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Option trading educational resources

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  • Tim
    replied
    Selling options can enhance returns, particularly if you aren’t time sensitive. If your plan is to liquidate a particular portion of a portfolio position or add a position, the option premium goes in your pocket, now or later.
    Options can be used conservatively.

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  • Tangler
    replied
    Originally posted by Zaphod View Post

    Being short uncapped gamma. Dont do it.

    Dont sell naked calls/puts.

    I think if you want to understand options sure read a bit, but you really have to trade. Very small size just to get a feel. There are a couple of books that are decent, but the best way is to take some money, sit by the fireplace, tell yourself you dont care if you lose it all (and the extra in your wallet) and then toss it in the fireplace. When you realize it wasnt play money and your not happy about it, take an equal amount you def didnt want to lose and throw it in the fire.

    That is the best synopsis and education you can get.
    That is really funny. I guess I just know two things about myself:

    1. I am not that smart.

    2. I should not gamble because I could get addicted.

    I have not gambled much but the variable reinforcement / variable reward is dangerous for me.

    Variable reinforcement has hooked me on fishing.
    Salt water fishing is like a slot machine. Yesterday I was kayak fishing and out of nowhere I hooked a very large cod. Huge. Not expected. I had to release it (not allowed to keep) but I was in an area that should not have held such a fish.

    Later same trip a pod of hundreds of dolphins show up and they are chasing bait and splashing chaos all around me (never seen before, astonishing) (I did not have a phone/camera, but it was insane, never seen that many).

    I guess my point is, I am somewhat addicted to the slot machine nature of the experience. Seeing strange stuff. Fish, whales, dolphin, seals, sharks......sometimes hooking something never before seen by me......

    Anyway, I won't try drugs, or serious gambling........I don't want to know what if feels like to get high or win......

    I guess the one difference with fishing is if I go kayak fishing and just get some exercise and nothing else it is still a win.

    I think losing $ would make me so sick that I would hate it.

    Also, I realize (#1 above) I am not that smart and if I did ok trading options it would likely be more dependent on luck than skill.

    Just staying uptodate in medicine is enough for me. Learning to trade options? Not for me.
    Last edited by Tangler; 08-05-2022, 08:40 AM.

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  • Nysoz
    replied
    There's a lot of factors to determine if it's truly pennies in front of a steam roller or not. Also all the pennies add up over time.

    If I exited all my covered call positions on TSLA, I'd have made around $350k in premium YTD. It's a shame that I've lost more than that using margin though lol. Risk/option management is definitely a valuable skill to learn early on.

    Going forward, I'm staying away from too much risk, leverage and having more realistic expectations.

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  • Panscan
    replied
    Originally posted by Craigslist View Post
    I've made 17k this year just doing Covered calls and cash secured puts.
    Pennies in front of a steamroller. Sure you’re risking a lot of cash or shares/value to do it

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  • Craigslist
    replied
    I've made 17k this year just doing Covered calls and cash secured puts.

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  • Mad Dog
    replied
    We have a free Discord trading group, if anyone is interested. It is a blast. Educational and rewarding.

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  • Mad Dog
    replied
    I trade a lot of options daily, but I am not a day trader. Most have been bear trades and have been nice winners considering the current environment. I expect this trend to continue for a while. I am a member of a trading group where we discuss and post our trades. Then after the market closes, I have a couple of hours to take a quick nap, shower, and get ready to start my evening radiology shift. It all adds up to a busy day ! On the weekend, I tally up my results for the week. I then donate a small amount of the wins to losing positions to expedite the position turning green. Then with the balance in the following week, I will buy shares in those lovely dividend stocks/ETF's that keep paying and paying for many years to come !
    Last edited by Mad Dog; 07-04-2022, 09:15 AM.

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  • The White Coat Investor
    replied
    My first investment was an option. It was $500 of my Alaska Permanent Dividend Fund money and I must have been something like 12. Some coworker of my dad's talked him into and he talked me into it. We both lost 100% of our money. I haven't bought an option since. And now I'm rich. So I guess I didn't need options to get rich. And I now manage my dad's investments for him.

    If you'd like to get rich, options aren't the pathway I recommend. Doesn't mean it can't work, but I think there's a far more reliable pathway for the folks who show up on this website.

    Leave a comment:


  • Max Power
    replied
    There are so many options resources from free ebooks to YT to brokerage videos, etc.

    You don't need to do any of the 'advanced' stuff to make good money. You DO have to have large blocks of stocks 100+ of GOOG (until it splits) or AMZN or TSLA or SPY or VOO or QQQ or BRKB or even VTI or BABA or BX or etc is not very easy for most people (due to limited funds and/or uneasy having so much in single stocks). If you are just going to play around in a small account, a lot of stocks and ETFs will be somewhat off limit. The indexes are fairly boring for options outside maybe SPY and QQQ.

    Covered calls = typically smart, minimal time
    Covered puts = ok if you have a lot of cash (basically like placing limit orders but getting paid for it)
    Buying calls = greedy and time-intensive
    Buying puts = similar to shorting

    TastyTrade above is not bad... they probably still have YT vids on options, calls, puts, etc (as do many good channels) if you want to bypass all the making an account and spam and etc on their website. They originally started YT free simple whiteboard content (now apparently trying to monetize it).

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  • Craigslist
    replied
    Originally posted by Mad Dog View Post
    Love trading options all day as I work at night. Been trading for years.
    not sure if srs

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  • xraygoggles
    replied
    Originally posted by Mad Dog View Post
    Love trading options all day as I work at night. Been trading for years.
    U serious bro?

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  • Mad Dog
    replied
    Love trading options all day as I work at night. Been trading for years.

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  • Brains428
    replied
    The margin loans on etrade have to be with accounts that are solely buy and hold stocks with cash. So, no trading options with that account. You can take out .6 the value of long term equities and a 1:1 value of the cash in the account. Interest rates are dependent on the size of the account (more money, lower interest rate).

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  • Zaphod
    replied
    Originally posted by auggie1983 View Post
    How do the grow borrow die folks or those approaching retirement without future contributions coming in do it then? If your equity portion keeps growing, eventually that will skew your AA? Is pay taxes the only answer? Buy inverse etf?
    You borrow against those assets with margin loans, they pay themselves back and you never sell

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  • Nysoz
    replied
    The buy/grow borrow die people usually have outsized allocations and enough to handle any significant downturns.

    I don’t think they’re buying or selling to rebalance their aa but I may be wrong. Even then they could just borrow more to buy to rebalance as their returns outpace margin rates.

    Leave a comment:

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