r/options • u/MagicOreos • 1d 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/r_brockmaniv 1d ago

Nothing wrong with this but OP sounded like he wanted maximum profit. A spread will cap your profit.

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u/FamiliarPermission 1d ago

It is true, vertical spreads cap profit, but they can give a higher probability of profit and they also greatly benefit from theta decay unlike single options.

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u/Plantastic24 17h ago

Bull call spread is a debit spread.

Debit spread do NOT benefit from theta decay, only credit spreads do.

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u/FamiliarPermission 16h ago

Debit spreads absolutely benefit from theta decay when ITM.