Can someone help me with playing the lottery

This is a discussion on Can someone help me with playing the lottery within the First Steps forums, part of the Reception category; I don't have any experience with options. I was thinking of something like buying £10000 of options a year (puts ...

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Old Jan 11, 2013, 4:52pm   #1
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Can someone help me with playing the lottery

I don't have any experience with options. I was thinking of something like buying £10000 of options a year (puts on FTSE 100 i think) that have an expiration date of 1 year (if possible). If the stock market collapses to around half its value (3000) then how much money do I stand to make?
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Old Jan 11, 2013, 5:48pm   #2
 
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Re: Can someone help me with playing the lottery

Depends on what option strikes you buy. If you bought puts at 6000 you could stand to make a lot of money - however they would be expensive and if the market didn't collapse you could easily lose the lot.

i think you need to abandon this idea until you full understand options and how they behave. To be honest your strategy sounds like suicide.
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Old Jan 11, 2013, 6:05pm   #3
 
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Re: Can someone help me with playing the lottery

I don't know much, but one thing I do know is that making a straight directional bet on the markets like what you are wanting to do, is incredibly risky.

An options play that is 100% directional like that is about as bold as it gets. Theta is your enemy, when you're buying options.

On the plus side, volatility is low, so buying some LEAPS to protect your portfolio from downside risk might be a nice play if things heat up later in the year, but making a straight bet like that is asking to kiss your money goodbye.
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Old Jan 11, 2013, 9:50pm   #4
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Re: Can someone help me with playing the lottery

aparoid89 started this thread I know I can stand to lose all my money. I'm just wondering say I do this for 7 years and each year I lose £10000 and on the 8th year the market collapses to 3000, how much money would this bet make?

Kinda like buying £10000 of lottery tickets a year and waiting to hit the jackpot.
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Old Jan 12, 2013, 4:49pm   #5
 
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Re: Can someone help me with playing the lottery

do it!! but wait till the ftse hits MAJOR resistance, and keep an eye on the Support levels on Daily charts
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Old Jan 12, 2013, 5:26pm   #6
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Re: Can someone help me with playing the lottery

aparoid89 started this thread
Quote:
Originally Posted by Michaelball View Post
do it!! but wait till the ftse hits MAJOR resistance, and keep an eye on the Support levels on Daily charts
Well that would be 6750
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Old Jan 12, 2013, 5:50pm   #7
 
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Re: Can someone help me with playing the lottery

Quote:
Originally Posted by aparoid89 View Post
Well that would be 6750
its 6,200 about now, if your serious about 'Put' options id wait till all this serious economic news in the US is over with, no need to rush into such a big trade like that with just hope. hedge it 25% with a 'call' on a stock like Samsung or Google, although Google is rather heavily traded so is quite volatile in price. Samsung in the long run seems more calm
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Old Jan 12, 2013, 6:56pm   #8
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Re: Can someone help me with playing the lottery

I have a better plan. Forex regularly (many times a year) makes 1000 pip moves. If you bet £10k correctly, that will give you £10 million.
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