Can't understand why I shouldn't buy such types of contracts, let's say I buy just 1 contract per week which cost 0,25€ two weeks out.
I'm investing 100€/month in lottery tickets that's for sure but there's good news. A 3% SPY movement is pretty common in two weeks, even if a choppy market occurs and I won't be destroyed by theta for sure.
No stop loss but a take profit at 400% the price of the contract should do the trick.
I had a bit of backtesting and the results are there but I'm not great at it so I'd like to hear your honest take.