r/options community

Both top-voted comments suggest putting money into SPY over a decade to compound growth rather than risking it on options. The thread’s critique of gambling implies SPY is a lower-risk, reliable long-term vehicle for rebuilding capital. Buy and hold SPY to recover from losses, avoiding short-term speculation. No explicit counter-arguments in the thread; implicit risk is missing out on higher returns from active trading, but community views that as too risky.

The community observes that 3X LETF LEAPs require sustained daily gains to overcome volatility decay; chop or drawdowns are destructive. A major selloff followed by a definitive bullish catalyst (vol crush, Zweig Breadth Thrust) can create a regime where daily up-moves are large enough to make LEAPs profitable. A highly speculative, event‑driven long on TQQQ LEAPs is only viable after a deep correction and a strong reversal signal — otherwise the strategy is likely to lose money. Any sideways or choppy price action decays the position; a single large down day can wipe out gains; the strategy is not recommended for normal bull markets.

The premium for a short-term, deep out-of-the-money put (e.g., $600 strike) is described as "insane" at $6500. Selling this put allows the trader to collect an exceptionally high premium, likely due to high implied volatility and perceived risk, which may be overstated. The potential reward from the premium justifies the risk of being obligated to buy shares at a strike price far below the current market price, assuming the stock does not collapse. Other community members highlight "crazy high premium and spreads are wide," indicating significant liquidity risk and potential difficulty entering/exiting the trade at fair prices.