Question to options traders

[Amahrix]

those firms you are talking about made all their money off commissions

option buyers are lotto ticket buyers and option sellers are lotto pool operators

Long tail options are not comparable to lotto tickets. Lottery tickets have 1) known odds 2) known payoffs; long options & naked options do not possess these two characteristics... this is non-comparable.

Lottery-ticket fallacy: the naive analogy equating an investment in collecting positive black swans to the accumulation of lottery tickets. Lottery tickets are not scalable.

Makes sense? The two are NON COMPARABLE, they possess different characteristics & properties.

 

[Amahrix]

billionaires everywhere get up each morning and sell options expecting to never lose

You don't hear about the losers in option selling business... survivorship bias.

 

[Wheezooo]

The fools are tail risk sellers, Mark Brown does not understand options.

You are wasting your time even replying to him. The dudes everything I would warn people against.

 

[Amahrix]

You are wasting your time even replying to him. The dudes everything I would warn people against.

Attempting to protect those who pass by. Convincing him isn’t the goal. I feel rude and guilty talking and calling out but I must because his advice has major consequences to those who listen to it.

 

[ironchef]

Attempting to protect those who pass by. Convincing him isn’t the goal. I feel rude and guilty talking and calling out but I must because his advice has major consequences to those who listen to it.

Thank you for caring about us newbies.

 

[ironchef]

You are wasting your time even replying to him. The dudes everything I would warn people against.

He said he used to make millions trading. Like many posters here, some of his posts made sense but some didn't.

 

[Baozi]

I would say there is nothing inherently bad in selling premium, however one must first know the associated risks.. on top of that, I'd rather short a straddle or a narrow strangle rather than the far away wings

 

[ironchef]

I would say there is nothing inherently bad in selling premium, however one must first know the associated risks.. on top of that, I'd rather short a straddle or a narrow strangle rather than the far away wings

Why?

 

[MarkBrown]

Why?

if you sell prem like a pro you'd know. but since other novices rather bad mouth what you don't understand, i will waste my time and state - it has to do with the premium.

amateurs who drive go karts would suggest to indy racers to use regular unleaded gas rather than expensive racing fuel because it's dangerous.

if you didn't understand that - how about if your going to be a robber why rob a kid's lemonade stand.

if you're going to sell options might as well make the big bucks and sell them close where you collect the most premium.

 

[destriero]

Attempting to protect those who pass by. Convincing him isn’t the goal. I feel rude and guilty talking and calling out but I must because his advice has major consequences to those who listen to it.

The dude is broke and living on his wife's SS. Please don't feed the trolls.