Hello, If you buy options only to sell the insurance....How much can you make i heard of a program that is almst risk free and that it dosen`t invlove the black and scholes method. Is there a method course strategy that teaches you how to trade options almost risk free?If yes can you recommend me some books courses i would like to check and dive a little more into research
You should check out tastytrade. Best education on options and it’s free. You will not consistently make money buying options. Best wishes. Options alpha is also good.
If you want to learn the risk free option strategy, I would suggest you read at least 1 book on finance first.....
No such thing as a risk free strategy in options unless all you are earning is the risk free rate....
Depends on your definition of "risk free" but buying options is roughly there. Same as buying sports bets: supposedly you've let the money you're paying on them off your mind. You can't lose your house like with levereged short positons so that's as "risk free" you can get in this business. Also if you trully want "risk free" as far buying options goes, stick to cash settled ones. Most US options have physical delivery and you CAN lose a lot if you're not careful managing expirations.
I find this statement confusing. Same for the entire question. And, there are no risk free ways to make above the riskless rate.
My guess he would be referring to a credit spead - the long option would be "insurance" to cap the potential loss.
Go back to where or from whom you've heard this saying "buy options only to sell the insurance" and ask them to explain and elaborate on what they've said and then do more research about it by googling or come back here and we will be happy to help you further. Right now we don't even know what you are trying to ask. "Buy options only to sell the insurance" does not exist as an option trading strategy. So far everybody's been correct in saying there is no risk-free rate to earn an above risk-free rate of return, not even almost risk-free. There is ALWAYS risks which will result in losses regardless which option strategy on trades with. And there is more more thing, there is also no such thing as option without Black & Scholes models. Black & Scholes models is used in pricing of all options; Black & Scholes model is what gives options its prices, its foundation at least.