Supplement retirement income

aplino said:
I am looking for ways to supplement my retirement income with low risk.
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Being a greeter at Walmart is one way. No risk (accept perhaps getting Covid-19 from a shopper.) It gives you a reliable income stream and you're not paying commission and fees. Plus you're getting 100% return on your investment (time) less Federal, State and local taxes.

Best
 
Common guys, can we do better than sarcastic discouraging remarks. I think his account is too small for what he’s trying to achieve, but I don’t think he’s that unreasonable. I am a bit concerned about below statement.
aplino said:
I have been trading stocks very lightly for years with no consistent results.
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One of three things...You are delusional on your projections (20%, being a new trader). You are misinformed about what is normal in the option world. OR you are trying to put us on...Sit back and laugh. If it is not the third one, I will give you some good advice...If you choose to take it, it's up to you.

If you work for a company/government, fund your 401K/pension to the max. Maybe put it in growth US or international mutual funds. If they do not offer a 401K, fund your IRA to the max...Same thing. Wait and learn more about stocks and options. Buy a house, townhouse, or condo (worst house in the best location). If you already have one, use the extra money to do major/minor repairs on the house. If you don't know what needs to be done, ask a few people who you trust...What should be done?? Pay off your credit cards. Wait on the student loans (the government may help you with that one). Ask a trusted friend where you spend too much money.

Two books to read...The Millionaire Next Door and Rich Dad Poor Dad. They are old books, but they still have great insight. Start with the basics before you delve into stocks/options. Lastly, read this twice...It happened to me. It can happen again!! If you do not understand anything in this article, FIND OUT WHAT HAPPENED!! There are some protections in place now, much of this could not happen again...But eyes wide open.

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwiLq9WZgvntAhUSca0KHfSpCK4QFjAAegQIAhAC&url=https://en.wikipedia.org/wiki/Black_Monday_(1987)&usg=AOvVaw3xT6npCO2c7zlTcVqMmSE4

PS What backups to you have in place, in case a system or broker goes down for a few hours/days??
 
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qlai said:
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Those are good staff glai!!!
Assuming that you have a reasonable edge, using only 40%-50% of your portfolio and allocating a small portion on each trade you are in excellent shape. Did you try it yourself? It would be a challenge to manage and over look 30 positions at once, though. Thank you for sharing.
 
aplino said:
Assuming that you have a reasonable edge
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Imho, there’s no edge in this - you are simply taking on risks that someone is trying to offload.


aplino said:
Did you try it yourself?
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Not yet but I am contemplating this. I am thinking 30% premium selling, 30% long VXX, 30% cash and raise or lower these based on discretionary trading.
 
I understand that if this is a zero sum game there is no way to beat it.
Kirk at Option Alpha talks about IV's Over Expectation, Managing Winners/Profit Taking and Adjustments and Rolling and tries to show that this is not a zero sum game. He also claims his back testing proves it is beatable. But this is for the past not the future.
 
aplino said:
I understand that if this is a zero sum game there is no way to beat it.
Kirk at Option Alpha talks about IV's Over Expectation, Managing Winners/Profit Taking and Adjustments and Rolling and tries to show that this is not a zero sum game. He also claims his back testing proves it is beatable. But this is for the past not the future.
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OK so zero sum game means the stake is split among players at the table. Think you have 10 participants at a game of poker, each wages $100 of capital on the table, overall there's $1000 of capital. At the end, there will still be $1000 of capital but the allocation of it to the 10 players might have changed. So the sum of wins of some guys + losses of other guys = 0, thus zero sum.

A zero sum game can be beaten, obviously (ex: a poker player may take all the money). Perhaps what you're trying to say is that a zero sum game can't be beaten by ALL the players. After a while some have to have less in order for others to have more.
 
Yes, I agree. I should have said that in a zero sum game somebody has to loose in order somebody else to win. In my understanding Kirk is saying that by using V's Over Expectation, Managing Winners/Profit Taking and Adjustments and Rolling, a trader can get an edge over the others!! The issue is how can you trust you have an edge
 
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