Selling Options for passive income by Robert Kiyosaki

[mervyn]

You are wildly bullish and sold 39 day puts for .23??

And what makes you think Vol is high??

What am i missing??

What you are missing is that this is not the only trade I am doing, nor the only symbol, cisco being another.

 

[taowave]

You went from buying 6 month-1 year 65 calls to selling cheap garbage puts???

Printing dollars to printing pennies

At least use the premium to finance a call spread....

What you are missing is that this is not the only trade I am doing, nor the only symbol, cisco being another.

 

[mervyn]

You went from buying 6 month-1 year 65 calls to selling cheap garbage puts???

Printing dollars to printing pennies

At least use the premium to finance a call spread....

Premiums are always putting to use, financing July calls on WOLF and a bourbon.

And a gift to the wife, probably under 5k, so no risky trades until Jan next year.

 

[Sergio123]

as mentioned, i am running out of available cash, tied up in arm and tsla puts. this money is from available margin. need to see where it trades after this fake holiday rally.

Fake or not. I will take it.

Just in case it is real then yields are going to adjust so there is no inflation and no recession next year. And if that's the case then the market needs to broaden out.

I am picking one of the worst performing sectors of the year to make a bullish play on. But Its not China, Its not renewables. Its not utilities, Its not real estate. Its not staples.

 

[ironchef]

as mentioned, i am running out of available cash, tied up in arm and tsla puts. this money is from available margin. need to see where it trades after this fake holiday rally.

Not trying to give you a hard time because I like your opinion on long leaps better.

 

[mervyn]

Not trying to give you a hard time because I like your opinion on long leaps better.

waiting it out is the hard part.

 

[Windlesham1]

I was a market maker on the exchange for over 5 years,and was an upstairs market maker at 2 major IB's..Without 2 sided flow, the edge is not what you think it is, and 99 percent of the time market makers immediately delta hedge..

You and several other posters need to get off the market maker vs retail Conspiracy theory.It only exists in your mind

I respect market makers but for several years they have not commited to making a market unless is suits them, maybe I should have said that their approach to trading was profitable on a daily basis because or order flow. It's easier to win when the other player goes first. I have never had an issue with market makers, if the prices aren't there, I don't trade- like Oct and currently Nov.

 

[Windlesham1]

Every strategy loses eventually. There are no absolutes. You have to be adaptive and there is a time and place for it.

I started selling naked puts after the Covid crash when everything still had high premium. I seriously thought that was how you collected stock dividends.
You can't just use one strategy all of the time. You have to mix and match at various times.

At last count I have 50 strategies!

 

[ironchef]

99 percent of the time market makers immediately delta hedge..

That is why they are willing to take the other side of my longs.

 

[Perspective]

The best financial minds, traders, are the options traders, very few amateurs can get an edge. After several years studying and trying, I am still losing money in B-fly.

If we amateurs play, we provide liquidity, i.e., I am paying for @taowave's and @destriero's yachts.

Unless you are big "Johnson" swinging Destriero type playing esoteric sticky delta etc., stay away from Butterfly. These spreads are VEEEEERY slow moving and to quote the big man himself " delta netral is just an illusion". Been there done that (just my experience).

PS: give calendars an diagonals a (small) chance instead.