Selling Options for passive income by Robert Kiyosaki

Didn't Robert Kiyosaki get rich waiting on the Court House steps to induce desperate people to Sell distressed Properties to him???

Wasn't Robert Kiyosaki predicting the collapse of the financial system a few years ago, and that he would be thrown in Jail for speaking out???



Passive Income. Just Position trade the SPX or NDX, keeping out of Corrections and Crashes.
 
andy_p said:
selling options and making passive income big style?
More...

Options writing isn't where you want to go if you want *income big style*.
Most option writers have a high win percentage but the wins are small relative to the losses.
You'll often see a long string of small wins then a large loss that wipes out many wins. (See graph below.)

The closer to the money you sell gives you more income but also increases the risk.
White River Group is a CTA that's been selling options for many years.
Looking at the results below it's easy to see you'd do better just buying the market & holding.
There are some option writers that are more consistent buy usually the wins are pretty small so they avoid the larger losses.
Selling spreads is safer but more commissions reduces performance and if you go closer to the money because of the loss protection it'll reduce your win rate so performance will be more volatile.

***Search "James Cordier natural gas" to see what can happen if you don't have a strict plan for bad trades.

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No such beast

andy_p said:
Hello,

Rober Kiyosaki says in his game that true passive income is done by selling options. My question is do you guys know any course that teaches you how to do that?
Can you please list on here 2-3 courses that are good for selling options and making passive income big style?
Thank you
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A to your point related fact is that in the otc markets facilitation desks run analytics of which counterparts they frequently lose money with and those are either discouraged to trade with the desk through inflated spreads or outright told that the relationship is over. Counterparts that bring in lots of pnl are "rewarded" by receiving end of year cases of champagne.



Sprout said:
I like Robert, but see him more as an educator and marketer.




Structuring spreads is margin efficient. One retains more buying power. While I've achieved early success with options, it was entirely my mentor's work for I had no idea wtf was going on as I was just an order taker for his option trades on my account.

Unfortunately he turned out to be a scammer as he baited and switched me.

But from what I could glean, one of the more reliable ways of making money and being profitable in options was having the other side of the trade where someone in a losing position HAD to do business with you.
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You mean buying the PAST market and holding. Chances are incredibly slim that equity markets manage to repeat the feast of the past 14 years.

BKR88 said:
Options writing isn't where you want to go if you want *income big style*.
Most option writers have a high win percentage but the wins are small relative to the losses.
You'll often see a long string of small wins then a large loss that wipes out many wins. (See graph below.)

The closer to the money you sell gives you more income but also increases the risk.
White River Group is a CTA that's been selling options for many years.
Looking at the results below it's easy to see you'd do better just buying the market & holding.
There are some option writers that are more consistent buy usually the wins are pretty small so they avoid the larger losses.
Selling spreads is safer but more commissions reduces performance and if you go closer to the money because of the loss protection it'll reduce your win rate so performance will be more volatile.

***Search "James Cordier natural gas" to see what can happen if you don't have a strict plan for bad trades.

View attachment 327283 View attachment 327284
More...
 
If you could trade options 24/7 selling wouldn't be as bad...but for equities at least when the underlying gaps against you overnight or weekend while you're short convexity...

Any of you primarily trade options on futures for the above reason?
 
BKR88 said:
Options writing isn't where you want to go if you want *income big style*.
Most option writers have a high win percentage but the wins are small relative to the losses.
You'll often see a long string of small wins then a large loss that wipes out many wins. (See graph below.)

The closer to the money you sell gives you more income but also increases the risk.
White River Group is a CTA that's been selling options for many years.
Looking at the results below it's easy to see you'd do better just buying the market & holding.
There are some option writers that are more consistent buy usually the wins are pretty small so they avoid the larger losses.
Selling spreads is safer but more commissions reduces performance and if you go closer to the money because of the loss protection it'll reduce your win rate so performance will be more volatile.

***Search "James Cordier natural gas" to see what can happen if you don't have a strict plan for bad trades.

View attachment 327283 View attachment 327284
More...

The market can go down eg2022. When the option seller could have been trend following selling calls.
 
M.W. said:
You mean buying the PAST market and holding. Chances are incredibly slim that equity markets manage to repeat the feast of the past 14 years.
More...

Agree.
If he wants to make *income big style* he'd probably be better off BUYING puts/calls over the next 10 years rather than buying & holding the market OR selling options. Could be wrong though as equity markets can moon if the fiat currency devaluation accelerates.
 
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