SOXL has high option premium but carries huge downside risk and limited profit potential for current trades.

OMDS SO XL. Um SO XL. Let's look at that. Let's let's look at SO XL because there's tons of premium in that. And so and so this is a SO XL is a directional uh semiconductor play and can go absolutely parabolic and can go down like went to $7.

I like I've played this a few times. It you know from $60 to 7 it can move quite a bit.

Here we are where at at uh the 100 shares is worth $10,000. Well, it was worth $30,000 at its peak. So, if somebody bought here $30,000 worth of stock, they've lost twothirds of their money on this on this drop. This could continue down.

First of all, there's tons of premium in this. This is 97 bucks. Um I 4% premium. We're talking about like how how we can make money uh on on massive premium. This makes 4% in 10 days.

Um but there's huge risk to it. This is a $9,700 position and this could easily go down. If you look at this max loss 9200, max profit 445. So although it's a very good return and very high probability of profit, it's a it's a high-risisk trade.

Do I think that so XL is going to have a massive turnaround tomorrow? If I do, then I don't want to play this butterfly because it doesn't really make any money. This makes 24 bucks if the stock goes up. That's not what I want to do.