FULL DISCLOSURE: I DID NOT MAKE SIX FIGURES ON THIS TRADE (and I'll fully explain how I butchered this massive opportunity)
BOEING INTERNAL EMAILS SHOW THEY KNOWINGLY MISLED FAA ON 737 MAX
Never is this more apparent than on Expiration Fridays when we can purchase cheap options, and ride them into the money where their value can explode exponentially.
Spike. Bounce. Then its decision time. Will it float back up? Or break to new lows?
If you are fast you can do well scalping and locking in before/into the bounce. If you miss the Spike, its almost better to wait for the bounce, then put your position on when nearing/breaking to new lows.
So I chased the 357.5 puts, paying $0.52 for 100 lot (more than my original bid in the 360 puts).
I risked $5200 for 10,000 shares of $BA short exposure (or $3.65M in short stock)
I lost ~$2000 whereas the max gain on the trade was $137,500
I'll take that risk/reward as much as i can get it.
Now off to Best Buy for a new keyboard.
It doesn't matter that we all know better we still need to overcome our demons daily.
The max potential of those three positions would have been about $400k.
You can live very well inside these moves when seeing things clearly.