How to beat S&P 500 in the next month
$Amazon.com(AMZN)$ Today saw large straddle options orders totaling over $5 million:
$AMZN 20220916 130.0 PUT$ & $AMZN 20220916 130.0 CALL$
The break-even point for this large order is $130(strike price)+13.95(call price)+1.5(PUT price)=$145.45
In other words, if Amazon rises above $145.45 on September 16th, the crossover strategy will be profitable.
In other words, Amazon will only need to rise 2% in the next month. Is it similar to the crossover order that Tesla will rise 4% and make a profit?
Want to exceed the market yield method one is low absorb high throw, want to compare troublesome nevertheless.
The second method is to earn the time value of the option by using the sideways trade, and the sell put can be timed, which is simple and easy:
| Ticker symbol | Annualized income | Expiration date | strike price | Premium |
| $TSLA 20220826 800.0 PUT$ | 8% | 2022/8/26 | 800 | 1.95 |
| $AMZN 20220826 135.0 PUT$ | 19% | 2022/8/26 | 135 | 0.66 |
| $GOOG 20220826 118.0 PUT$ | 26% | 2022/8/26 | 118 | 0.8 |
| $JPM 20220826 115.0 PUT$ | 9% | 2022/8/26 | 115 | 0.28 |
| $SBUX 20220826 85.0 PUT$ | 14% | 2022/8/26 | 85 | 0.3 |
| $DIS 20220826 117.0 PUT$ | 7% | 2022/8/26 | 117 | 0.22 |
| $ATVI 20220826 80.0 PUT$ | 26% | 2022/8/26 | 80 | 0.51 |
| $VMW 20220916 115.0 PUT$ | 13% | 2022/9/16 | 115 | 1.35 |
Not surprisingly, I added Amazon to the Sell put, a stock selected to move sideways by a large order.
Because expectations of a September rate hike have more impact on growth stocks. Uber suggests changing seats: $UBER 20220916 30.0 PUT$
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Nice