVIDIA.
is this type of trades possible in today's scenario ..... i mean same calculation of options and availability of far away expiry option contracts
The problem with this strategy is knowing when to sell. You only make "90 thousand" in the put example if you just happen to know to sell at the very top, which is mostly chance. Granted, you can still get good returns, but just looking at the most you could have made on a historical chart doesn't really tell you about what a real investor would've done. If you finally broke even after the call was in the red for many months, you still have no idea whether it would continue to go up, or go down back down again. You didn't show a LEAP that continually went down and never recovered, for example, which is what many of them do.
Were these guys day traders ?
I know the guy lol he is a genius
Awesome vid! So basically what they do is buy leaps on stocks?
hi, great video....how much far away option can a trader buy ....is there any liquidity on those options i am from India in stock options i can only buy upto next 3 month expiry...for example if i want to buy certain stock option and the month is january then i can only buy up to march expiry but liquidity is only in the current month expiry not in far away expiry options
Does this still work ?
Except... they had capital piled on in between those two figures. Probably helps when your Dad heads up a major PE firm.
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