Never got sold on options selling because you are trying to make a $100 while, risking $1,000. I would rather risk $200-$300 to make $1,000 buying calls and puts. Winning rate could be high but, the time you lose, you lose pretty large. Not the risk to reward I would want. Better to buy a dividend stock. Some pay 3-4% per year but, you are 100% invested and if your stock tanks, you could lose way more than that 3-4% in dividends. That is why people trade and try and time the stockmarket.
Selling Options for passive income by Robert Kiyosaki
- Thread starter andy_p
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You may want to read this:
https://www.elitetrader.com/et/thre...ks-grave-error-former-aqr-quant-warns.376925/
... and any book by Nassim Nicholas Taleb.
https://www.elitetrader.com/et/thre...ks-grave-error-former-aqr-quant-warns.376925/
... and any book by Nassim Nicholas Taleb.
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Like selling insurance they said, most insurance companies print money and 90% of options expire worthless. The 10 % were killers. You didn't hear the term picking up pennies in front of a steamroller or playing Russian roulette?
Don't do it. This amateur retail learned a hard lesson back in 2013-14, thought writing options was free money. Literarily wrote hundreds. Fortunately I wrote covered calls, many of my best stocks were called away. Later, to avoid been called, I had to buy back those options at a big loss. Some said you could roll or "wheel". I tried, still couldn't avoid a lost.
Can you make it? Yes, I survive trading options full time for a decade since but it is not a walk in the park.
Listen to the others. If you still want to do it, then buy and read those books they recommended, don't pay for any expensive courses or buying into any systems. Many scammers are lurking.
You can earn some income from selling options but only through selling option spreads and just like everyone has been saying, never through selling naked options. And even when selling option spreads, you might not be earning a consistent income. You might be making losses larger than the "income" that you have earned. You have been warned.
And you don't need to take any courses, just go to investopedia.com and search for "option spreads" and you will learn everything that you need to earn "income" through selling option spreads.
Good luck! You will need it.
The financial markets are a rich persons psychological game, something everyone misses, who generate passive returns from excess capital, yes you can also actively trade the markets but there are some very specific numbers, if you go above these you will fail.
The entire ecosystem of the financial markets is fed by the losses of the 99.36% of participants doing everything else, option spreads are no different from any other strategy, you need to be inside the top 1% and here's the funny part, anything that could work is discounted to zero by the other 99%.
Meaning you're on your own
robert kyosaki makes his money selling poorly written books. Ignore him.
selling options isn’t a form of income. It’s a form of speculation. That doesn’t mean it can’t be profitable.
If you really think selling option spreads is far superior to selling naked options, then you may have discovered a new "arb",much like a B-fly,but not a B-fly 
And for all you newbies out there,do yourself a favor and stop listening to various scammers and get a program like Orats and backtest your "beliefs"... Nothing ventured,nothing gained
And for all you newbies out there,do yourself a favor and stop listening to various scammers and get a program like Orats and backtest your "beliefs"... Nothing ventured,nothing gained
This event happened in real life to 3 nurses working at the same hospital in the US. Actually, the tale came from a friend of mine, who was a doctor in the same hospital. If you have the patience of Job, you may be able to copy their simple strategy. Remember the 2008 meltdown? Bank stocks got hammered pretty badly. So, BAC (Bank of America) stock got hammered down to $5 per share. These 3 nurses bought 3 months salaries of BAC (Bank of America) at about $5 each. The rest of course is history. They made out like bandits. I do not know if they sold all their shares or a portion of their shares by now. Still, that is a 400% return BAC (Bank of America) closed around $27 this Friday, November 10, 2023. If we have another huge bear market, you know there will be opportunities like this one.
Exactly my thoughts. He's a great businessman and marketer. But any trading advice coming from him should be ignored.
Option spreads suffer from infinite gamma.
If you really think selling option spreads is far superior to selling naked options, then you may have discovered a new "arb",much like a B-fly,but not a B-fly
And for all you newbies out there,do yourself a favor and stop listening to various scammers and get a program like Orats and backtest your "beliefs"... Nothing ventured,nothing gained