Investing in the ONE sure thing.

[ZF Lee]

For the uneducated, risk adverse folks out there...yeah, options are not a good vehicle for wealth generation.

The keywords are 'uneducated' and 'risk adverse'.

Both can be overcome so at the end of the day, it's no biggie to me.

Yes, it's all about perspective. I don't look at option selling as an investment, I look at it like a business, much the same as selling insurance. There will be times when you will have claims. As you say, a cost of doing business. Likewise, the real estate business also has claims: Broken A/C unit, new roof, deadbeat tenants, etc.

Bingo.

 

[100k]

I'm planning on buying 12-24 month LEAPS and selling poor man's covered calls using the LEAPS as collateral. First time trading options. I did buy some $AMC & $GME shares, but sadly I had to sell those shares as I needed to get hold of cash, I otherwise I'd be hodling them and collecting those sweet sweet premiums.

I'm joining #ThetaGang

 

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[Ywan]

Sorry I skipped your question... I think you can start with $5000 as long as you find a brokerage that allows short option sales, like TastyWorks or TastyTrade. BTW, the 2 aforementioned resources provide a lot of education on mostly selling strategies. Though with only $5K, you will be very limited in your activities.

Great, I am eager to learn this. Just so I don't have false expectations: how long do you think it will take to master this skill?

 

[Taktik]

Sorry I skipped your question... I think you can start with $5000 as long as you find a brokerage that allows short option sales, like TastyWorks or TastyTrade. BTW, the 2 aforementioned resources provide a lot of education on mostly selling strategies. Though with only $5K, you will be very limited in your activities.

Does anyone happen to know if TastyWorks or TastyTrade are also approved in the EU? If not, can anyone recommend a good alternative for Europeans?
I appreciate it. Thanks.

 

[Matt Sun]

Read everything. If you are good at following directions, then thinking creatively and problem solving, you will pick it up quickly.

You also need to be somewhat cautious if you want to do well. Otherwise you’ll blow up your account gambling on the WSB flavor of the week...

I learned it here from MJ and have been beating the market by a few percentage points YTD, made about $7k profit so far (started last year but 7k is profit for 2021).

The hard part is finding the right stocks. I do a lot of stock screening and reading reports and ratings. Companies with low debt, high Return on Equity, and a good balance of other fundamentals - that I have actually heard of before - have done well.

You mind telling how much money you used to earn 7k this year so far?

 

[Taktik]

I trade on TastyWorks from France.

Great. Then I will use it too.
What about taxes? Any problems with european legislation?

 

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[e_fastlane]

Yes, just to be clear for other bystanders, when I say sell options, I don't mean sell options totally unprotected. I also don't mean sell options on any random company. There are specific underlyings that work, and others that should be avoided.

The only question that rings in my head is the idea of "What do you know that companies that spend 24/7 doing this don't know". If there are major players in the game, the price/earning you get is likely about right for the risk you are taking. While not perfect, "the market" usually does a relatively good job of pricing risk/reward correctly over the long term. If you have some INSIDERS knowledge, now that is gold. Otherwise, my question stands. Any "method" that works would be beat to death by billion dollar funds almost immediately. I recognize the efficient market hypothesis has flaws and that's not exactly what I am talking about. After all, I am acknowledging maybe you know something they don't. Do you think they will eventually catch on and you will have to change strategies then?

The problem with using profits made in the last 10-15 years as evidence of anything is that everyone is a genius and winner in the bull market. The shoe shiner can also give you reliable stock tips that make you a great return. Simply because almost all of them do! I too have made great gains in everything I have invested.... But again, it was because a rising tide lifts all boats. Fundamentally bad bets could actually be rewarded even more during periods when the market is mostly the same direction.

I don't know exactly what you are doing, so this isn't a judgment on your method at all. I'm just trying to figure out in broad strokes what makes your method special. I know options/futures/etc can theoretically bring a small premium VS just the standard market since they are vehicles designed to also provide someone a service. But I think with the amount of institutional activity, it's pretty minimal and usually also reflected as risk.

As a side note, if I remember correct, Nassim Taleb also suggests Options are the best way to try and beat the market. But I believe he was advocating for buying, not selling. I can't remember for sure.

 

[Akshay Kumar]

It has even been MORE VIABLE in the last 2 years because

A) Option prices have skyrocketed, hence premium selling is more rich.

and

B) The market continues to rise.



I own several million (notional value) of real estate LEAPS -- not for an investment, merely an insurance policy/hedge against inflation and/or currency destabilization. Not sure if I will be happy making money on them which means the former premises will be coming to pass...

Would the strategies in the options INSIDERS thread work in Indian markets if I can't access tastyworks here and am forced to use an Indian broker?

 

[Akshay Kumar]

I'm not sure. If you don't have access to a highly liquid options market, the strategy is essentially moot.

As far as I can remember, most of the stocks are not very liquid here but the Indices and the top 10-15 stocks are highly liquid. Would that work?

And if the broker doesn't have as many features as Tastytrade(like IV Rank, IV Percentile etc.), would I face any problem or are basic features enough?

 

[JeroenV08]

Put These Charts on Your Wall…

Hi everyone,

Does anyone still have this working link?
For me it shows that this link is no longer working....

Thanks in advance

 

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[Mathuin]

Hi everyone,

Does anyone still have this working link?
For me it shows that this link is no longer working....

Thanks in advance

It hasn't been working for quite some time. But there are similar links that basically say the same overall message.

Put These Charts on Your Wall ... 2020 Edition

Put these charts on your wall for reference the next time you think… Stocks can’t go up during a recession… It’s “oversold” or “at support” and has to bounce… It’s “overbought” or “at resistance” and can‘t possibly go higher… Investors are rational and would never pay $239.50 for something worth...

compoundadvisors.com

https://seekingalpha.com/article/4102909-put-charts-on-your-wall