Selling Options for passive income by Robert Kiyosaki

[ironchef]

Losses are inevitable. The best financial minds, traders all lose money. Even @taowave himself has admitted he's lost money (sincerely hope he doesn't anymore). No matter how good you are, you are going to lose money in trading. That's just the nature of the business. The goal in trading is not to never lose money; it's to make money and make more than you lose. As long as you can make more than you lose, you are good. Don't listen to people bragging about their yachts, watches or whatever. They could all be fake. I never pay attention to people's material wealth or their "supposed" material wealth. I look at their trading strategy. If their strategy makes sense then they might be good. If their strategy is garbage, then their "supposed" material wealth is all fake or as my nephew would say, "trash". LOL

Never focus on what they have. Focus on what they do. That's my motto. Cuz if what they do doesn't make sense, everything that they have is fake or can be all gone one day, sometimes sooner than you think.

Thanks. A good approach in life.

 

[zghorner]

My friends buy lottery tickets, I buy options, single legs, no spreads.

Better than selling IMO bit still so so difficult to make work long term. Not only do you need direction in your favor...but you also have to predict volatility...fuck man. Oh yea, And clocks tickin dude...one more element of difficulty.

So much respect for options traders making money as it just seems like the most difficult trading to learn and execute.

 

[taowave]

Many of you should ask yourselves why are you selling an option or a spread,and why on over the other...

I haven't heard one person mention gamma, delta, theta,nor anyone mention how many spreads one would have to sell for an equivalent theta position as a naked option..

There's no free lunch,and what all you guys are glossing over is delta hedging and hopefully capturing theoretical edge

 

[TheDawn]

My my, THREE replies to two of my posts. This is a record!! I need to take a screenshot. LOL

And here I was thinking there was hope for you.......

You had hope for me?? I didn't know that... LOL

Even Taowave??

I appreciate the praise,

Yes you are my guru.

but I have been very fortunate my wopper losses were done working at banks,and not on my dime..

Everyone loses,the question is how big

As I said,

The goal in trading is not to never lose money; it's to make money and make more than you lose. As long as you can make more than you lose, you are good.

And hence I suggest trading with option spreads instead of selling naked options.

Are you saying that shorting straddles is an inferior strategy to iron condors?

If you can lose more from shorting straddles which is really TWO sales of naked options than iron condors, then yes shorting straddles is an inferior strategy than iron condors. Glad you mentioned that not all option spreads are created equal.

And what exactly does a "higher chance of success yield"?

Are you talking strictly win rate?

Yes

As a trader,your job isnt,or shouldnt be to maximise the "likelyhood" of success.

Why not?? It shouldn't be the ONLY job or goal of a trader but maximizing win rate can still be nice as long as it contributes positively to your bottom line. As I said,

As long as you can make more than you lose, you are good.

No,programs like Orats wont confirm your "belief"

No programs like Orats are designed for you to maximize your win rate AND the profit that you make at each win. Ok now I want a bigger cut.

Most of the replys are a VERY simplistic view of option trading,

I seem to recall somebody who used to say to me:

YIKES....You love to complicate shit..Keep it simple...

I am now following your advice to keep things simple and this is what I get now. There is no way to please my guru...

 

[TheDawn]

I haven't heard one person mention gamma, delta, theta,nor anyone mention how many spreads one would have to sell for an equivalent theta position as a naked option..

Well last time when I mentioned gamma, we all know what happened. LOL But seriously, how do we calculate how many spreads one would have to sell for an equivalent theta position as a naked option? Can you illustrate with an example? I am really curious to know. And what kind of spreads are we comparing to which naked options? Because there are many many many kinds of option spreads combinations.

There's no free lunch,

Exactly!! That's why one needs to be extremely cautious when selling naked options.

and what all you guys are glossing over is delta hedging and hopefully capturing theoretical edge

theoretical edge? How is it theoretical? How would you confirm it in a practical sense? Great time to illustrate with ORATS. Still waiting for my cut.

 

[taowave]

Your batting .500 at best..
Not a bad win rate

My my, THREE replies to two of my posts. This is a record!! I need to take a screenshot. LOL



You had hope for me?? I didn't know that... LOL



Yes you are my guru.



As I said, And hence I suggest trading with option spreads instead of selling naked options.



If you can lose more from shorting straddles which is really TWO sales of naked options than iron condors, then yes shorting straddles is an inferior strategy than iron condors. Glad you mentioned that not all option spreads are created equal.

Yes

Why not?? It shouldn't be the ONLY job or goal of a trader but maximizing win rate can still be nice as long as it contributes positively to your bottom line. As I said,



No programs like Orats are designed for you to maximize your win rate AND the profit that you make at each win. Ok now I want a bigger cut.



I seem to recall somebody who used to say to me: I am now following your advice to keep things simple and this is what I get now. There is no way to please my guru...

 

[TheDawn]

Your batting .500 at best..
Not a bad win rate

Ok LOL

 

[Marcfal]

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

Hi Andy, if I can give you an advice start to trade option using spread. Ie. If you are bullish on S&P500, you short a put at 3800 strike make sure you buy a put at 3700 or 3600. You keep under control your max loss. If you want some more insight let me know.

 

[ironchef]

Better than selling IMO bit still so so difficult to make work long term. Not only do you need direction in your favor...but you also have to predict volatility...fuck man. Oh yea, And clocks tickin dude...one more element of difficulty.

So much respect for options traders making money as it just seems like the most difficult trading to learn and execute.

You only make money when you are right and the whole world is wrong. That doesn't happen too often, especially for us amateurs.

 

[ironchef]

Better than selling IMO bit still so so difficult to make work long term. Not only do you need direction in your favor...but you also have to predict volatility...fuck man. Oh yea, And clocks tickin dude...one more element of difficulty.

So much respect for options traders making money as it just seems like the most difficult trading to learn and execute.

You only make money when you are right and the whole world is wrong. That doesn't happen too often, especially for us amateurs.

@zghorner,

A few humble suggestions from this retail:

1. Get off the beaten path.

2. Read Taleb, Fooled By Randomness.

3. Hunt for special situations.

Maybe you can pick up some bread crumbs the pros discarded.