Quitting day job to collect weekly premiums - realistic?

[Sig]

All you technical trade nazies can read all the charts and spew off option greeks you want. There are traders out there that can recognize price/volume/time decay a lot quicker than you and taking your money. hahaha

You sound like Vizzini in the Princess Bride with that hahaha, right before he fell over dead from drinking the poison that he was sure wasn't poison because he was a Sicilian!

Highly recommend Fooled by Randomness for you, even though Taleb can be tedious with his rants.

 

[viruscore1]

"Where do they teach you to talk like this? In some Panama City "Sailor wanna hump-hump" bar, or is it getaway day and your last shot at his whiskey? Sell crazy someplace else, we're all stocked up here."

Jack Nicholson

FYI option greeks is just a label for math calcs and charts are just a graphical representation of price movement. I bet you already knew that ... hahaha
And you're spewing jack nicholson as an authority. You know he's a actor right? Someone who pretends to be someone else for a living...

 

[viruscore1]

"Where do they teach you to talk like this? In some Panama City "Sailor wanna hump-hump" bar, or is it getaway day and your last shot at his whiskey? Sell crazy someplace else, we're all stocked up here."

Jack Nicholson

I learnt to talk like this from amateurs traders like you in here. An authority on option greeks...lol

 

[drcha]

Good idea to first test your strategy through a bear market (and make sure you can identify a bear mkt in time).

 

[galvinlee888]

I know traders that don't know option greeks exist that earn over 10k a month. They don't read charts either.

Ok without knowing chart, but arrogant to ignore greeks

 

[newwurldmn]

I know traders that don't know option greeks exist that earn over 10k a month. They don't read charts either.

If they knew their risks quantitatively and qualitatively they might have earned over 20k a month.

 

[drcha]

BTW, I don't think there is a bear market equivalent. The volatility is always higher in a bear market, so you cannot just turn a strategy like this inside out by using puts or shorting things.

 

[Pekelo]

Building on this, what is the equivalent strategy in a total bear market for the above? I don't want to sell any call spreads.

Covered puts. If your view of the market is bearish, just short the index or major stocks and write puts on them. The upside movement is protected up to the premium, if no movement, you collect the premium. Sure, if the stock/market falls, your gain is limited, but hey, you are making money when most everyone is losing....

 

[Pekelo]

My suggestion is to buy your favourite stock on a day when the stock drops and vols spike. Sell long dated ATM straddles which translates into 40% returns for the year.

I highly doubt this. Would you mind giving us an example? Maybe up to 20%, but not 40....

 

[viruscore1]

If they knew their risks quantitatively and qualitatively they might have earned over 20k a month.

hidesight is 20/20 , can't be too greedy