Strategy: Selling Put Options: The Best Income Method?

optioncoach said:
2) good advice being given to stop saying this strategy has no risk. Saying you could never lose money is a rookie mistake but you claim to know a lot.
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When done right and there is no market crash or a black swan event, then it can be risk-free
for the own account (excluding the credit) as described: a possible loss would be paid from the credit...
 
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optioncoach said:
So your claim that this strategy can make 20-30% risk free?
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Why are you exaggerating now to 30%?
Just simply find a premium in similar relation to the strike, then it should work the same as it did in the case shown.

I think I would like to make a bigger difference between current price and the strike than done in the article,
but then I guess the profit won't be that high. I haven't tried out new possibilities yet.
 
optioncoach said:
OK it would never happen....lot of option trading geniuses on this site...why ask for advice...just go short naked options..no need to understand volatility... nothing to see here...

<you are kidding about VRX I hope...the stock that plunged 20 points haha>
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The first 8 points was implied in the options. The last 6 were not :(

I have been short vol in VRX since October. Amazingly I am up money on it (as i was initially selling 120 (price and vol). I was up money today until the SEC announcement came out. I'm holding steady but tomorrow i might trim some delta.
 
botpro said:
Why are you exaggerating now to 30%?
Just simply find a premium in similar relation to the strike, then it should work the same as it did in the case shown.
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Ok you are saying you can make 15%....20%...25% pick a number rather than avoiding the question... you can make that amount Risk-Free....

You are here as someone new to options and claiming you can make double digit (does that soothe your mind better?) returns risk free....

Please tell me that is what you think...
 
optioncoach said:
Ok you are saying you can make 15%....20%...25% pick a number rather than avoiding the question... you can make that amount Risk-Free....

You are here as someone new to options and claiming you can make double digit (does that soothe your mind better?) returns risk free....

Please tell me that is what you think...
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He is also selling a system that buys calls are can earn 1000%/year. So he's found an arbitrage!
1. Buy calls with his automated system to earn 1000%
2. Sell puts naked to earn 30%
3. Hang out in Scrooge McDuckian vault.
 
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