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Road kill? Ok fair enough. I'm sure I will find an edge though. Somehow. I know enough to stay away from schemes. I'm not sure exactly what makes you think im gullible...young? yes. Im 20, but I've also started a successful company, and made some damn good money. More importantly I've lost...

wha??

Both replies make a lot of sense. What you're saying is to have an edge like the house does is in a casino. Sure the casino loses sometimes, but they always always make more b/c of their built in mathematical edge. I do understand that options are zero-sum. I guess the best thing to look for is...

I see. What's your edge? haha I bet you wont tell me. Can you give me an example of what someones edge might be like? Or is that too broad of a question.

I see what you mean, but if thats true then it would be impossible to make somewhat consistent profit doing...well just about anything. You cant really believe that can you? Otherwise what are we we even doing here? Might as well buy a lottery ticket.

I understand what you're saying, but if you hedge yourself so you dont necessarily make as much on the 90% that expire worthless, but you dont lose on the 10% that do end up in the money, wouldn't that work?

Do any of you guys trade options exclusively or almost exclusively for the brunt of your income? If you do what general strategies do you use most often? How much capital are your working with and what are your typical target returns?

Im a noob., but im VERY interested in writing out of the money options because dont the VAST majority of options expire worthless? Something like 85%? Seems like all that money has to go somewhere. As long as you hedge your self I think it can work. Im in the process of trying it with fake money.

I see. So its safe to assume if an option is in the money, it will be exercised. I got it.

When you sell an option who or what determines if/when that options gets exercised? I know of course you have to add the price paid for the option to the price of the underlying stock to determine if its profitable to exercise, but who determines when the options get exercised? Is it a case...

got it.

Why do some stocks have 2 option symbols at the same strike, ie QQQQ. Is this bc of sheer volume?

I wish I could go back and see what the bid was! I really wish I could get some of this terminology down. I've been doing this with paper money for a while. The same thing I explained in my first post. Of course usually the hedge/long position costs 50% more than I can sell the short one...

Could be for sure. Like I said, I didnt try to buy them so I cant say.

geeze...the other day....a few weeks ago, same difference. All I know is that the call expiring last month and the call expiring in Jan 09, we're very close in price. I dont know why, or how, but I can read. Maybe some idiot bought them at a really high price for no reason. Who knows. I didnt...

ha. I found one the other day. I thought i was missing something so I called optionsxpress and the the lady was like uhhhhh that looks pretty good....bc there was ACTUAL volume on the mispriced position. That was a few weeks back, but it was on MOT. What if you found such a case but it was at...

oh and what would this strategy be called?

Ok I just wanted to make sure that the main problem with the scenario is the misprice. I will tell you that they are out there. I've never found one that was trading at 100%, but ive found 3 or 4 that we're trading at 90%-95% despite being $1 further from the strike and a month closer to expy...

Be careful bro. I'm 20 and recently had the same type of setup. Only I made the money in real estate. If you havent already, hedge yourself in every way possible. You cant imagine the amount of things that can go wrong one after the other. Trust me. It sucks.

ha! ok ok i HAVE found one, but im not quite that naive.