High risk investments

>>1855755
Options.

>>1855755
Out of the money options are pretty high up there

You can control the risk/reward ratio for any investment by using leverage. So if you want to increase the stakes, lever it up.

Futures are inherently leveraged. Options are inherently risky.

Actually, I've got a specific one.

>Write option
>Use money from writing it to buy the opposite option

Write put, buy call. Buy call, write put. If you really want to risk losing your ass go ahead.

>>1855820
Isn't using leverage borrowing money?

>>1855840
No. It only counts as leverage if you're interest is less than what you make from your investments.

The more of a spread you have, the more leverage you are said to have.

I guess you could autistically say that you could have 'negative leverage' if you're actually losing. But that's not usually what people mean.

ETH

Cryptocurrencies

>>1855892
Lemme see if i have this right.
With something like robinhood gold, the 2,000 or so shekels they give me to invest is the leverage. If i go and put all 2000 of it into a stock and then it plunges, am i up shit creek or what?

>>1855775
Any strategies for OTMs?
On a first look it is like buyng lottery tickets.

>>1855920
I don't know anything about RH or their lending policies. But here's the rundown:

I borrow, say, 100k at 4% and invest it. My returns at the end of the year are 7%. Which means I made 3% or 3k.

Now, what's my ROI? Here's where it gets interesting.

If I put down 20% or 20k, I actually made 15% on my money. If I put down 10% or 10k, my ROI is 30%. And if I didn't put anything down, my ROI is technically infinite.

But in the same way that leverage magnifies wins, it also magnifies losses.

HTH

>>1855927
I haven't spend too much time on OTMs but here's a super short compressed intro:

Lottery ticket: Very clear variance, easy to model, easy to price.

OTMs: Unclear variance, maybe impossible to accurately model, hard to price.

That is, we don't really understand very unlikely events and statistics doesn't help. This leads to those events being wrongly priced. You can try it yourself.

Example: Look at a normal distribution (mean = 0, std = 1), then look at the tails, e.g. 6 sigma. Now change your std by just a little bit. Suddenly the area under the tail explodes. I.e. a small change in your estimate changes drastically the probability for very unlikely events.

>>1856084
I'm gonna research it.
There has to be some indicators. Maybe focus on specific markets first.

Bank robbing
Organ harvesting
Kidnapping
Mercanary
Drug traffiking

Anything illegal/life threatening

>>1855755
Lepen coin

>>1855755
Roulette , levered ETFs

>>1856164
OP said high risk friend.

Stock tickers MMEG and KGET

MiloCoins, get em while they're hot!

>>1855908
this

>>1855827
wow, why has nobody ever though of that before.

>>1858515
Where can i buy these ??

>>1859068

They have. If you're wrong you just lose your ass... and your house.

Small cryptocurrencies.

>>1855946
You are a little off here on you ROI.
If you borrow 100k at 4% then your initial investment is 4k no matter what because if you make 0% returns then you still have to pay it.

>>1855946

RH does not lend like that lol

It is not meant as a day trading thing, is meant for long term investments and will flag you for day trading.

there is no margin trading on RH

>>1855827
> write put
> buy call
That's a long future ya dingus. Except you're making two transactions so it has twice the fees.

>>1855755

Options are great. I've doubled my money overnight before. The game is simple. Just don't be wrong.

>>1856147
I wouldn't consider any of these things particularly high reward. Certainly not for the amount of risk you take on.

>>1859732
Are you retarded?

>>1859424
>>1857582

>>1859837
If you borrow $100,000 with $104,000 then you have invested $4000 of your own money.
If you make 0% returns then you have lost $4000.
If you make $4000 then you end with $0 which is not a return on investment.
So are you retarded?

File: 1489277211078.jpg (45KB, 881x630px) Image search: [Google]

45KB, 881x630px

>>1855755
Small cap. Stocks

>>1855755
Yourself.

>>1859764
Wrong on all counts.

Robinhood gold is their margin program.

All account under 25k will be flagged for day trading, it had nothing to do with the brokerage.

>>1859732
That doesn't sound right. Why would your return be equal to your investment?

I did fudge the math a bit, though, now that I look at it more closely. Let me correct it.

Here's how it breaks down in my mind for the 20% down case:

Total investment 100k
Downpayment 20% = 20k
Loan amount = 80k

Now, after one year, interest paid is 4% of 80k = 3200.
Return on total investment is 7% of 100k = 7000
Net return = 7k - 3200 = 3800
ROI = net return / cash outlay = 3800 / 20k = 19%

So, actually the return is more than what I had calculated originally, since I miscalculated the interest. Should have been only 3200 not 4000.

And, as your downpayment shrinks, your ROI grows.