Writing options for a living

Or I guess selling options. The answer is yes it is. But I will tell you why I was inspired to even comment. Today I was trying to teach someone very close to me so of the very basics on trading options for a living and I realized and she realized that it was not her cup of tea and that was the end of it. And you know what, she was smart to drop it right then and there.

Years of hard work, study and even failure are essential but that's not enough still, you have got to have the talent.

I've heard it all from the super analyticals to the touchy feely types and most of them aren't going to make it. They just don't get it and it's not their fault really, it is inherently skill and talent just as any great musician or great athletic possesses. I could no more be a great athlete or musician that fly to the moon backwards. It the same with trading.

So most of you out there in forum land, don't quit your day jobs. For the two that that say bullshit, I can do, I must do it, I'll pay the price, I know I have the talent, I work, sweat blood, do what ever it takes. One of you will make.

 

Look at Mike Tyson, he made a lot of money using his hands, but because he could not use his head, he lost it all again, and actually ended up in prison.

Always think about what you do, and if you are not 1000% sure that you know exactly what you are doing, then odds are you will end up like Mike Tyson, although I hope you will never see the inside of a prison, that was total stupidity !

RPT [/B][/QUOTE]


With all due respect, may I point out that Mike Tyson had no clue about options trading, he would have lost it even faster if he knew how to trade options.

 

Nothing is easy in Options trading. Its one of the most toughest professional involvements for a person constantly risking lots of margin. Never for a moment say you can make 5-10% easily, cause you don't. You have to put up 95-90% of your own money as collateral to make that.

 

Try keeping all your positons to be one standard deviation away from the price.

 

What if the market gaps through your strike by 5%?

 

What about Vega risk ?

 

:eek: :eek: :eek:

Leveraged to make 30% a month of your money? You'd probably wipe your account out if a minor event such as Thursday or Friday happened.

And I thought my aim of 4% a month selling call spreads was risky.

 

Oops, shoulda used both hands.

 

ES futures are open 23 hours a day and I am along way from the market even after last weeks sell off.

 

I am taking that risk.