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Need help finding a way to trade with a 1/100 (risk/reward)


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Need help finding a way to trade with a 1/100 (risk/reward)

  #11 (permalink)
ChrisDouthit
San Francisco CA USA
 
Posts: 40 since Jan 2020
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What's the time frame?

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  #12 (permalink)
 
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 TheShrike 
Bridgeport, Ct
 
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anycolour View Post
Could someone please point me to a relatively safe trade with a 1/100 Risk Reward.

No, a safe trade with a 1/100 risk reward doesn't exist.




anycolour View Post
For example, I'm willing to risk all of $10k (and lose it all) in order to potentially make 100 times of it which is $1 million.

I'm not looking for a trade, but a way to best make the trade. That is, using which instrument: options, futures, stocks, pairs, forex, options on futures, etc.

I'm guessing options would be the way to do this, but which option strategy is most likely to potentially provide what I'm looking for? E.g., spreads, iron condors, butterflys, etc. I really don't know much about options, except straight calls and puts.

Some parameters on the trade I want to make, which might help you in answering my question:
I plan to make a short trade, in a fast downward movement environment with increasing volatility.
I will be looking to stay in the trade for about 250 days (I will exit the trade after ~250 days).

Well, actually, while you're at it, if you could tell me what exactly would potentially have the best chance to provide a 1/100 risk/reward in the scenario outlined above: /ES, TVIX, /GC, etc.

Thank you!

However, if you are hell-bent on gambling your money on an extremely unlikely event, IE less than a 1 in 100 shot, your best bet is using options. Purchase large amounts of extremely out of the money calls or puts on a meme stock that is soon to report earnings and hope for the best. Good luck!

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  #13 (permalink)
ChrisDouthit
San Francisco CA USA
 
Posts: 40 since Jan 2020
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There is certainly no trade that is safe for you can make 100 times or money. You basically have a 99% chance to lose.

If you really want to jump in a trade like that I would recommend something in the cryptocurrency space.

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Last Updated on February 12, 2020


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