By analyzing the 12 most significant single-day declines in the SPY stock over the past 3 years, we find that the average drop was approximately -3.5%, with the largest one-day decrease being -4.3% on 13-Sep-2022.
Considering the present price of $450, a 4.3% decline would translate to approximately $20.
Given this information, the notion of establishing an Iron Condor strategy with an exceptionally wide range and fully utilizing contracts each day might lead one to assume that a consistent winning streak could be secured every day.
The profit would be $1 per contract, but each contract only cost’s $1. So, essentially I could double my money each day?
Has anyone ever tried this?
What could possibly go wrong?
The spy moves more than $20, in either direction, in a single day, and I lose 10,000%