Has anyone ever rolled options continously to the point where.....

Discussion in 'Options' started by S2007S, Sep 16, 2024.

  1. S2007S

    S2007S

    Has anyone ever rolled options continously collecting the premium where the average cost of the stock at assignment is basically 0?
     
  2. I see hoards of retail investors playing with options and succumbing to the fallacy that you can just roll out until you win (and/or "getting paid" to purchase a stock by assignment), making brokers and market makers rich, and not realizing they lose money in the long run. It's a fool's game. In reality, an options position is a stake in directional exposure (delta) and volatility exposure, and a few others. Furthermore, whether a loss is realized or unrealized doesn't matter when used as a performance metric.
     
    Flynrider and HawaiianIceberg like this.
  3. maxinger

    maxinger

    upload_2024-9-18_9-20-53.jpeg upload_2024-9-18_9-21-7.jpeg upload_2024-9-18_9-21-31.png

    This reminds me of the NEVER GIVE UP thing.
    If you roll and roll a million times, surely there will be one time when u will be successful.

    Always have a hard stop in place.