The 11k to 40mm was also a fraud. She didn’t earn 40mm, she raised 40mm of assets.
advantage to selling options?
- Thread starter MK020
- Start date
The 11k to 40mm was also a fraud. She didn’t earn 40mm, she raised 40mm of assets.
Was a big fan of hers when I learned option trades from tastytrade. Recall she went from $11K to $40M trading options but no one mentioned raising $40M instead of making $40M. Too bad it wasn't true.
I still remember, bought books by the Beardstown ladies on how a bunch of 70 something ladies, without formal financial training, formed an investment club and able to make a CAGR of 23.4% returns in their spare time. That turned out to be false too.
Us amateur retails need some heroes and heroines as role models to give us some hope. I think I detected some here on ET but they are not shouting out and not writing any books.
you could sell puts if you like the name and buy calls. Free bet. Worse case scenario you buy the name you like at a better price.
It works and it doesn't work. A few years back, I liked the name (GE among others), bought the name I like (GE) at a better price. Owned it, finally dumped most at a big loss.
When the name I like drops, it should be a warning sign. Instead, I should reexamine the reason rather than celebrating.
My humble suggestion: Separate option trades and long term holds. They are two different animals.
I just read through this from my Sat morning report of popular new threads. Selling naked options is suicidal for all but the super rich. Selling options should be done in the form of a vertical spread which gives you a fixed maximum profit and a maximum potential loss. It can be a conservative directional play with limited funds on an expensive stock like Apple. If Apple is acting really bullish you can sell a weekly slightly OTM vertical Put spread and keep the money even if Apple drops to the strike that you sold.
Excellent perspective so far. IMHO, you can make a 10-15% selling options if you do it correctly. Beyond that, you are asking to be wiped out.
I wrote some pretty far out put spreads on AAL this past Wednesday as premiums were juicy. Got wiped out the following day as the crash it
P.S. you can make the same 10-15% buying options too.
I wrote some pretty far out put spreads on AAL this past Wednesday as premiums were juicy. Got wiped out the following day as the crash it
P.S. you can make the same 10-15% buying options too.
That is me for the last 20 years...
I have bought and sold (optioned away) ADM for the last 14+ years. 2006 the price was $41. Today it is at $39.43...Very boring you would think. In my two different Roth IRAs anything I earn is tax free. It has held it's dividend for about a gazillion years!! I do covered calls on this stock (my favorite hold). If it gets called away, I do not have to wait 31 days to buy again. Dividend is 3.73%...Not bad in this fed (free money) environment. Predetermined gain for the most part...Everybody eats!!
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No offense sir, selling naked puts also has limited loss: When the stock goes to zero. You get wipe out only if you are too greedy, selling more than you can afford.
I am sorry I tended to be on the negative side. This coming from a newbie option trader seemed uncharacteristic, but I lost lots of money trying out numerous "income streams, sure bets..." from books and from discussions on ET.
Profit is possible, after all I have being doing it full time for 7 years but you won't get it by blindly following some popular strategies. Edward Damming, the quality guru, used to tell us: There is no substitute for profound knowledge.
Best wishes to you.
Great post.
I bet one of your secret sources is you know ADM well. Keeping it and trading it's options over and over again for 14 years, you know it like you know your wife.
Thank you for sharing.
Regards,