Didn't Robert Kiyosaki get rich waiting on the Court House steps to induce desperate people to Sell distressed Properties to him??? Wasn't Robert Kiyosaki predicting the collapse of the financial system a few years ago, and that he would be thrown in Jail for speaking out??? Passive Income. Just Position trade the SPX or NDX, keeping out of Corrections and Crashes.
Options writing isn't where you want to go if you want *income big style*. Most option writers have a high win percentage but the wins are small relative to the losses. You'll often see a long string of small wins then a large loss that wipes out many wins. (See graph below.) The closer to the money you sell gives you more income but also increases the risk. White River Group is a CTA that's been selling options for many years. Looking at the results below it's easy to see you'd do better just buying the market & holding. There are some option writers that are more consistent buy usually the wins are pretty small so they avoid the larger losses. Selling spreads is safer but more commissions reduces performance and if you go closer to the money because of the loss protection it'll reduce your win rate so performance will be more volatile. ***Search "James Cordier natural gas" to see what can happen if you don't have a strict plan for bad trades.
A to your point related fact is that in the otc markets facilitation desks run analytics of which counterparts they frequently lose money with and those are either discouraged to trade with the desk through inflated spreads or outright told that the relationship is over. Counterparts that bring in lots of pnl are "rewarded" by receiving end of year cases of champagne.
You mean buying the PAST market and holding. Chances are incredibly slim that equity markets manage to repeat the feast of the past 14 years.
If you could trade options 24/7 selling wouldn't be as bad...but for equities at least when the underlying gaps against you overnight or weekend while you're short convexity... Any of you primarily trade options on futures for the above reason?
Agree. If he wants to make *income big style* he'd probably be better off BUYING puts/calls over the next 10 years rather than buying & holding the market OR selling options. Could be wrong though as equity markets can moon if the fiat currency devaluation accelerates.