Option selling for premium

Discussion in 'Options' started by John9999, Mar 3, 2018.

  1. ironchef


    Sorry, I am a skeptical retail guy. I read your posts carefully, they are quite educational so I appreciate your participations.

    I am responding to your post not in disrespect but as an observation.

    When I looked at the performance of hedge funds, actively managed mutual funds, most of them don't do any better than passive funds, so those managers really don't have a "winning formula" to share, they are just asset accumulators living off fees.

    My conclusion is it is much easier to get rich by living off fees and services than by trading so anyone who can will try to get rich with fees and services rather than trading for oneself. Perhaps you are an exception and if so my hat off to you sir.

    My respect goes to my fellow traders who risk their own money, live and die by their own skills, without the safety net of fees or OPM.

    Best wishes to all.
    #11     Mar 4, 2018
    Antartica likes this.
  2. selling premium is a dangerous game you should always have a long option to limit your downside. you might win 90% of the time but the 1 time you lose all your winnings can turn into a loss if your not careful.
    #12     Mar 4, 2018
  3. spindr0


    Comparing yourself to a money manager is a specious analogy and rest assured that it is NEVER my concern how selling advice is good for a snake oil salesman.
    #13     Mar 4, 2018
  4. spindr0


    Scraping fees from investors and traders (rather than from actually trading) provides a very nice ongoing annuity.
    #14     Mar 4, 2018
  5. You must be really confused, so let me say it one last time:


    All I do is running an educational trading forum where I share my experience and my trades, along with team of mentors who do the same. The rest is up to members. Like one of the members mentioned, "I spent thousands on mentoring, so $125 is a bargain to me".

    You can definitely try and get some education from free forums where you should filter information because 90% is garbage. Or you can get into a paid forum where members have respect to each other and only serious traders stay. It is really up to you, so I don't understand what is the issue.

    And yes, our members live and die by their own skills. Nobody is managing their money and nobody is telling them what to do. Those who are willing to put the time and effort are killing it. Those who don't leave. It's that simple.
    #15     Mar 4, 2018
  6. Skepticism is always healthy. Hatred and jealousy are not. They will eventually kill you. Chill out and open your heart, even to something you might not understand or accept.
    #16     Mar 4, 2018
    OptionsOptionsOptions likes this.
  7. This is poor advice.
    #17     Mar 4, 2018
    kevagonia likes this.
  8. ironchef


    I do get your points, thank you. I also appreciate your posts as I enjoy studying and understanding different methods of trading. Your posts are quite educational and yes I did study your method based on them and visiting your site, so no need to argue or debate anymore. Hang around please.

    If your students are killing it, you must be too and I congratulate all of you.:thumbsup::thumbsup::thumbsup:

    Have a good day and best wishes to you.
    #18     Mar 4, 2018
  9. ironchef


    Why may I ask?
    #19     Mar 4, 2018
  10. 1) Find/post the price curve of a far-OTM option, and explain why it's a good idea to sell something with a 1|100000000000000 reward-to-risk ratio where, as the clock ticks down, there is nearly-zero decay.

    2) Selling options for premium-generation is a risk-acceptance insurance business model: this model is based on applying measures of Central Tendency to various assets around the real world: cars, house, your health, and the price of Intuitive Surgical and USSteel and JNJ sitting in your portfolio. If you don't understand this insurance business model, and what makes the option prices rise and fall, and by how much, and when and for how long, you don't belong there.

    The answer to your question is ridiculously easy. But right now, you're sitting in the starting line of the Indianapolis 500, and posting for directions on how to navigate the oval track. If I tell you the old, "Drive fast. Turn left." you're going to blow up your account. I cannot assist in that.

    Find the value-decay curve of a far-OTM option, and take a good look at it: it is NOT the ATM curve that you believe it is. And it will kill you.
    #20     Mar 4, 2018
    KevinD and sss12 like this.