I made something like $70,000 on longing SPY puts and calls in the last couple weeks. My maximum investment in any position was $109,000. I hold only one position at a time to retain focus in that position, although I sometimes overlap put and call positions when exiting a prior trade. Obviously, this rate of return is not sustainable and involves some luck, but I set stops and I don't alter them upon entering any trade. In other words my winning trades are allowed to run, and my losing trades are exited with as little emotional response as possible.
If you want to know if it's possible to do this for a living; then start doing it. I recommend using CBOE.com's virtual trading program. Set the amount of capital you want to start with, and just start going crazy with options. That's how I started with options, and I suggest a year of virtual trading, (at least one trade, every single day), before committing actual money. With CBOE's virtual trade you can long or short options, and experiment with any spread you can imagine. The important thing is making trades every day, and not getting discouraged when you get your butt handed to you.
When I had losing days or weeks I would get depressed, but I forced myself to make trades every day no matter what. Also, you need to keep a record of your reasons for every trade and refer back to it.
A lot of very successful traders have blown it, or choked, and you probably will to. (I know I have). In the end limit your losses, write down strategies, follow your strategies without emotion, and be extremely humble. I believe any trader should virtual trade as well, this will help you to learn.
If you are not fascinated with the market you will fail. When I go to Barnes and Noble, BKS, I look through investing books until my girlfriend makes me stop; she has no interest in any of this except for using the money to go to LULU. I don't want football, baseball, or any sport; this is my sport.
If you love trading you will find a way to succeed at it. Don't wonder whether or not you can succeed, find out for sure. Don't listen to anyones advice, or ridicule, but do listen to it. (it's contradictory, but true). Being able to trade is a privilege that should be respected.
If you really want to know how to trade I'll tell you every move I make. A lot of people on here will be critical of you, but if you ask them for their trades before hand they won't tell you. Many of them are yesterday traders, "I did this or that yesterday", but who cares what you did yesterday it's the far right edge of the chart that matters.
(There are better traders on here than me; I'm just here to learn, and improve). I do support myself this way though, and that was not an easy thing to accomplish. I started with $10,000 (of someone else's money), and just tried to grind out a few hundred a day. I did it but it got ugly for a while.
Something that helped me was to stop thinking of money as money. Money is units, or deviations it is not money. Options go up or down a certain number of "units". This is a study of human psychology, and it is not a way to get rich quick.
Everyone is welcome to insult anything I said; I enjoy criticism.
