>> âºâº $1MM liquid -- how difficult to achieve 15% annual ROI with option writing? >>
You're asking this on the internet where there is some truth and a whole lotta perfect traders and soon to be Warren Buffets?
Sarcasm aside, it's not a question of how difficult this is to accomplish but whether you can do it. We all have different skills, different risk tolerance, etc. Let's suppose that due to my analysis skills, I am very successful at trading long calls (I'm not) and that I average 20% from them. Does that mean that you will be able to achieve the same?
So my two cents would be to keep reading and find what area of options interests you. Start slowly. Consider lower risk strategies that won't detonate your account if the market or your underlyings zoom/crash. At the onset, determine a draw down amount that you are willing to expend for your tuition. Hypothetically, say $25,000. Once you lose that, accept it that options are not for you.
OTOH, if you achieve gains, increase your size gradually but never put yourself in a position of high risk. Retirement is good and I'd shudder at the thought of having to go back to the grind.
As someone else suggested, don't put yourself into anything that could take a deep bite into your savings.
You're asking this on the internet where there is some truth and a whole lotta perfect traders and soon to be Warren Buffets?
Sarcasm aside, it's not a question of how difficult this is to accomplish but whether you can do it. We all have different skills, different risk tolerance, etc. Let's suppose that due to my analysis skills, I am very successful at trading long calls (I'm not) and that I average 20% from them. Does that mean that you will be able to achieve the same?
So my two cents would be to keep reading and find what area of options interests you. Start slowly. Consider lower risk strategies that won't detonate your account if the market or your underlyings zoom/crash. At the onset, determine a draw down amount that you are willing to expend for your tuition. Hypothetically, say $25,000. Once you lose that, accept it that options are not for you.
OTOH, if you achieve gains, increase your size gradually but never put yourself in a position of high risk. Retirement is good and I'd shudder at the thought of having to go back to the grind.
As someone else suggested, don't put yourself into anything that could take a deep bite into your savings.
