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Stocks drop 10, 20, 30 percent in a day all the time.

Sorry, I meant deep out of the money.

These things will blow right through your stops regularly. On a day like October 1987, you'll lose even more than the margin. You must limit your losses. Don't be a pig. Give up 10% of your profits to buy a DITM wing.

That's crazy (I assume you agree and are saying this tongue-in-cheek). But for those who take your statement seriously: this is a technique to be used with a small fraction of one's portfolio.

I don't know about 22% a quarter. However, I would guess you could probably make half of that, on average, selling puts or put spreads on indexes if you have a reliable technical way to determine when to go to cash in bear markets. It would not be steady income. You would have some pretty ugly...

The expected value of most options trades is approximately zero. I would expect that over the long term, the trader who cannot predict anything would make zero. You need to be able to make enough accurate guesses about direction or volatility. You cannot just blindly put on trades and wait...

There is a wonderful series by Ploutos on Seeking Alpha called Five Simple Ways to Beat the Market. His suggests are indeed extremely simple. One could also look at a very simple momentum system, such as that proposed by Faber in The Ivy Portfolio (he does not claim to beat the market, only to...

There will be golden years elsewhere on this globe. One just has to figure out where, and when.

The discussion is not about whether there will ever really be negative rates, but only illustrates (for the market) that the Fed does not consider them an impossibility. On the first day of testimony, she made the statement quoted above by ktm. However, on the second day (today), her language...

My Treasuries look nice today. Go, Janet!

This is why I never invest in these types of stocks. They are only good for short-term trades. I look like a fool at every cocktail party. People yawn when they hear about my blue-chip dividend payers. Old school companies for an old lady. However, I get the last laugh.

Exactly.

We would be better off trying to do something productive for the underclass, rather than ignoring them or throwing money at them. How about if we try to help people move up via education? The Germans have educated everyone in the country, and become a nation of technologically advanced people...

At least two-thirds of suicides occur in people with major depression--in fact, some experts contend that all suicide is related to depression. Why do some people develop depression over and over, while others with similar life circumstances and experiences never do? Like everything else, the...

Nobody normal wants to watch 4 hours of drama about some financial person that nearly everyone hates. Maybe we on ET do, but no one else does. So I figure that is why they made the series a little campy, to keep it entertaining. Plus, that is the sort of genre in which Dreyfuss shines. I'm...

Is the Big Short doing any better after being out for a while? I liked it. But what surprises me is that absolutely everyone I talk to in my age group (I'm 59) wants to see it, including people who know zip about the equity or bond markets and have no interest in anything of the kind.

Well, only for now...they may RICO it away from him.

Who cares? How other people make money has nothing to do with how you do it. If you think you are average, you should not be trading....of course, nobody thinks they are average.

You are right to paper trade them and watch how they move around, both near to and remote from expiration. You can look at all the graphs you want but to fully educate yourself, there is nothing like writing it on the spreadsheet and watching what it does.

It is not willpower but confidence that is needed. Willpower implies you are consciously working against your own natural instincts to do something that you think is best for you. However, when you are confident in your system, and you are exercising proper money management skills, you do not...