Generate income through options

Discussion in 'Options' started by ssp729, Apr 3, 2019.

  1. smallfil

    smallfil

    You are better off risking that $15.00 assuming you got options trading approval to buy calls and puts to just put that $15.00 on an out of the money call option for instance just before earnings announcement. If you get real lucky, you might end up with a couple of hundred dollars. If not, go get a job! Losing $15.00 is not the end of the world!
     
    #11     Apr 3, 2019
  2. ssp729

    ssp729

    So the book that i was telling is this:

     
    #12     Apr 3, 2019
  3. tommcginnis

    tommcginnis

    Nobody has used The Magic Word yet.

    ExpectancyCapture.PNG

    The magic word is Expectancy.
    The numbers above hold for $5 spreads within the last week of expiration
    or for half of $10 spreads, bought back after 5 trading days, or for..... ad nauseum.
    It gets even worse if you consider that you might likely roll/exit when the market touches your short strike -- which happens at roughly twice the rate of P(HIT). OUCH!

    So, success here is not found in a book on the basic mechanics, but on advantageous entry -- *stalking* the market. That will push out your condor's legs to best advantage: sell on extremes.
     
    #13     Apr 3, 2019
    piezoe likes this.
  4. sfwind

    sfwind

    Need a six-figure account to do it. IB is the best place because they pay you good interests for the proceeds.
     
    #14     Apr 3, 2019
  5. ssp729

    ssp729

    Hi sfwind. What do you mean interests? Can you please give me an example?
    Tommcginnis i didn't think about it...
     
    #15     Apr 3, 2019
  6. Woodrow97

    Woodrow97

    I'm new here but there are plenty of threads on this forum with regards to naked options selling, ICs, spreads.

    They were very useful in that I did not have to go through the pain of blowing up a few trading accounts with OPM, then learning the lessons myself.
     
    #16     Apr 3, 2019
  7. sfwind

    sfwind

    When you sell options, you receive cash aka option premiums in your account. IB will pay you interest (higher than most banks).
     
    #17     Apr 3, 2019
  8. vegamedic

    vegamedic

    in my experience, no unless you trade the spreads small enough to be able to delta hedge with your available capital. i've been trading iron condors/flies for coming up on two years and it hasn't gone well. this straight-up market puts your call spreads DITM and leaves your put spreads way OTM but still retaining enough value due to skew that closing them to roll the whole position out is expensive.

    i'd wait until the bull calms down a bit or you can adequately delta hedge. don't be like me
     
    #18     Apr 3, 2019
    piezoe likes this.
  9. Mnewton

    Mnewton

    Credit spreads are dangerous unless you know what you are doing.
    Look at Kirk on optionaloha he does a lot of credit spreads.
    You are better to start with cheap call and put spreads, strangles on earnings, cheap ITM calls on Friday weeklies and see how you get on.
    Sign up for thinkorswim and learn the platform, will take a while but paper trade first initial you get used to it.
     
    #19     Apr 6, 2019
  10. qlai

    qlai

    I am curious, the title of the book clearly states below, yet it sounds like you want to live on that income. What gives?

    for Supplemental or Retirement Income
     
    #20     Apr 6, 2019