The Day Traders Are Back, Now Playing With Options
- Thread starter dealmaker
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Why is it hard to write covered calls and generate income?
I have seen these videos of the 20 something's and groups of millennials showing you how to trade options and daytrading in general...it's nothing but lies and fakes, they have huge amounts of followers and most never show a losing trade and show you how easy it is to make money day after day after day. I laugh continuously at anyone thinking those traders are real.
Have you seen any studies showing RH execution to be inferior? I understand what RH does with orders, but do you understand what IB does? From reading ET posts it looks like no one does for sure. To me it's very simple ... If you charge me a commission, I want to be 100% in charge of my order. But if you going to play games with my order, at least have the decency to not charge the commission. If your experience says otherwise, please share.
IB publishes audited proof all over its website. Other sources (Barrons, WSJ, Stockbroker.com) are cited all over the interwebs. Spend two or three days and read it all. They've got nothing to hide.
https://www.interactivebrokers.com/en/general/communiques/2019/2019-Q2-vol7.php
https://www.interactivebrokers.com/en/index.php?f=1685&ns=T
https://en.wikipedia.org/wiki/Direct_market_access
"Where is the transparency? If they got nothing to hide, it should be pretty easy to publish the order handling logic, no?"
It's all over the Interwebs. Read first; think; comment at will.
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Proof of what? I get it, they don't use PFOF, but what happens to the order? I've seen people claim that the order does not get to the exchange until it becomes marketable. So where does it go? Do they internalize? I don't think I've seen a definitive answer from either IB or people on this forum. Where is the transparency? If they got nothing to hide, it should be pretty easy to publish the order handling logic, no?
people claim lots of things but many people such as you believe all you read on a forum instead of reports sent to regulators and vetted by reputable parties.
As for the guy quoting - what is so hard about generating income on a buy write. Do yourself a favor, look up put call parity and from there you can back into what selling a call and buying a stock really is and then say where's the risk?
Since 1999 I have never seen or met 1 long term successful option trader in any market. The issue with buying a hope parlay is you have to be correct on direction and time. The latter is where most eventually fail.
it is a commission generator for brokerage firms.
This is also known as the TastyTrade model. Give out free education that has an undertone of "it's easy just sell puts and collect checks!" Then, wait for all the commissions and margin to roll in. Insidious indeed.
As it has already been posted above IB is one of the most transparent brokers available and release their audited information.
More to the point commissions aren't just about order types. It's about paying for part of the infrastructure that goes into it. IB manages to deliver top of the line execution with some of the cheapest commissions in the country. Here's some more routing information:
https://gdcdyn.interactivebrokers.c...rmSampleView?ad=order_routing_disclosure.html
It appears they get a rebate only on dark pool orders.
Even if you discount execution as a major factor in broker choice, RH's platform is bad. You literally can just visit the Robinhood subreddit to discover how many problems people have running even the simplest trades.