This site helped me

[wxytrader]

Ay chihuahua!!!

When I was buying my 2008 Lambo they didn't ask me if I had an edge lol they asked asked if I had money. Selling options and buying options are completely different. The fact you guys don't realize that probably explains why you don't have Lambos.

For example, if you sell a put option you make money if price doesn't move, if it moves up a little, up a lot, down a little. If you buy a put you only make money if price goes down a lot. That's 4 outcomes make money for the short put, and only 1 outcome for the long put. That's a 4 to 1 edge. Not to mention even if you do end up deep ITM you can simply take the shares.

 

[taowave]

Enlightening post.

OMMMMMM.........

I can honestly say I have never looked at options the way you do..

When you are forced to liquidate all your assets give me call...

LOVE to pick your brain regarding selling gamma with 4-1 Edge and taking delivery if 4 edges weren't enough

When I was buying my 2008 Lambo they didn't ask me if I had an edge lol they asked asked if I had money. Selling options and buying options are completely different. The fact you guys don't realize that probably explains why you don't have Lambos.

For example, if you sell a put option you make money if price doesn't move, if it moves up a little, up a lot, down a little. If you buy a put you only make money if price goes down a lot. That's 4 outcomes make money for the short put, and only 1 outcome for the long put. That's a 4 to 1 edge. Not to mention even if you do end up deep ITM you can simply take the shares.

 

[newwurldmn]

Enlightening post.

OMMMMMM.........

I can honestly say I have never looked at options the way you do..

When you are forced to liquidate all your assets give me call...

LOVE to pick your brain regarding selling gamma with 4-1 Edge and taking delivery if 4 edges weren't enough

you are arguing with a guy who doesn’t believe options trading is profitable but is trying to prove to you that options trading is profitable.

 

[wxytrader]

you are arguing with a guy who doesn’t believe options trading is profitable but is trying to prove to you that options trading is profitable.

not without involving the underlying in the strategy.

 

[wxytrader]

Enlightening post.

OMMMMMM.........

I can honestly say I have never looked at options the way you do..

When you are forced to liquidate all your assets give me call...

LOVE to pick your brain regarding selling gamma with 4-1 Edge and taking delivery if 4 edges weren't enough

There is no scenario where I take losses over delivery.

 

[cesfx]

Everyone has an opinion about how to make money
with options, but only a few are actually making money.
Sounds about right.

Everyone has an opinion about how to make money with options, until they move from paper trading to real money.

When I was buying my 2008 Lambo they didn't ask me if I had an edge lol they asked asked if I had money. Selling options and buying options are completely different. The fact you guys don't realize that probably explains why you don't have Lambos.

For example, if you sell a put option you make money if price doesn't move, if it moves up a little, up a lot, down a little. If you buy a put you only make money if price goes down a lot. That's 4 outcomes make money for the short put, and only 1 outcome for the long put. That's a 4 to 1 edge. Not to mention even if you do end up deep ITM you can simply take the shares.

Which one did you get?

 

[wxytrader]

Everyone has an opinion about how to make money with options, until they move from paper trading to real money.

Which one did you get? View attachment 333966

I have never once paper traded. It's a wot. In fact a brokerage agent on the phone suggested if maybe I should open a paper trading account when I was down 28k on a BITO leap. My equity was down to 5k lol. You guys would have bailed. I was getting a little nervous that the move would happen by the DEC19 expiry, because FTX scandal blew my timing, but held strong and BOOM! My only regret is I didn't hold longer and would have had another Lotus, but there will be other opportunities. The moral of the story is there is a reason I am on this side of the phone, and the agent is on the other.

(2008 Spyder (black)

 

[taowave]

You almost blew up your entire account short a 1 lot??

Then you make it back and more by being assigned on the short put??

And you are still dumb enough to think the genius of the trade was made by selling cheap gamma and being reckless?

2008 Lotus Spyder?? I cant find that model. Hmmmmmmm

I have never once paper traded. It's a wot. In fact a brokerage agent on the phone suggested if maybe I should open a paper trading account when I was down 28k on a BITO leap. My equity was down to 5k lol. You guys would have bailed. I was getting a little nervous that the move would happen by the DEC19 expiry, because FTX scandal blew my timing, but held strong and BOOM! My only regret is I didn't hold longer and would have had another Lotus, but there will be other opportunities. The moral of the story is there is a reason I am on this side of the phone, and the agent is on the other.

(2008 Spyder (black)

 

[wxytrader]

You almost blew up your entire account short a 1 lot??

Then you make it back and more by being assigned on the short put??

And you are still dumb enough to think the genius of the trade was made by selling cheap gamma and being reckless?

2008 Lotus Spyder?? I cant find that model. Hmmmmmmm

wha? Lotus Evora, Lambo Spyder

 

[Quanto]

When I was buying my 2008 Lambo they didn't ask me if I had an edge lol they asked asked if I had money. Selling options and buying options are completely different. The fact you guys don't realize that probably explains why you don't have Lambos.

For example, if you sell a put option you make money if price doesn't move, if it moves up a little, up a lot, down a little. If you buy a put you only make money if price goes down a lot. That's 4 outcomes make money for the short put, and only 1 outcome for the long put. That's a 4 to 1 edge. Not to mention even if you do end up deep ITM you can simply take the shares.

Hmm. this is only half of the equation
B/c Put buyer risks only the Premium, whereas you as the Put seller do risk Strike - Premium.
Do the comparision for ATM and see yourself.
That's the relation for S=10 K=10 DTE=45 Pr=4 :

The Put seller risk $6 and can make max $4.

The Put buyer risk $4 and can make max $6.

This balances out, IMO.