It's much better to buy slightly OTM options than ATM ones?

[rew]

Quote from crgarcia:

All option sellers will blowup if they continue to do so for many years.

Sh*t happens, and the deep OTM they thought it would never get into the money, will.

The small premium received does not compensate the vast loss suffered.

Well, I regularly sell call or put spreads, but I have a strict stop loss policy. Also, since they're spreads, the worst case loss may be large but it's finite and known ahead of time. I generally do this on indices, not individual stocks. Major stock indices are less likely to have huge one day moves than individual stocks, so I'm not likely to get blown far past my stop.

The big guys who sell options by the tens of thousands hedge with futures or the underlying, and have rigorous risk mangagement. They rarely blow up.

 

[crash n burn]

Quote from crgarcia:

All option sellers will blowup if they continue to do so for many years.

Sh*t happens, and the deep OTM they thought it would never get into the money, will.

The small premium received does not compensate the vast loss suffered.

i am impressed with this dumb fuck

in one thread says will sell otm puts on the index

in another says all option sellers will blow up

what's next pin head?



it is quite evident you dont grasp the essential aspect of profitable trading.

all trading products are negative sum, either short or long, options or futures, etc.

the only way of achieving consistent profitability is through an edge, something that is far beyond your naive simplistic assertions.