5 of the Biggest-Baller Options Trades Ever! (2024)

Options trading can be a lucrative business for those who know how to play the game. From front-running market news to capitalizing on Black Swan events, traders have made millions by betting on the right options at the right time. For the uninitiated, there are 2 basic flavours of options — a call and a put — you’d buy the former if you thought the price was going up, and the latter if you expected the price to drop.

In this article, we’re going to explore five extraordinary options trades that made it big, generating huge profits for traders who knew how to read the market signals.

Algo front runs market news

In March 2015, an unidentified trader made a profit of over $2.4 million in just 28 minutes by buying $110,000 worth of calls on Altera stock.

It all started with a news release saying that Intel was in talks to buy Altera.

Literally, seconds later, a trader bought 3,158 out-of-the-money call options with a strike price of $36 for $0.35 per contract — which ended up being worth $7.60 less than 30 minutes after placing the trade.

It’s likely that the clever trader had an algorithm which picked up and analysed the news. Although we think it might have beenBiff with his almanack.

Universa Longs the Vix with SPY Puts

“Black Swan” hedge fund Universa made a $1 billion profit buying SPY (S&P500 index) Puts onAugust 24th, 2015— right as the market flash crashed, down around 20%, and the volatility index, VIX, soared about 50%. Talk about great timing.

Paul Tudor Jones and the overpriced SPY

On October 19, 1987 —Black Monday— the market absolutely collapsed, but this was great news for trader Paul Tudor Jones, who made a whopping $100 million profit.

Jones had been buying SPY (S&P500) Puts after realising that the stock valuations were way overpriced, especially considering the 10% interest rate at the time.

But of course, these were absolutely nothing like the market conditions we’re seeing ourselves in today, with raging inflation, a frothy market and massive rate hikes right?

50 Cent’s VIX accumulation

Between 2018 and 2020, an anonymous trader by the name of 50 Cent was buying up massive tranches of the VIX volatility index — Around $800M worth in fact.

Along with $1.3B in Corporate Puts, $350M in SPY & Euro Stoxx Puts and $145M in Gold hedges, 50 Cent was certainly bearish, and it paid off big time when one recent event shook the world: Covid.

When Covid walloped the world in 2020, the markets instantly collapsed. Whilst longs were left totally underwater, 50 Cent had just bagged a tidy $2.6B profit.

Now what’s even more interesting is that in February of this year,50 Cent bought another ton of VIX calls, betting that it would spike to the 50-level by the end of May.

Big Baller Bitcoin Bet

On 30 October 2020, an unknown trader bought 16,000 Bitcoin call options on Deribit with an expiry of January 29, 2021, and a $36,000 strike price.

The initial investment was 48 BTC, or $638,400, at the entry price of around $13,700. And it ran, and ran and ran, and our anon trader netted a gain of 1,648 BTC, or $58.2 million — a whopping 9,118% return on investment which outperformed some of the best currency market bets ever made.

Careful though — options aren’t for everyone

All of these are obviously phenomenal trades which paid off well for those involved.

Whilst options desks are a great way to go if you fancy yourself as a budding Michael Burry, a word of warning — most retail options traders lose money, but there are plenty of institutions which are very good at making huge profits selling options contracts.

That’s mostly because it’s complicated to play options — really complicated, and as such, they’re not generally recommended for new traders.

Options alternatives for retail crypto holders

The crypto world sometimes has some pretty extreme volatility, and the sort of 10% moves which are rare and devastating in traditional financial markets, are commonplace in crypto.

And when we’re talking about Bitcoin prices in the many thousands of dollars, volatile down-days can be devastating to your wallet and your mood.

Many enthusiasts want a way to hedge against downside movements and offset their risk, but find the complexity and sometimes high barriers to entry of options desks offputting (if they even know about them).

And sure, there’s using a stop loss, but they don’t always work as intended, and once triggered, you lose your exposure to upside gains, so whilst useful, they don’t always work out in your favour.

Fortunately, this is why we built Bumper, an altogether new and novel way for crypto users to hedge risk. Basically, Bumper prevents the value of your protected tokens from sinking below a certain point, but you still get to enjoy the upside gains if the market pumps.

Bumper redefines risk markets, making them easier and more accessible for all crypto holders and makes it super simple. Just pick a floor and a term length, and boom, you’re protected from any further losses below that floor. No need to learn the “Greeks” or have a PhD in technical analysis; just a few clicks and you get the peace of mind you’ve been looking for, knowing that whatever happens, your crypto is safe.

Disclaimer: Any information provided on this website/publication is for general information purposes only, and does not constitute investment advice, financial advice, trading advice, recommendations, or any form of solicitation. No reliance can be placed on any information, content, or material stated on this website/publication. Accordingly, you must verify all information independently before utilising the Bumper protocol, and all decisions based on any information are your sole responsibility, and we shall have no liability for such decisions. Conduct your own due diligence and consult your financial advisor before making any investment decisions. Visit our website for fullterms and conditions.

5 of the Biggest-Baller Options Trades Ever! (2024)


5 of the Biggest-Baller Options Trades Ever!? ›

The echelon of best options trading experts includes legends like George Soros, who is famous for his trade against the British pound, and Paul Tudor Jones, who is known for significant gains during market crashes.

Who is the greatest options trader of all time? ›

The echelon of best options trading experts includes legends like George Soros, who is famous for his trade against the British pound, and Paul Tudor Jones, who is known for significant gains during market crashes.

What is the biggest profit in options trading? ›

Ans: The most profitable options strategy is to sell out-of-the-money put and call options. This trading strategy allows you to accumulate large amounts of option premiums while reducing risk. Traders who execute this strategy can earn returns of around 40% per year.

Who is the greatest trader in history? ›

Top 10 Greatest Traders of All Time
  1. George Soros. George Soros, aka "the man who broke the Bank of England," was born a Jew in Hungary in 1930, survived the Holocaust, and fled the country then. ...
  2. Jesse Livermore. ...
  3. William Delbert Gann. ...
  4. Paul Tudor Jones. ...
  5. Jim Rogers. ...
  6. Richard Dennis. ...
  7. John Paulson. ...
  8. Steven Cohen.
Apr 25, 2024

What is the most traded options? ›

SymbolPriceOptions Volume
45 more rows

Does Warren Buffett trade in options? ›

One of Warren Buffett's favorite trading tactics is selling put options. He loves to find assets that he thinks are undervalued and agrees to own them at even lower prices. In the interim, he collects option premium today which should the asset go lower in price it also helps reduce his cost basis.

Who is the father of option trading? ›

... There are many models in the option pricing literature but many of them do not match with the real-world situation. The very first model goes to Louis Bachelier (Sullivan and Weithers [10] ), who introduced the Brownian motion and used it to model the stock price in 1900.

Can you become a millionaire trading options? ›

Can you get rich trading options? The short answer is yes. However, options are more involved than stocks. As a result, you have to put in time to develop a winning strategy.

How did one trader make $2.4 million in 28 minutes? ›

When the stock reopened at around 3:40, the shares had jumped 28%. The stock closed at nearly $44.50. That meant the options that had been bought for $0.35 were now worth nearly $8.50, or collectively just over $2.4 million more that they were 28 minutes before. Options traders say they see shady trades all the time.

Can you become a millionaire from stock options? ›

In the past 30 years, technology startups have created tens of thousands of millionaires in Silicon Valley, largely from stock options.

Who are the Big 4 traders? ›

The big four brokerage firms in the U.S. are Charles Schwab, Fidelity Investments, E*TRADE, and Vanguard. That's based on the sizes of their customer numbers and assets under management (AUM).

Who is the most profitable day trader ever? ›

Steve Cohen is arguably the most profitable hedge fund trader ever. His SAC Capital returned 30% annually for more than 20 years since its inception in 1992, making Cohen a billionaire.

How much money do day traders with $10,000 accounts make per day on average? ›

With a $10,000 account, a good day might bring in a five percent gain, which is $500. However, day traders also need to consider fixed costs such as commissions charged by brokers. These commissions can eat into profits, and day traders need to earn enough to overcome these fees [2].

What is the safest option trade? ›

What is safest option strategy? The safest option strategy is one that involves limited risk, such as buying protective puts or employing conservative covered call writing.

What is the riskiest option strategy? ›

Selling call options on a stock that is not owned is the riskiest option strategy. This is also known as writing a naked call and selling an uncovered call.

Can you do options with $100? ›

If you're looking to get started, you could start trading options with just a few hundred dollars. However, if you make a wrong bet, you could lose your whole investment in weeks or months. A safer strategy is to become a long-term buy-and-hold investor and grow your wealth over time.

Who is the best option trader in the US? ›

Comparing the Best Options Trading Platforms
BrokerOverall Star RatingPer Contract Options
Interactive Brokers4.2 4.2 4.2$0.65
E*TRADE4.1 4.1 4.1$0.50 to $0.65
tastyworks3.9 3.9 3.9$1.00/Open Only
Webull3.0 3.0 3.0$0.00

Who is the number one trader? ›

Top 10 Traders In India 2024:-
RankTrader Name
1Premji and Associates
2Radhakrishnan Damani
3Rakesh Jhunjhunwala
4Raamdeo Agrawal
6 more rows
Apr 30, 2024

How much do top options traders make? ›

Options Trader Salary in New York City, NY
Annual SalaryWeekly Pay
Top Earners$207,866$3,997
75th Percentile$191,500$3,682
25th Percentile$53,600$1,030

Who is the best swing trader of all time? ›

Mark Minervini is a world-renowned stock trader who is famous for his impressive returns and uncanny ability to identify winning stocks. He strongly advocates swing trading, a strategy that involves holding stocks for a few days or weeks and taking advantage of short-term price movements.


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