Anyone done Options trading?

Someone here wrote recently that for the time/energy/effort spent on AP, you can make more $ doing something else.

That got me thinking how many hrs/week i spend at the casino plus the travel time to/from there.
With options trading I wouldn't have drive time since I'm working from home so my $/hr wouldn't be penalized by commuting time.

Has anyone done options trading?
What do you think of it as a side gig?

I dabbled with it in the mid 90s, and made some money but I think my portfolio was up forty percent that year so anyone could have made money. I almost got burned on one option play and honestly it scared me.
My personal experience with AP showed me there were better uses for my time. Others can have different opinions, and I met some folks that seemed to be doing alright for themselves but had no health insurance or retirement plan and didn't seem to be putting anything into their retirement.

I'm sure there are YouTube videos on the subject to get you up to date on how to do it on your phone or computer. But since it's been so long since I thought about it (more than 2 years), I've forgotten what I've learned. But trying to short sell stocks that are crashing to zero may not pay out even if they hit zero.

I have done lots of it. I have turned on several people to it when you include the people I told then told others. What do I think of it?

I love it.

You need to keep to just 1-2 strategies. I suggest running covered calls on lower priced stocks with high theta (time decay) values. Then graduate to "poor man's covered calls" covering with In The Money options.

I hope to learn to write a screener program but have a couple other projects going at the moment.

Anything else just ask.

Quote: AZDuffman

I have done lots of it. I have turned on several people to it when you include the people I told then told others. What do I think of it?

I love it.

You need to keep to just 1-2 strategies. I suggest running covered calls on lower priced stocks with high theta (time decay) values. Then graduate to "poor man's covered calls" covering with In The Money options.

I hope to learn to write a screener program but have a couple other projects going at the moment.

Anything else just ask.
link to original post

Mind if I ask if you know anyone that does the wheel? There's a stock I've dabbled in doing the wheel on, but I obviously do it improperly because I get assigned to often.

Quote: TheCapitalShip

Quote: AZDuffman

I have done lots of it. I have turned on several people to it when you include the people I told then told others. What do I think of it?

I love it.

You need to keep to just 1-2 strategies. I suggest running covered calls on lower priced stocks with high theta (time decay) values. Then graduate to "poor man's covered calls" covering with In The Money options.

I hope to learn to write a screener program but have a couple other projects going at the moment.

Anything else just ask.
link to original post

Mind if I ask if you know anyone that does the wheel? There's a stock I've dabbled in doing the wheel on, but I obviously do it improperly because I get assigned to often.
link to original post

What is "the wheel?" I might know it by another name.

Quote: AZDuffman

Quote: TheCapitalShip

Quote: AZDuffman

I have done lots of it. I have turned on several people to it when you include the people I told then told others. What do I think of it?

I love it.

You need to keep to just 1-2 strategies. I suggest running covered calls on lower priced stocks with high theta (time decay) values. Then graduate to "poor man's covered calls" covering with In The Money options.

I hope to learn to write a screener program but have a couple other projects going at the moment.

Anything else just ask.
link to original post

Mind if I ask if you know anyone that does the wheel? There's a stock I've dabbled in doing the wheel on, but I obviously do it improperly because I get assigned to often.
link to original post

What is "the wheel?" I might know it by another name.
link to original post

I apologize in advance if the terminology is wrong, I've only dabbled a little bit in options and it's something I'd like to do.

Basically, you find a stock you sell a cash secured put on, with the goal that you sell at a price you are unlikely to get assigned but have a decent premium (I believe I heard the target delta is around 0.45 for this?), you pocket the premium, and repeat, however, you WILL eventually get assigned, after you get assigned you sell covered calls, again with the goal of pocketing premiums, and eventually you get assigned on the call as well, and repeat it from the beginning buying another cash secured put and you just keep doing this like you're going around a wheel.

Quote: TheCapitalShip

Quote: AZDuffman

Quote: TheCapitalShip

Quote: AZDuffman

I have done lots of it. I have turned on several people to it when you include the people I told then told others. What do I think of it?

I love it.

You need to keep to just 1-2 strategies. I suggest running covered calls on lower priced stocks with high theta (time decay) values. Then graduate to "poor man's covered calls" covering with In The Money options.

I hope to learn to write a screener program but have a couple other projects going at the moment.

Anything else just ask.
link to original post

Mind if I ask if you know anyone that does the wheel? There's a stock I've dabbled in doing the wheel on, but I obviously do it improperly because I get assigned to often.
link to original post

What is "the wheel?" I might know it by another name.
link to original post

I apologize in advance if the terminology is wrong, I've only dabbled a little bit in options and it's something I'd like to do.

Basically, you find a stock you sell a cash secured put on, with the goal that you sell at a price you are unlikely to get assigned but have a decent premium (I believe I heard the target delta is around 0.45 for this?), you pocket the premium, and repeat, however, you WILL eventually get assigned, after you get assigned you sell covered calls, again with the goal of pocketing premiums, and eventually you get assigned on the call as well, and repeat it from the beginning buying another cash secured put and you just keep doing this like you're going around a wheel.
link to original post

Had the idea but never did it. Issue I see is hard to pull decent theta unless you have higher IV which means the stock is moving. So beware there I think.

I think it was 2021 I was in a tobacco start-up stock was trading in the 3s with $0.30 in theta for less than 30 days to expiration. Yeah, that good! Sadly it only lasted a few moths. Too bad it is hard to find these kinds of stocks. We were also scalping AAPL getting a profit of about $.25 for a few days wait. Let me tell you, if you think your football team protecting the spread in the 4th quarter is stressful this is worse.

Quote: 100xOdds

Someone here wrote recently that for the time/energy/effort spent on AP, you can make more $ doing something else.

That got me thinking how many hrs/week i spend at the casino plus the travel time to/from there.
With options trading I wouldn't have drive time since I'm working from home so my $/hr wouldn't be penalized by commuting time.

Has anyone done options trading?
What do you think of it as a side gig?
link to original post

I don't do option however, I activley look for beaten down blue chips and i dabble in a litttle day trading.
Isn't the advantage play for you to do both all your trading can be done from your hotel room airport etc.

Assuming you are going to trade, at all: my belief has always been that options trading is for those who lack the funds to trade the actual equity. (There are of course notable exceptions, including George Soros and his innumerable SPY puts.) Options traders leverage their money heavily.

The advantage to options trading is that your loss is limited to the amount you lay out for the option. With equities, realistically your loss is almost never going to amount to the sum of all you put into the stock (of course, tell that to DarkOz), unless you end up with a real turkey.

The disadvantage to options trading is not just that you have to be right, but you have to be right on time. With equities, you have all the time in the world (once you understand that even a few weeks is an eternity in the modern day stock market) for the stock to come back even if it drops temporarily .


Isn't it enough that you've got

the swingingest and the best?

You want me to be on time, too?

I thought the options for the 3x financial indexes (FAS and FAZ) were not priced properly when these products were new and the GFC hit. The Black–Scholes model was never going to work. The 3x and 2x indices ratcheted themselves into oblivion by their construction during periods of high volatility. I tried to develop models that worked better, but my brokerage suspended options trading on these dangerous indices before I had anything I was willing to put money behind. I didn't want to trade anyhow. Just being short the right industries made me a killing during the GFC.

The problem with shorties is they never leave well enough alone and keep trying to short until they end up giving it all back. And that's besides the fact that shorties have typically lost a boatload already until their broken clock finally is right twice a day. People don't just wake up one morning and decide to short - it is something they have tried unsuccessfully in the past too.

Of all the tens of thousands of trades I have done the few where I lost money were shorts. I have almost never lost money going long, at worst, had to ride it out until the given stock came back. But there is nothing like short fear which often compels you to cover for fear of an unlimited down side if the stock keeps rising. Which gets to why options are not the way to go if you want to increase the likelihood of success for each trade - with equities the clock is never ticking, especially if you avoid margin.

Options trading can be a viable side gig for those who are willing to put in the time and effort to learn the ins and outs of the market. It can be a way to earn additional income without having to leave your home, as you mentioned. However, it is important to note that options trading comes with risks, and it is not a guaranteed way to make money. It is important to do thorough research, have a solid understanding of the market, and have a risk management plan in place before diving in. Additionally, it may be helpful to seek advice from a financial advisor or experienced options trader before making any major investment decisions.

Quote: Gullywin

Options trading can be a viable side gig for those who are willing to put in the time and effort to learn the ins and outs of the market. It can be a way to earn additional income without having to leave your home, as you mentioned. However, it is important to note that options trading comes with risks, and it is not a guaranteed way to make money. It is important to do thorough research, have a solid understanding of the market, and have a risk management plan in place before diving in. Additionally, it may be helpful to seek advice from a financial advisor or experienced options trader before making any major investment decisions.
link to original post

If you have to ask a financial advisor you are not the person to be trading options. "Financial Advisors" are salespeople. They sell you on letting their firm manage your money. Now, they may be highly trained. It is not easy to get your CFA. However, they will always end up advising against. As it should be since half the USA population does not know preferred stock from livestock.

Options trading is for your risk capital. You want to be a net seller as what is it--90% of options expire worthless? You had better believe I want to sell something to someone who has a 9 in 10 chance of never showing up to pick it up. And if they are going to pick it up I have another 90+ chance of giving them their money back so I can sell it to someone else for an even higher price.

That being said, I have had many a stuck trade. Stuck on a big one now. But I limit my risk. Will just find others. And this is why you talk to other traders. We have practical advice that a financial advisor would never tell and might even be prohibited from telling.

Quote: MDawg

Of all the tens of thousands of trades I have done I have almost never lost money going long,

who could have guessed that_____?_______ truly amazing

and almost never loses a session at bacc thanks to his uncanny sense of when streaks are coming

why is this amazing individual only known on gambling boards thanks to his constant bragging

why isn't he known worldwide_________?_________ 𝙨𝙪𝙧𝙚𝙡𝙮 𝙝𝙞𝙨 𝙬𝙞𝙣 𝙥𝙚𝙧𝙘𝙚𝙣𝙩𝙖𝙜𝙚 𝙞𝙨 𝙛𝙖𝙧 𝙜𝙧𝙚𝙖𝙩𝙚𝙧 𝙩𝙝𝙖𝙣 𝙖𝙣𝙮 𝙜𝙖𝙢𝙗𝙡𝙚𝙧 𝙤𝙧 𝙨𝙩𝙤𝙘𝙠 𝙥𝙞𝙘𝙠𝙚𝙧 𝙬𝙝𝙤 𝙚𝙫𝙚𝙧 𝙡𝙞𝙫𝙚𝙙

where is the New York Times and the Wall Street Journal__________?

why aren't they chronicling these incredible feats__________?

American Journalism has missed the boat on this guy.

So far, they've missed their chance to tell one the greatest stories ever told

if he wanted to be really kind to WOV members he could offer to send them his autograph upon request






.

Quote: lilredrooster

if he wanted to be really kind to WOV members he could offer to send them his autograph upon request.
link to original post

I probably have MDawg's signature on many pieces of paper already. A financial genius of this magnitude surely must have served as Secretary of the Treasury at some point.

Quote: lilredrooster

who could have guessed that_____?_______ truly amazing

and almost never loses a session at bacc thanks to his uncanny sense of when streaks are coming

why is this amazing individual only known on gambling boards thanks to his constant bragging

why isn't he known worldwide_________?_________ 𝙨𝙪𝙧𝙚𝙡𝙮 𝙝𝙞𝙨 𝙬𝙞𝙣 𝙥𝙚𝙧𝙘𝙚𝙣𝙩𝙖𝙜𝙚 𝙞𝙨 𝙛𝙖𝙧 𝙜𝙧𝙚𝙖𝙩𝙚𝙧 𝙩𝙝𝙖𝙣 𝙖𝙣𝙮 𝙜𝙖𝙢𝙗𝙡𝙚𝙧 𝙤𝙧 𝙨𝙩𝙤𝙘𝙠 𝙥𝙞𝙘𝙠𝙚𝙧 𝙬𝙝𝙤 𝙚𝙫𝙚𝙧 𝙡𝙞𝙫𝙚𝙙

where is the New York Times and the Wall Street Journal__________?

why aren't they chronicling these incredible feats__________?

American Journalism has missed the boat on this guy.

So far, they've missed their chance to tell one the greatest stories ever told

if he wanted to be really kind to WOV members he could offer to send them his autograph upon request






.
link to original post

Trolling. Three-day suspension. It's not just this post, but many others.

As a reminder, nobody is required to believe anybody. One can even politely point out the ridiculously long odds of some claims, like Alan's 18 yo's. However, at some point, it becomes trolling, if done excessively and with too much sarcasm.