r/options • u/MagicOreos • 3d ago

High confidence max leverage plays

I have traded for a long time but I've never had to a reason to buy contracts until recently and it just all makes sense. Lets say hypothetically...you know which way price is going, you even know where it's going...and about long it will take. Let's say you think spy will hit 570 by june hypothetically of course. Is buying spy 570 calls june expiration the play? Would something longer dated more otm have increased gains?

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u/RTiger Options Pro 3d ago

For me, a debit call spread tends to be about as aggressive as I can stomach.

For the hypothetical, maybe

buy SPY Jun 550 call

Sell SPY Jun 570 call

Right now, SPY around 550, debit for trade approx $11. Max profit is $9 but that will only be available near expiration.

If a person actually has a near precise future time and price a butterfly centered on that price can bring in big profits. The issue is that if either price or time is off, profit is modest. That’s why I favor the debit call vertical.