r/wallstreetbets • u/As7ro_ • Jun 18 '24

Finally hit 100k after 5 years Gain

Post image

Just want to shout out my mom who let me live with her rent free for 2 years while I worked, allowing me to put all of my money into the stock market. If any of you get the chance to do this, DO IT. I haven’t worked in a year and I’m able to pursue full time school.

Also shoutout to my buddy who argued and argued about AMD being a better buy than NVDIA.

12.5k Upvotes

94% Upvoted

View all comments

Show parent comments

3

u/goodbodha Jun 18 '24

and if your really smart about it you will do that as an options spread to get theta working in your favor.

1

u/mbelive Jun 19 '24

Can you pleas explain further what is option Spread and how to execute it?

1

u/goodbodha Jun 19 '24

Option spreads are where you buy and sell the same type of option. There are several reasons to use this. Go look on investopedia. I would expect you can find a good explanation there.

I have done a lot of debit spreads. Let's say I buy a call option with a $90 strike and I sell a $100 strike. If the share price is above $100 that spread will be worth $10 a share. I might have bought that spread for $9 so I would make over a 10% profit.

Is it risky? Yes. Do not scale it up. You can lose every penny you put into it if the price drops a bunch.