U.S. President Trump finally couldn't sit still regarding the crash of U.S. stocks in recent days. At the beginning of Wednesday's session,He bluntly advised investors to buy U.S. stocks. And those investors who followed his advice did gain well on the day, because just hours after the "buy" call, he suspended some "reciprocal tariffs", triggering a strong market rebound。
Trump said during the session that he had authorized a 90-day tariff suspension for countries or regions that did not take retaliatory actions. The news triggered a strong rebound in U.S. stocks.
Theoretically, for those investors who entered the market immediately at Trump's urging, they got a handsome return. After Trump announced the suspension of some tariffs, U.S. stocks experienced a historic reversal in afternoon trading.
Take the SPDR S&P 500 Index ETF as an example. The ETF tracking the S&P 500 Index traded at $494.11 at the moment Trump called for a "buy", and rose to a maximum of $548.62 within the day, an increase of 11%. The ETF closed the day up 10.5%, its biggest one-day gain since 2008.
The share price of Trump Media and Technology Group traded at $16.69 at the moment Trump called for a "buy", and rose to a high of $20.40 within the day, an increase of about 22.2%. The stock closed up more than 21% that day, the biggest one-day gain this year.
Tesla-another stock deeply entangled with the Trump administration-also rebounded strongly on the day. As Tesla CEO Musk led the Department of Government Efficiency (DOGE) to cut federal spending, the car company has recently encountered strong resistance, and its stock price has been falling endlessly.
At the moment Trump called for a "buy", Tesla's stock price traded at $226.27, rising to a maximum of $274.69 within the day, an increase of 21.4%. The stock closed up more than 22% that day, the highest one-day gain since 2013.
On Wednesday, the S&P 500 index closed up 9.52% at 5,456.90 points, the biggest gain since October 29, 2008, and the third largest one-day gain since World War II.
Introduction to out-of-the-money options and doomsday games
In the stock market, option, as a derivative instrument, has attracted much attention because of its leverage effect and risk-return structure. "Doomsday out-of-the-money options" refer to those options that are far away from the current stock price and almost lose their intrinsic value. They are usually considered high-risk speculative tools. The so-called "doomsday" here not only means a desperate reversal and a sudden outbreak, but also implies that only when extreme events occur, such options will usher in huge returns.
The option pricing model tells us that when the underlying asset fluctuates violently, out-of-the-money options that usually seem insignificant may instantly increase in value due to soaring volatility. Investors use this kind of option to bet, which is not only a speculation on the extreme trend of the market, but also an investment strategy of making big with small. Although the risk is extremely high, this is why such options can bring more than expected returns once the market turns.
NVDA options doomsday gameplay
Take NVDA (Nvidia) 2025 0411 CALL as an example. The price of this option at the opening was $3.45, but after the market ushered in a strong rebound, its price soared to $14.35 in one fell swoop, achieving a 474% increase. Such an increase just confirms the high leverage characteristics of out-of-the-money options at the end of the day-in the context of extreme market volatility or policy stimulus, originally "marginal" options can be quickly transformed into attractive assets.
Against the background of Trump's announcement to suspend some tariffs and a sudden rebound in market confidence,$Nvidia (NVDA) $The fundamentals and market sentiment have ushered in a substantial improvement. For those investors who are eyeing extreme market conditions and are willing to take high risks, choosing doomsday out-of-the-money options similar to NVDA 2025 0411 CALL is undoubtedly a high-return but high-risk operation strategy. The case of this option shows that when the market encounters heavy policy stimulus, the originally undervalued out-of-the-money options will achieve an exponential jump in returns due to the dual effects of market sentiment and volatility.
Strategies for playing out-of-the-money options on doomsday
The double-edged sword of high risk and high rewardThe investment threshold of doomsday out-of-the-money options is low, but it is also accompanied by extremely high uncertainty. Investors need to fully realize that such options are only likely to break out when there are violent market fluctuations or extreme events; Otherwise, the passage of time will cause it to return to zero quickly.
Seize the window of policy and market sentimentAs Trump's "buy" call during the market downturn shows, policy intervention can often reverse market sentiment in a short time. Investors can pay attention to similar macro policy signals, major news releases, and changes in market sentiment, and lay out out-of-the-money options with undervalued potential value in advance.
Accurate position control and risk managementGiven the extreme volatility of doomsday out-of-the-money options, investors are advised not to bet their entire money on a single out-of-the-money option. Through diversified investment and strict position control, considerable returns can be obtained when extreme market conditions occur, while avoiding heavy losses due to the market's unexpected surge.
Flexible trading strategies and timely take profitWhen there is an explosive reversal in the market, it is particularly important to take profits in time. Taking NVDA as an example, it has soared from $3.45 to $14.35. If investors can decisively take profits at high levels, they will be able to maximize profits. Therefore, paying close attention to market dynamics and quickly adjusting position strategies according to market changes are the keys to successfully using doomsday out-of-the-money options.
Risk reminder
As with all high-return strategies, investors must exercise caution when deploying such options, control risks reasonably, and ensure that while pursuing huge returns, they will not suffer unbearable losses due to market fluctuations.
In short, although doomsday out-of-the-money options are extremely risky, it is these "desperate" moments that give birth to opportunities for investors to achieve explosive returns. Only by understanding its operating mechanism, grasping market policy signals, and cooperating with strict risk management can we be invincible in this high-risk and high-return game.
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