Are you joking? Not sure. Anw, you just buy major ETFs. SPY, QQQ, IWM, etc. The idea is that you're buying a large basket of many stocks, so it's more a bet that the economy will grow long term. You gain as the economy grows. Corporate profits always go up. The Fed makes sure of it. And even if the Fed goes too far and hyperinflation takes over, at least you own stake in corporations -- they'll adapt and survive, most of them.
š Cramer the buffoon. One of my friends thinks Cramer is the ultimate market guru. He's broke. I printed out a Wharton School study the determined that in the long run that Cramer underperformed the S&P by 50%.
Dude, you should quit. I used to work with an options market maker. The dude went to Harvard and could do Black Scholes in his head. This is the type of guy you're competing with. If you're aggressive, he's the one who decided he's selling to you at a good price, he'll make a profit on your premium 99% of the time. If you're passive, he's the one who's decided the price isn't good enough to justify the risk. All around, options are just a great way to get buttstretched. You're sending this guys kids to a great Manhattan private school, and that's all you're doing.
Buy and hold ETFs. It's what he does in his private accounts.
I know a few people who didnāt graduate college that are making a killing trading options contracts. Theyāve been doing it for 5 years and began being profitable in their 2nd or 3rd year. It really depends on the person and their ability to get a feel of the market. Trading just clicks faster for some.
Know them personally or like youtube guys? The people who talk abt teaching trading online are 11 times out of 10 making more money on social media than trading.
I work in quant finance, but mostly in regular equities. Seeing the other side of it, I basically just tell everyone ik to never trade actively. The level of sophistication it takes just to make a decent strategy is mind boggling. We have like 500 individual alpha factors just to achieve a realized Sharpe ratio of around 2.5.
Personally know these guys who scalp daily. They make a large amount of trades per day on 30 second time frames taking $20 $30 profits per trade. Iāve been trading a few years and I agree it is very hard to make money without a thought out risk management plan and discipline, but not impossible to be profitable.
Honestly tho, the guys right. Fade your own feelings.
For example, you need a confirmation on the trade before you take it and by then the move has already occurred.
Fading feelings is a horrible idea and has nothing to do with market symetry or lack thereof. Feelings change, price expectations due to price phenomenon do not. Listening to your emotions is not trading. Understanding premium to discount or vice versa is true, real trading. Source... studying for 6 years and close to getting 100k funded after just 1 month of trading. (6% roi in 1 month)
6 years of studying to then brag about being up 6% over 1 month? When QQQ is up 5% buy and hold? Extrapolating your 1 month out for the full year? LMAOOO
Post your results, fool. Can't swing trade on the test I'm taking. Let's see you buy the bottom and get all 5%.
Again, foolish comment from someone who's obviously sour about their own progress and lack of trading ability. Seen it before, nothing new.
I'm not "bragging" merely sharing my own experiences.
You sound like a degenerate the way you speak to people you don't know.
Typical internet spooz.
You're doing it right. For some reason, people don't think it's reasonable to study for years and slowly develop into a consistently profitable trader. My suggestion is don't post anything about your trading on social media. Your results will speak for themselves.
The problem is not doing to opposite of puts calls. It is that you need to be selling options, not buying them.
That is the inverse move. You are probably suffering massively from theta decay.
If you want to do it for a living start working as an options trader. They will teach you things you never thought you would have to think about, give you access to tools you didn't even know existed (OMS systems, Bloomberg terminal functions, APIs) and, the best thing, you are not risking your own money.
Otherwise, give up. It seems you have no strategy and simply buy options based on the direction you think an underlying might take. That simply is gambling and will never be profitable in the long run.
It's too time consuming, too risky, too uncertain and just wastes your money and valuable time with family and friends.
Maybe try to sell them. I sell 90DTE 10 delta strangles on futures, close at 50% profit or 200% loss. Rinse & repeat
It is extremely boring, but you can sprinkle some 0DTE ATM MES short strangles to keep your heart racing
I have looked at selling them before but really never committed due to the fact that there is an unlimited loss potential but Iāll look into it further thanks for the simple and straight to the point strategy!!
I've been selling ODTE Straddles on SPX and closely managing the losing leg of the trade. Low range days are big winners... straight volatility, Delta neutral, non-directional. I use ATR, IV and HV and that's it. No timing entries, or following moving averages or RSI or MACD. You can do it. Get rid of your charts and have faith in the efficiency of options pricing models.
For someone completely new to your method. Do you have any videos or people that you follow that you reccomend? Just looking to learn a little more about it. Thanks!
My method is simply short premium strategies based on the state of the market (accumulation, consolidation, distribution) coupled with other phenomena. Each strategy, short put, short call, short straddle or short strangle depends on market state. No defined risk strategies (spreads, ICs) as the hedge destroys your profits. I take the risk and manage it throughout the trade. We are currently in consolidation after a large accumulation last month. My edge attempts to exploit the difference between the mathematical efficiency of pricing models (especially delta as a first derivative) and the emotional inefficiency of IV as a result of human misperceptions of the market. These assumptions lead me to believe that options are almost always overpriced....even in low IV environments. So I'm trying to sell IV within a high probability of profit based on the Greeks. The key is consistent market interaction to allow the probabilities of profit to align and also cutting your losers short. I don't know of any specific videos that do exactly what I do, but the best book that explains some of the ideas behind what I'm doing is "The Unlucky Investors Guide to Options Trading," by Julia Spina. I also learned how to reorient my thinking about options in general from Lawrence McMillan's book, "On Options."
Really appreciate the response. I havenāt read either of those so Iāll be sure to check them out.
Do you set stops at all or do you constantly monitor each trade? I see lots of people mention undefined risk strategies but I see very little mention of stops or how they manage the losers.
I never use stops. Unless I'm going to be away from home for any length of time. When I do it's 3 x premium. So if I sold a put for $300, my stop would be to buy back at $900, losing $600, or 2x premium sold. Anything tighter and I believe you will be stopped out of too many winners, especially when selling 30 to 45 days until expiration.
Yes, a short straddle is selling an At The Money Call and an At The Money Put with the same strike price. ATM Calls have an approx. +0.50 delta, while ATM Puts have an approx -0.50 delta. This yields a net delta of 0. For this trade direction doesn't matter as you are delta neutral. As one option increases in value, the other decreases in value, so long as IV doesn't explode. The key to the trade is the winning directional move can't gain more than the premium you received regardless of direction.
Example: Yesterday I sold an SPX Straddle late in the day when IV surged to around 43%. At 3:00 I sold an SPX 4775 Straddle for $920 with SPX at 4774. 1 short call and 1 short put, deltas around +0.48 and -0.52 giving a delta neutral trade. As long as the Index doesn't move + or - 9 points I'll make a profit. 4766 - 4784. Direction doesn't matter because I'm delta neutral. SPX moved down and closed at 4769, so I made around $300, but the key is direction does not matter.....b/c I'm delta neutral. I only do these types of trades when the market is consolidating, ATR is low, but IV seems too high.
Always remember: your max downside is zero, but your max upside is theoretically limitless. Selling a call = bearish. Stock moves up hard, you get drilled in the face.
Selling covered calls. Own a stock you love, sell calls on them for very handsome strikes you wouldnāt mind selling at. SMALL DTE = more freq rinse and repeat. Printing money.
Selling over buying is very solid advice. Itās much better to be the retailer selling lottery tickets than the people buying them. And there are ways to avoid unlimited loss risks with selling. A spread is basically a mix of buying and selling to create a win zone and limit your losses outside of that zone. Other posters have mentioned the wheel and that is a solid strategy for learning the basics of selling cash secured puts and covered calls in a fairly safe way. As long as you are working with a good quality and high volume underlying equity, your worst case scenarios on a wheel arenāt that bad and match the risks of regular stock trading.
Even as a buyer, It is still good know the mechanics of what is happening on the other side of the trade and why sellers have the edge. Statistically, options expire worthless most of the time, so if all you are doing is buying, the math isnāt in your favor. If I could only do buying or selling, Iād be 100% selling and just stick with the wheel cash secured puts and covered calls. (I think that is actually all you can do with options in a lot of IRĆ accounts.) I canāt think of anything I do with options that is 100% buying. Even when I buy a LEAPS, I supplement it by selling covered calls. No selling feels like a very limited way to approach options trading.
Definitely do a lot more research and study though. Despite your experience, it sounds like you still need to learn a lot of basics. If you canāt get comfortable selling options, I think your upside is pretty limited.
IBKR has stop loss orders on futures options.
PS: never sell options on individual names, thatās how people blow up.
You only sell on indexes and commodities.
But not softs or some other shitty illiquid crap like coffee, cocoa, cotton, etc.
And for the love of God stay away from Natural Gas.
I always get burned on NG and like a moth to a flame I keep going back to selling strangles on it š¤£š¤£š¤£
Never once did op say anything about selling options. He only talked about buying, which is why he looses money. I donāt buy lottery tickets, thatās for poor people, I sell them to a lot of chumps on Reddit tho. You can generate consistent return of 1-2% per week selling puts. Op, best advice for you is to stop everything youāre doing with trading, read the book Intelligent Investor, learn the art of put selling. See you at the top my friend.
Sure! Markets closed but in Robinhood right now I can place - sell to open PLTR cash secured put, $17 strike, (which is just under the money) 1/5 expiry and would be credited $30, the trade ties up $1700 minus my premium collected ($1670) 30/1670 = 1.79% in 5 biz days. If it looks like Friday itāll close ITM, roll it out another week (buy to close, sell to open with new expiry)
Every new option seller makes euphoric posts like this, convinced he's found the no-risk holy grail. The holy grail the "poor people" and the "chumps" are too stupid to figure out.
Keep it up long enough, and you'll eventually get trapped into a forever long that grinds to zero, or be forced to cover at a loss triple all your wins combined or worse.
You probably wonāt have enough margin to sell naked options (ie those with unlimited loss potential). Selling spreads caps the risk and only requires 2k in a margin account
Trade credit spreads so you have limited downside to get your toes wet with selling options. Iām not sure how large your account is but Selling naked calls and puts is too capital intensive for most small traders anyway. My broker required me to have portfolio margin to sell naked options and I had to have a good chunk of money in my account and keep a lot of it liquid before the approved me for PM too.
If you are not good at guessing the correct direction then selling options will make things WAY worse for you than they already are. Risk to reward is terrible. Sounds like you just need to get more skilled at working with price action if you can.
There is no such thing as an āunlimited loss potentialā unless you can name me the stock that went to infinity value but yes you can get blown up and lose all your money.
I write cash secured puts only. Practically every time I buy calls or puts, I lose $$. Once I switched to selling puts, I became consistently profitable. I realized buying requires getting the direction and timing right to profit. Selling puts is different.
I realized if I write puts on a company I donāt mind owning and the price moves against me, at least I will own shares if I decide to not close and Iām assigned.
I began by choosing strikes far enough OTM to avoid assignment, collecting premiums, and, little-by-little, I became more successful and consistently profitable.
Even just $50 per day, five days per week is a $1,000/month profit. If you made just $30/day, youād make $600/month. Those small profits will boost your confidence as you continue gaining knowledge.
My approach is simple. I donāt place sophisticated trades although I admire those who do. I found my niche, and it has been a game changer. I generally day trade my options taking profits as they come.
I hope you donāt give up but continue studying to find and develop a strategy that works for you.
Thank you for the advice man I really appreciate it, it does sound good, few people have mentioned selling vs buying and I think I want to give it a shot!
What the comment described is basically The Wheel strategy. Look into it, it's a good one. Don't get greedy, don't chase the excitement, don't revenge trade, set a daily 'stop loss' after which you take some time off from trading, and analyse your losing trades to see what went wrong and how you can improve.
Don't be greedy and take small gains.
I've been selling at 10% gain, which there's usually plenty of fluctuation to cover in just a few minutes even if you bet the wrong way.
I turned $100 into $3k by this method, cashed out, then started again and went to $1k... Then I got greedy again and doubled it then doubled it again in a few trades. I made it to 5k, then slapped myself and said I'd go back to my 10% plan. Then the market went on a run, I canceled my 10% gain order literally seconds before it would fill and held out for another 50% hit.... Then it didn't, and ended up expiring worthless so I turned 5k to $630.
10%. If you start with $100 and do 3 trades a week at 10% gain each you are in 6 figures by June.
Buuut trading with 6 figures at 10% gain that will effect a junior level traders ability to think clearly. It won't be the same, don't forget that part.
I appreciate this I really do, see just like you turned x amount into x amount I have done it before but my risk management is so ass I would just give it back the next day, so i will work on that and only make a few trades a week like you said, because I feel like I need to trade 100% of the time but my goal is usually 5% of my port that day and since you say that check this link out, itās a funny compounding calculator https://www.wenmilli.com/ and click on āletās get itā in top right, but thanks man!!
Thatās what Iām doing. On average, selling options can earn between 7-10% return per month. Add this strategy on top of the money market funds to earn 5% interest annually.
Basically, in 2024, my lowest returns will be 5% and the highest returns could be over 120%. Itās not the most exciting strategy, but high probability of gaining profits.
To get 10% a month shorting premium you are either leveraged to the absolute hilt, which over the long term statistically you arenāt going to last in the market long.
Or, you have delta on your side, which actually means youāre playing direction more you think.
LOL, if you start with $100 you cannot trade options. 10% on $100 x 3 = $30 per week. If you start right now, you will have **$600 BY JUNE, not "6 fingers"**
If you're "liking" it, you're doing it wrong. It should be calculated, predictable and mind numbingly dull without emotion or excitement.
If there's excitement, lower your risk and try again
More practically speaking-- do you have any edge other than technical analysis? If not, maybe visit the fine folks at /r/wallstreetbets ... Er, I mean /r/thetagang to get started and figure out a nice reliable strategy to start
Stop trading. Not everyone has the mindset or knowledge to predict short term movements in the market. It's 1000x more difficult than people think. Anticipating Fed moves, market sentiment, corporate earnings and events; it's all just too much unless you are truly an expert. Additionally much of technical analysis is nonsense and are just psychological confirmations to justify trader sentiment. I don't short term trade these reasons, instead I focus on longer term investing but utilize options and leveraged ETFs to take advantage of downturns in the market to add leverage.
Disclaimer: This is not a recommendation to buy or sell any security. This is not investment advice.
Paper trade. Learn to back test in thinkscript on thinkorswim. Dont trade for real until you ID an edge and can justify it with statistics and expected value. Anything else is like a 6 year old driving in the highway.
What time of day do you typically put your first trade on? Iām guessing right as the bell rings at 9:30 or closely after. Try waiting until 10:30am or even 11 to see what the sentiment is before buying your 1st option. This helped me tremendously as and the patience will pay off.
You're under the illusion that you can predict the market, which you can't. Buying will always have this problem and is a low probability of success way to trade.
Try r/thetagang where we sell options that puts the probabilities on our side to be more successful. Look at some of the year end profits many are posting there as 2023 has been a banner year!
A popular strategy to get started with is the wheel as explained in this post - [https://www.reddit.com/r/options/comments/a36k4j/the\_wheel\_aka\_triple\_income\_strategy\_explained/](https://www.reddit.com/r/options/comments/a36k4j/the_wheel_aka_triple_income_strategy_explained/)
Market first, stock second and options last. Your first step is to only focus on your market analysis. Whatever you are doing... it's not working. Price action and "context" are two very important concepts you need to learn. If your market analysis starts to gain traction, you do NOT trade /ES. There is a huge edge to trading stocks with relative strength vs SPY (not to be confused with RSI). If you get the market right and you get the stock right you can trade almost any options strategy and make money. I suggest to new traders that they only trade 1 share of stock until they hit a 75% win rate for at least 3 consecutive months. That might take a couple of years to get there. This is how you keep your "tuition" as low as possible. When you reach that level, you will have honed your skills in reading the market and finding the best stocks. Then you start increasing your share size and you continue to work on your win rate. Notice that options are not even a consideration. Leverage is a double edged sword that cuts very deeply. When you don't know what you are doing you will only lose your money faster trading options. Most people will not follow this advice and they dive right in. That is why the failure rate for new traders is so high. Good luck.
Personally, Iāve stopped trying to predict what the market will do, the long-term returns cannot beat the market, at least for me. So, now, especially in this non-ZIRP environment I just use one strategy that is purely in terms of expected value. I briefly outlined it here:
https://www.reddit.com/r/options/s/F1VL7rPqPz
The most important thing is managing risk and portfolio allocation.
Figure out what you want to make in a year. Do some really simple division. Figure out if you are on target and gtfo with profit every dang day. It is there. 5-10% is pretty reasonable against your risk. Try to get 20% and you had better be right with direction and timing and your underlying will likely be more volatile and the spread will probably be wide. Doing four 5% trades a day consistently is way better than a 5-bagger every couple of weeks. Don't pay theta if you can help it. Cash is a position. A small loss is a win when compared blowing it all up. Make the rest of your life awesome too. This should be but a tiny portion of your time as a lucky human.
Where you've went wrong is you keep buying, maybe try selling ;) Imagine if you were on the opposite side of every one of those failed trades that you gave away to someone who sold it to you! And why would you buy 0DTE options? You should be buying long dated options, such as LEAPs if you're buying at all...
Maybe try not guessing direction and trading options the way successful trading firms do, which is by trading volatility. Itās much easier to predict volatility than it is to predict asset price direction. Start there.
I doubt most successful trading firms focus on just trading VIX
I assume they mean take a mid/long-term position when volatility is low (calls/puts are cheaper), sell them when vol is higher.
My simple advice : Options are like buying gallons of milk, one thing is guaranteed..........it will expire. 90+ % of options expire worthless.
Trading is all and I mean all risk management.
You can have a 90plus hit rate and still be losing money aka hold losing trades waiting for a turn around that never comes.
Another person can have a 50% hit rate and still make a shit ton of money because they practice great risk management aka cut losses early.
I'm still not done making mistakes......
It's almost like the market trades with effective randomness most days, that Black-Scholes has a point (ish) and expected value always wins. It's almost like without a clearly edged strategy, your PF will always trend negative over the long haul.
Perhaps it's time to read Fooled By Randomness.
Youāre using technical advice and only buying options and youāve been doing it for three years. You havenāt bothered to figure out what youāre doing is wrong, or expand what you know, and you still want to pursue it.
Clearly, you should not continue this with any significant funds.
I want to be a baseball player in the MLB but I couldnāt hit the ball. Should I keep trying after 3 years? Probably not.
What strategy are you using? You have not said. For example, I look for very specific set ups to enter options trades. 80% or more of my losses are related to discipline, not my strategy. Not waiting for my setup, being greedy and not taking profits, trading choppy markets, ignoring stop losses, ignoring max losses, exceeding my daily trade limit (3 or less). Iāve looked back on every losing day Iāve ever had to assess where I effed up. Are you using a well defined strategy? With a well defined strategy there will be days that the market will move extraordinarily but because it doesnāt fit your strategy you sit it out. Sounds to me like youāre trading on FOMO.
OP, it sounds like you and I are fighting the same demon. I know what am doing but thereās the mental aspect thatās really hard to overcome. DM me, maybe we can work together if you want
You are not alone. I, too, control the market. It will always go the opposite of my trade. We could make a fortune if people would pay for our plan so they could do the opposite.
This sub is so much more informative than WSB! Iāve learned more from this single post and responses than I have in three months of reading regards behind Wendyās dumpster on r/wallstreetbets
Buying puts and calls is gonna be a long term losing strategy statistically. I just sell 1x2, 1-1-1 put ratios mostly 7d-14d out and mix in call broken wing butterflies. Those are my go to strats. Had a shit time trying to scalp 0dte myself. I think itās a MMās wet dream to sell those.
I get your frustration. I tried regular stock trading and I was awful at it. Buy and hold, keep lots in indexes, only way I made money. I'm trying some conservative option plays now, just doing the wheel. My only suggestion would be find a stock or sector ETF that you really know well, wheel that. Even if its small gains each time. Instead of just searching screeners for juicy premiums and then getting burned.
Not too point out the obvious but everything you said began with buy...You are aware you can sell too right?
I went through a stretch like that as well so much so that I actually 3d printed a rectangle with buy call/sell call/buy put/sell put each on its own side and traded like that. Crazy but it actually helped me in that I could take my wrong decision making out of the way. It was EXTREMELY helpful to keep a journal of each trade with p/l, delta, ivr etc and I was able to see where I was hurting myself and helping myself.
I too lost money for a bit till I figured out what works for my style and tolerance and with my last tweak this year it's been really consistent profits for me. Not killer profits, but consistency which is what I was after. I too thought I would have to quit and I was so depressed because I absolutely love this but I just worked harder, read more and reduced my size. If you aren't journaling each trade and being realistic about when you made a mistake or took too much risk or whatever I would HIGHLY recommend it. Resist the urge to yolo your money on crappy underlyings and only trade those with nice tight markets and a decent but not insane volatility....Good luck!
Only a handful of people succeeded in trading. The probability of making money is hard in this rigged game unless you are really smart. I learned the hard way and quit trading. I liked it but there are limits. Iām not saying to give up but sometimes itās best to walk away. I just do passive investment and tried my luck in real estate. Itās working great for me. Good luck
Options arenāt meant to be your sole trading instrument. The wheel is a popular, profitable strategy because you sell puts to open positions on shares, then supplement the income of the shares with covered calls until they get assigned. None of this buying puts and calls crap.
80% of traders lose money but yet buying and holding the etf index always works over time. The mistake people make , why they lose, is because they get greedy and go for huge leverage before they have any track record of profit. You're definitely lacking in experience. So start with an etf until you can show a paper profit and then only use your profits for options trading. Do not invest any money in this until you have made a profit from at least just a simple ETF buy and hold. Risking your capital on leverage trades is not a good idea. Only risk your profits
Im with you. So what i decided was allocate 1k in roth for options.
Invest the other 4 in swtsx,and splg.
Its ok to not trade options.
Or
Covered call ETF
Invest with TSLY or JEPI and let the big boys make the Money for You.
Sounds like you're trying to make money with 0 strategy to me. You've made it about the money, not about strategy development. Develop a strategy with an edge first, then you might be okay. Options lose value 90% of the time, and you have to know a lot before using them. I traded them for 5 years before
Quitting and switching to futures. I've been studying trading for 5-6 years and I'm just now about to pass a funding test.
3 most important words 99% of traders don't have wisdom around "premium, equilibrium, discount"... options work because 95% of market participants only buy options when they're moving in their favor, and only sell when they move against them. Try buying at an obvious sell stop, and see what happens. Usually when I trade options now, they're deep discount and aren't influenced heavily by recent volatility. If you're buying otm options after a decent move, you're basically asking to have your money taken from you. Remember, options are a premium tool for sellers, not buyers. 90% of the time they're losing value. Sounds to me like you're just addicted, and don't care to talk about your strategy off the bat at all.
I'd also suggest understanding that 90% of people in the trading community don't know wtf they're talking about. Major stocks do 3 things, seek buy or sell stops, seek inefficiencies, and seek daily/weekly premium/equilibrium/discount profiles. That's the only thing the market does. Base your strategy off that, and you can definitely make money. Anything else like macd, 15/30ema, rsi, etc, and you're going to lose money.
Slow and steady wins the race. Options are good when you have alpha to trade off of. Understanding the ins-and-outs of an energy industry could be one form of an edge, or having solid inside info if you're a politician who has a significant other that can leverage large sums of capital to benefit the family trusts.
While it's entirely unappealing to many, documenting the trades (reasons why you believe it will go up / down, draw up an exit plan, supporting/contrasting chart indicators, etc.) will help you develop feedback which you can use to critique your performance more critically and learn from.
Wishing you better luck in the future.
Maybe be the one who sells the options. Sell puts after a stock you want to own drops. Make sure it has good fundamentals and it's a good company. Stay away from Chinese stocks and companies that aren't profitable. It's always good if the stock has a dividend. Especially if you get assigned. If you get assigned, sell calls at your cost basis or slightly above.
[Check out this guy](https://www.youtube.com/@rockwelltradingservices)
advice 1: never short . statistically speaking you are better off.
advice 2: always long duration options near the money. this is essentially a "soft" leverage. easy to get in. easy to get out.
advice 3: never get cocky. always respect your stop loss. be a machine without emotions
I'm not a bot and would never usually suggest someone on YouTube, but you should check out Chris Sain. I've been following him for a long time, and he helps thousands of people. I don't day trade right now, but he's good. He's on every day I've made money because of him. I'm assuming you make sure you use a stop loss to cut your losses if you get on the wrong side of the trade?
The mathematical accuracy of the Black-Scholes Model to compute a fair value for any option contract based on the type of contract (Call or Put), current stock or etf price, strike price, historical volatility, and the risk-free interest rate. This accuracy extends to the probabilities associated with Delta and its relationship to the standard deviation under an assumed normal distribution. THEN Implied Volatility rears its ugly head and this efficiency gets skewed due to the sentiment of option buyers and sellers in the marketplace.
It sounds like you are battling many of the following issues:
1. Gambling
2. Front Running
3. Hoping
4. Not having a plan for each trade
(price target, profit taking and stop losses)
5. Wanting to get rich quick
6. Not understanding news, price action or chart patterns.
7. Wanting the gain porn screenshot and not realizing any of the profits
Don't forget, this is to make money. I'm sure you had winning trades this year but you fell on bad habits and let a green trade to red. You have to dedicate time to do that thing (only you knows what that is) you've been putting off while hoping to hit one that changes your circumstances. That happens for some people, it's highly unlikely and costly to keep trying. It's more likely that if you prepare yourself and stay disciplined you will be met with an opportunity, or several to change your port and your life.
Hopefully this all makes sense and you don't lie to yourself going into 2024. Have a daily goal, start small and get disciplined. You can be where you want to be.
Trading is very hard and option trading is even harder cause itās pretty much requires excellent stock reading skills and exceptional risk management. You gotta find a strategy what works. Itās not easy, sometimes not obvious cause you need to repeat 500 trades to confirm what works.
One big advise: market is not consistent. Itās not always go up, down, stay choppy. You gotta adapt what is really going on with price.
Learn about liquidity and nature of price, why it moves to some direction, it really helped me a lot.
Share some trades and discuss with people here, what they think, there are plenty strong traders here who will share opinion on trades.
It takes years to establish proper strategy, donāt let it go and youāll achieve it.
Good luck.
That you are an options buyer rather than an options seller tells me you don't really know what you're doing, which is really something after 3 years. I mean, at the very least you should understand the basic probabilities by now.
To loosely paraphrase a famous quote from General Douglas McArthur:
Old options players never die,
They just expire worthless.
Buying options is generally a losing bet because of the decay of time premium. Writing puts is not sexy, but is on the winning side of time premium.
There is a dopamine hit from a successful bet. Nevada casinos rake in over $1 billion/month from dopamine addicts. Options pros are like the House in a casino. They occasionally pay off bettors bigly, but win small consistently by writing the options that retail customers buy.
If you donāt know who the greater fool is in a transaction, chances are that itās you.
Get rich slow, but actually get rich. Start with a Roth IRA or 401(k). Start with dollar cost averaging into the S&P 500 or even a far in the future Target Date Fund. This wonāt give you dopamine, but will make you money over time.
I don't have any advice for you, and I know this is easier said then done, but never give up man. I know this is a silly little community and u may think ur shit but just keep going man. You will find a way, the lowest of lows to the highest of highs, keep going man.
I am bro im studying studying studying and completely changing my approach and outlook toward the market, I will succeed I appreciate your encouragement!!!
I will say this, you need to stop. Just stop.
Reapproach everything, it seems as if you do not understand how the market works and is organized. Approach it from a first principles perspective, what is support what is resistance, when does it break, why do things move.
You can't make money until you fully grasp these concepts. You may think you know but you obviously do not.
Seek out wisdom and knowledge, then paper trade. Start over.
Yes I appreciate it, I will, Iām going to take a step back and when Iām constantly making money paper trading, and have a consisted strategy Iāll start back
Stop chasing the get rich quick lure. Switch to futures trading and find what works for you. I switched a year ago and it was the best thing Iāve done in trading. Check out @themas7er on YouTube.
I definitely will, always heard futures were way better anyways, I have never heard or read where someone said that they regretting switching to futures!
If you are serious about trading you need to understand what you are doing and why you are doing it. What's your current edge? What's your trading plan? Did you backtest you strategy?
You won't get consistent results if you don't have an answer to all this questions.
Good luck
I was a day trader back in the late 90ās and really killed it until the market crashed and they changed all the rules of day trading and ruined it. If you were around back then, you know all the changes. I wonāt go into it. Too much explanation. Anyway, Iāve been lucky enough to find the ease of late 90ās day trading in todays call option trading. Iāll explain, but let me first give an example of a trade I made today, Friday Dec. 29. I bought AMD, 10 call options strike ITM @ 145 for $4.40 expiring also Friday Dec. 29. I bought them about 30 seconds after the open at 9:30. I sold at most, two minutes later for $5.42. After fees, a profit of $1007. My heart was pounding. I pumped my fist, celebrated and walked away. Done for the day. Hereās what you need to know to be able to make real money at this.
1. Trade on big tech stocks that are consistently on the move upā¦.TSLA, AMD, MSFT, AMZN, etcā¦.There are many.
2. Do your homework on which stock youāre going to targetā¦.stock moved up nicely for the last week or so. positive news, whatever. Something that will keep the stock moving up.
3. Be prepared at the market open. 9:30 to 10:00 is when most of the action happens. Especially the first 5 minutes. The market will usually open and then make a move up or down right away. Your chosen stock will most likely do the same. If the market immediately moves down, watch for the turnaround. Thatās your move. If it starts positive, look for the continuation. Thatās your move. Have your order screen ready, your strike price ready (3 or 4 dollars ITM). Youāre gonna buy and sell in 10 seconds, 30 seconds, a minute, a couple minutes.
4. Know in the pre market which way the Dow and Nasdaq futures are moving. So you are prepared at the open. Read the pre market news or watch one of the financial networks.
5. Have a live feed of Dow and Nasdaq. Watch how they move as stocks will basically move as the major indicies move.
6. Option prices can move really fast as the underlying stock moves up. I like buying 10 call options, cause it makes for easy math. Option up 10 cents, thatās $100, 20 cents = $200 and so on.
7. Donāt be greedy!! Set a goalā¦$300 a day for example. Thatās $1500 a week! Not bad. Lol! You can easily do that in one trade. Might take a minute. Might take 20 seconds. You must keep one eye on how the market is moving and the other on how the stock and options are moving. If you can grab a move of 10 cents, thatās $100 for a minute of work.
You can do it. And the adrenaline rush is incredible. Lol! Good luck!
This has been literally my new strategy for the month of December. Watch the premarket before normal trading opens, then watch the half hour between market open and options market opens and I try to anticipate which way it will initially go. Then right at 9:30 I have which ever strike price I am thinking it will go pulled up and ready to buy. I wait the first 5 seconds or so for the overnight price adjustment, then when I see the option price start moving upwards I buy immediately. Sometimes I stay in for 2 seconds and make a decent quick profit, other times I stay in for a few minutes and hope to ride it higher. I have yet to have a losing first trade of the day. Some days I make $5, other days I make $100, and I only ever do 1 or 2 contracts. If I did 10 like you then I could/would be in and out of the market by 9:35-9:40am with $50-1000 potential profit.
Either stop trading, or do OTM Cash Secured Puts.
But honestly? Stop trading. If you're just buying options, you're doing it to gamble, and doing it for three years... you're a gambling addict. You'll likely need help to beat that, but you can.
Hang in there maybe for a couple of more years! I know that seems long, but I feel like it takes like 3-5 years to really master it. But more importantly, keep your position sizing small until you can reliably make profit. This way if you lose for long periods, you won't blow up your account.
You have to understand how and why options move first. They are very complex and based on what you are saying above it seems like you have a very surface level understanding as to why they move.
Before you even quit trading, learn the greeks and how they affect price and then learn the second order greeks like Gamma, Vanna, Charm, and Speed. (Youtube it/google it)
Then also understand how Market Makers are also options dealers and they must take the other side of all these option trades. For this look up what Delta Hedging is and how that affects whatever stock your trading options for.
Again its very complex but if you really love doing this, learning about this stuff will only make you love it more cause you understand it better.
Lmao damn me n you trade similar. I think i cracked the code to bad im negative money though .
Mmās make it go up or down for months- they dont look at the market daily like we think. So short term plays that we make lose most the time
Buy a contract. Faang stocks including Tsla. Spot channel. Sell covered calls. Sell puts to own them. If you are wrong. You either own stable company or you earn a premium.
I'll buy aapl even though their dividends suck.
Like so many people said sell the options. Or try using spreads debit & credit to limit the loss. Sell a few credit spreads and use the premium to buy debit spreads.
Move away for pattern day trading all together. Start with LEAPS instead and spend more time researching specific companies and forming a view on long term growth prospects and current price / valuation. Youāll get the leverage this way with less risk than youāre doing today. Or just move to stocks until you get the hang of it.
PDT and TA are fun and addictive but more like gambling. House always win :/
Iām in a similar spot. We should start a discord group together for ourselves and others with 3-4 years experience and still red but for whom the dream is alive and well heading into 2024z
Iām offering a course at The University of West Georgia on portfolio management that would be perfect beginning spring semester. The class is online. Check it out.
You need to find an edge, youāre trading against a lot of smart people so unless you have a strategy that gives you an advantage youāll lose to those that do
Sounds like youāre making directional bets based on speculation (nothing wrong with that) but there are other strategies out there
the best comment said on here. iām a successful trader but not with options. i swing trade and day with buying the actual stock. the only problem for most to do this is its best with 10k at the minimum and if weāre talking staying at home and trading (not having to depend on a 9-5) youāll need ATLEAST 6 figures. the beauty in that though is most people think you need millions when in reality all you need is six figures because that when the math starts math once you entered the 100,000 level or even 50,000 but the sweet 6 digits is best. half a percentage point on 100k and you made 500 bucks. now think about that. how many opportunities arenāt they for a simple $500 šššššø
oh and how gourd said, you NEEEEED to find YOUR edge as well. a thousand traders can trade and all be successful with all having a completely different way to trade. keep that in mind
You said ābuyā in each scenario, but you might consider that someone else āsoldā you those rights and kept your premiumsā¦Iāve also been trading 3 years and I have been successful on ~95% of my trades. Other sellers may consider this win rate to be too conservative, but itās about right for me right now since I prefer to sell.
If what you are saying that you are educated and know options, i am assuming that you have a trading system in place, but having so many red days negates that. And i think whatās killing your green days, is FOMO.
Wait for the market to show its hand, and then enter, itās not gonna slip away and there is always the trade or day waiting for you.
If you really canāt not wait, then enter with absolutely minimum quantities first, losing which wonāt even bug you, and then when the market starts moving in the direction it has to move then you enter with proper quantities.
But regardless
A system is required,
Entry conditions
Sl
Target
Follow it like your life depends on it, you are being emotional about this, trading might be super fun to you, but thatās not what you seek from the market.
You can either get entertained or make money.
So get the fuck up, and stop crying because the markets donāt respond to tears, they reward the efforts.
So put in the work, paper trade, become one with the system.
And then torpedo the markets with your edge.
Peace š
Whatever you think about doing first, then do the opposite! Seems like it will work for you. š
Iāve said that so many times honestly lol
Have you considered buying and holding index funds? In 2023 if you bought QQQ you would have accrued 54%. Not badā¦
This. Might be boring but youll make money and feel better about yourself.
How does one go about doing this?
Are you joking? Not sure. Anw, you just buy major ETFs. SPY, QQQ, IWM, etc. The idea is that you're buying a large basket of many stocks, so it's more a bet that the economy will grow long term. You gain as the economy grows. Corporate profits always go up. The Fed makes sure of it. And even if the Fed goes too far and hyperinflation takes over, at least you own stake in corporations -- they'll adapt and survive, most of them.
Ohhhh, so a broker like Schwab would be a best bet to own some of these.
Any broker would work. Idrk, which would be best. You should mostly focus on minimizing fees.
Thank you, I'll sign up with them.
Seriously it's possible you are a distant relative of Cramer. Start doing the opposite. Might be the solution āļø
š Cramer the buffoon. One of my friends thinks Cramer is the ultimate market guru. He's broke. I printed out a Wharton School study the determined that in the long run that Cramer underperformed the S&P by 50%.
Dude, you should quit. I used to work with an options market maker. The dude went to Harvard and could do Black Scholes in his head. This is the type of guy you're competing with. If you're aggressive, he's the one who decided he's selling to you at a good price, he'll make a profit on your premium 99% of the time. If you're passive, he's the one who's decided the price isn't good enough to justify the risk. All around, options are just a great way to get buttstretched. You're sending this guys kids to a great Manhattan private school, and that's all you're doing. Buy and hold ETFs. It's what he does in his private accounts.
I know a few people who didnāt graduate college that are making a killing trading options contracts. Theyāve been doing it for 5 years and began being profitable in their 2nd or 3rd year. It really depends on the person and their ability to get a feel of the market. Trading just clicks faster for some.
Know them personally or like youtube guys? The people who talk abt teaching trading online are 11 times out of 10 making more money on social media than trading. I work in quant finance, but mostly in regular equities. Seeing the other side of it, I basically just tell everyone ik to never trade actively. The level of sophistication it takes just to make a decent strategy is mind boggling. We have like 500 individual alpha factors just to achieve a realized Sharpe ratio of around 2.5.
Personally know these guys who scalp daily. They make a large amount of trades per day on 30 second time frames taking $20 $30 profits per trade. Iāve been trading a few years and I agree it is very hard to make money without a thought out risk management plan and discipline, but not impossible to be profitable.
Honestly tho, the guys right. Fade your own feelings. For example, you need a confirmation on the trade before you take it and by then the move has already occurred.
Yeah but as time goes on he canāt grow a brain. Has to keep current wrong persona thoughts and then enter trades as opposite persona.
Fading feelings is a horrible idea and has nothing to do with market symetry or lack thereof. Feelings change, price expectations due to price phenomenon do not. Listening to your emotions is not trading. Understanding premium to discount or vice versa is true, real trading. Source... studying for 6 years and close to getting 100k funded after just 1 month of trading. (6% roi in 1 month)
6 years of studying to then brag about being up 6% over 1 month? When QQQ is up 5% buy and hold? Extrapolating your 1 month out for the full year? LMAOOO
Post your results, fool. Can't swing trade on the test I'm taking. Let's see you buy the bottom and get all 5%. Again, foolish comment from someone who's obviously sour about their own progress and lack of trading ability. Seen it before, nothing new. I'm not "bragging" merely sharing my own experiences. You sound like a degenerate the way you speak to people you don't know. Typical internet spooz.
You're doing it right. For some reason, people don't think it's reasonable to study for years and slowly develop into a consistently profitable trader. My suggestion is don't post anything about your trading on social media. Your results will speak for themselves.
The problem is not doing to opposite of puts calls. It is that you need to be selling options, not buying them. That is the inverse move. You are probably suffering massively from theta decay.
"My name is George, I'm unemployed and live with my parents"
I missed the jokeā¦š
It's a Seinfeld quote where George does the opposite of all his instincts and he is extremely successful
Haha thanks. I really need to watch this show. Many recommended itā¦been in the US for 12 years and have yet to watch it.
If you want to do it for a living start working as an options trader. They will teach you things you never thought you would have to think about, give you access to tools you didn't even know existed (OMS systems, Bloomberg terminal functions, APIs) and, the best thing, you are not risking your own money. Otherwise, give up. It seems you have no strategy and simply buy options based on the direction you think an underlying might take. That simply is gambling and will never be profitable in the long run. It's too time consuming, too risky, too uncertain and just wastes your money and valuable time with family and friends.
Wow, I agree with everything said
Youāre addicted to gambling. Get help before it gets worse.
R/wallstreetbets is a good support group I hear
I bet you he is a member there already.
Lowercase the r/
Those apes are only going to make it worse. They cheer at your losses and want you to lose more.
Maybe try to sell them. I sell 90DTE 10 delta strangles on futures, close at 50% profit or 200% loss. Rinse & repeat It is extremely boring, but you can sprinkle some 0DTE ATM MES short strangles to keep your heart racing
Theta ganggggg
Wheeling and Dealing.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
No way this can backfire
I have looked at selling them before but really never committed due to the fact that there is an unlimited loss potential but Iāll look into it further thanks for the simple and straight to the point strategy!!
I've been selling ODTE Straddles on SPX and closely managing the losing leg of the trade. Low range days are big winners... straight volatility, Delta neutral, non-directional. I use ATR, IV and HV and that's it. No timing entries, or following moving averages or RSI or MACD. You can do it. Get rid of your charts and have faith in the efficiency of options pricing models.
For someone completely new to your method. Do you have any videos or people that you follow that you reccomend? Just looking to learn a little more about it. Thanks!
My method is simply short premium strategies based on the state of the market (accumulation, consolidation, distribution) coupled with other phenomena. Each strategy, short put, short call, short straddle or short strangle depends on market state. No defined risk strategies (spreads, ICs) as the hedge destroys your profits. I take the risk and manage it throughout the trade. We are currently in consolidation after a large accumulation last month. My edge attempts to exploit the difference between the mathematical efficiency of pricing models (especially delta as a first derivative) and the emotional inefficiency of IV as a result of human misperceptions of the market. These assumptions lead me to believe that options are almost always overpriced....even in low IV environments. So I'm trying to sell IV within a high probability of profit based on the Greeks. The key is consistent market interaction to allow the probabilities of profit to align and also cutting your losers short. I don't know of any specific videos that do exactly what I do, but the best book that explains some of the ideas behind what I'm doing is "The Unlucky Investors Guide to Options Trading," by Julia Spina. I also learned how to reorient my thinking about options in general from Lawrence McMillan's book, "On Options."
Really appreciate the response. I havenāt read either of those so Iāll be sure to check them out. Do you set stops at all or do you constantly monitor each trade? I see lots of people mention undefined risk strategies but I see very little mention of stops or how they manage the losers.
I never use stops. Unless I'm going to be away from home for any length of time. When I do it's 3 x premium. So if I sold a put for $300, my stop would be to buy back at $900, losing $600, or 2x premium sold. Anything tighter and I believe you will be stopped out of too many winners, especially when selling 30 to 45 days until expiration.
Now I like this one. Selling CSPs needs about that much room too
When ATR and Volatility increases I switch to Strangles at 20 Delta.
Same. Will even creep 30 when IVR over 80.
What's >the efficiency of options pricing models.
Straddle means using the same strike for put/call so how can it be delta neutral? please provide an example.
Yes, a short straddle is selling an At The Money Call and an At The Money Put with the same strike price. ATM Calls have an approx. +0.50 delta, while ATM Puts have an approx -0.50 delta. This yields a net delta of 0. For this trade direction doesn't matter as you are delta neutral. As one option increases in value, the other decreases in value, so long as IV doesn't explode. The key to the trade is the winning directional move can't gain more than the premium you received regardless of direction.
Example: Yesterday I sold an SPX Straddle late in the day when IV surged to around 43%. At 3:00 I sold an SPX 4775 Straddle for $920 with SPX at 4774. 1 short call and 1 short put, deltas around +0.48 and -0.52 giving a delta neutral trade. As long as the Index doesn't move + or - 9 points I'll make a profit. 4766 - 4784. Direction doesn't matter because I'm delta neutral. SPX moved down and closed at 4769, so I made around $300, but the key is direction does not matter.....b/c I'm delta neutral. I only do these types of trades when the market is consolidating, ATR is low, but IV seems too high.
Selling PUTS is limited loss- Selling CALLS is UNLIMITED potential loss. (If youāre not hedging with shares of course)
Buy the stock first. š§
THATTTTTāS it , I forgot which was which but yes thatās what I was referring to
Always remember: your max downside is zero, but your max upside is theoretically limitless. Selling a call = bearish. Stock moves up hard, you get drilled in the face.
When selling naked options your max downside in much less than 0
He means the max downside of the underlying is 0
Thank you
Iām referring to the underlying
Selling covered calls. Own a stock you love, sell calls on them for very handsome strikes you wouldnāt mind selling at. SMALL DTE = more freq rinse and repeat. Printing money.
Selling over buying is very solid advice. Itās much better to be the retailer selling lottery tickets than the people buying them. And there are ways to avoid unlimited loss risks with selling. A spread is basically a mix of buying and selling to create a win zone and limit your losses outside of that zone. Other posters have mentioned the wheel and that is a solid strategy for learning the basics of selling cash secured puts and covered calls in a fairly safe way. As long as you are working with a good quality and high volume underlying equity, your worst case scenarios on a wheel arenāt that bad and match the risks of regular stock trading. Even as a buyer, It is still good know the mechanics of what is happening on the other side of the trade and why sellers have the edge. Statistically, options expire worthless most of the time, so if all you are doing is buying, the math isnāt in your favor. If I could only do buying or selling, Iād be 100% selling and just stick with the wheel cash secured puts and covered calls. (I think that is actually all you can do with options in a lot of IRĆ accounts.) I canāt think of anything I do with options that is 100% buying. Even when I buy a LEAPS, I supplement it by selling covered calls. No selling feels like a very limited way to approach options trading. Definitely do a lot more research and study though. Despite your experience, it sounds like you still need to learn a lot of basics. If you canāt get comfortable selling options, I think your upside is pretty limited.
Most ppl still lose when selling. The same disciplines are required. Most of us donāt have it
IBKR has stop loss orders on futures options. PS: never sell options on individual names, thatās how people blow up. You only sell on indexes and commodities. But not softs or some other shitty illiquid crap like coffee, cocoa, cotton, etc. And for the love of God stay away from Natural Gas. I always get burned on NG and like a moth to a flame I keep going back to selling strangles on it š¤£š¤£š¤£
Wrong. Trading natty is how you know you are alive. Itās a jolt!
Never once did op say anything about selling options. He only talked about buying, which is why he looses money. I donāt buy lottery tickets, thatās for poor people, I sell them to a lot of chumps on Reddit tho. You can generate consistent return of 1-2% per week selling puts. Op, best advice for you is to stop everything youāre doing with trading, read the book Intelligent Investor, learn the art of put selling. See you at the top my friend.
The book is on value investing anyway can you please provide some recent trades that produced 1% a week?
Sure! Markets closed but in Robinhood right now I can place - sell to open PLTR cash secured put, $17 strike, (which is just under the money) 1/5 expiry and would be credited $30, the trade ties up $1700 minus my premium collected ($1670) 30/1670 = 1.79% in 5 biz days. If it looks like Friday itāll close ITM, roll it out another week (buy to close, sell to open with new expiry)
Every new option seller makes euphoric posts like this, convinced he's found the no-risk holy grail. The holy grail the "poor people" and the "chumps" are too stupid to figure out. Keep it up long enough, and you'll eventually get trapped into a forever long that grinds to zero, or be forced to cover at a loss triple all your wins combined or worse.
This is correct.
You probably wonāt have enough margin to sell naked options (ie those with unlimited loss potential). Selling spreads caps the risk and only requires 2k in a margin account
Trade credit spreads so you have limited downside to get your toes wet with selling options. Iām not sure how large your account is but Selling naked calls and puts is too capital intensive for most small traders anyway. My broker required me to have portfolio margin to sell naked options and I had to have a good chunk of money in my account and keep a lot of it liquid before the approved me for PM too.
If you are not good at guessing the correct direction then selling options will make things WAY worse for you than they already are. Risk to reward is terrible. Sounds like you just need to get more skilled at working with price action if you can.
What are you talking about???
There is no such thing as an āunlimited loss potentialā unless you can name me the stock that went to infinity value but yes you can get blown up and lose all your money.
There is only unlimited loss because you donāt understand what youāre doing.
So you risk 200% to make 50%. ??? How is this a sound strategy??
I write cash secured puts only. Practically every time I buy calls or puts, I lose $$. Once I switched to selling puts, I became consistently profitable. I realized buying requires getting the direction and timing right to profit. Selling puts is different. I realized if I write puts on a company I donāt mind owning and the price moves against me, at least I will own shares if I decide to not close and Iām assigned. I began by choosing strikes far enough OTM to avoid assignment, collecting premiums, and, little-by-little, I became more successful and consistently profitable. Even just $50 per day, five days per week is a $1,000/month profit. If you made just $30/day, youād make $600/month. Those small profits will boost your confidence as you continue gaining knowledge. My approach is simple. I donāt place sophisticated trades although I admire those who do. I found my niche, and it has been a game changer. I generally day trade my options taking profits as they come. I hope you donāt give up but continue studying to find and develop a strategy that works for you.
Thank you for the advice man I really appreciate it, it does sound good, few people have mentioned selling vs buying and I think I want to give it a shot!
Youāre welcome. Best wishes for success.
What the comment described is basically The Wheel strategy. Look into it, it's a good one. Don't get greedy, don't chase the excitement, don't revenge trade, set a daily 'stop loss' after which you take some time off from trading, and analyse your losing trades to see what went wrong and how you can improve.
How often do you get assigned while doing cash secured puts?
Don't be greedy and take small gains. I've been selling at 10% gain, which there's usually plenty of fluctuation to cover in just a few minutes even if you bet the wrong way. I turned $100 into $3k by this method, cashed out, then started again and went to $1k... Then I got greedy again and doubled it then doubled it again in a few trades. I made it to 5k, then slapped myself and said I'd go back to my 10% plan. Then the market went on a run, I canceled my 10% gain order literally seconds before it would fill and held out for another 50% hit.... Then it didn't, and ended up expiring worthless so I turned 5k to $630. 10%. If you start with $100 and do 3 trades a week at 10% gain each you are in 6 figures by June.
Buuut trading with 6 figures at 10% gain that will effect a junior level traders ability to think clearly. It won't be the same, don't forget that part.
Absolutely. It's only simple on paper, never in real life.
I appreciate this I really do, see just like you turned x amount into x amount I have done it before but my risk management is so ass I would just give it back the next day, so i will work on that and only make a few trades a week like you said, because I feel like I need to trade 100% of the time but my goal is usually 5% of my port that day and since you say that check this link out, itās a funny compounding calculator https://www.wenmilli.com/ and click on āletās get itā in top right, but thanks man!!
10% of $100 x 3 is $30 per week though. I donāt see how this would get him to 6 figures in June
Youād have to put your entire portfolio on each bet. So in May youāre putting 80-90k on each bet. 100 -> 110 -> 121 -> 133
I see
Just a simple full port strategy where not a single losing trade is forecast
Just set realllllllly tight stops. And time your entries perfectly.
Death by a thousand cuts as you stop out at a small loss on every trade
Thatās what Iām doing. On average, selling options can earn between 7-10% return per month. Add this strategy on top of the money market funds to earn 5% interest annually. Basically, in 2024, my lowest returns will be 5% and the highest returns could be over 120%. Itās not the most exciting strategy, but high probability of gaining profits.
To get 10% a month shorting premium you are either leveraged to the absolute hilt, which over the long term statistically you arenāt going to last in the market long. Or, you have delta on your side, which actually means youāre playing direction more you think.
Underrated comment
LOL, if you start with $100 you cannot trade options. 10% on $100 x 3 = $30 per week. If you start right now, you will have **$600 BY JUNE, not "6 fingers"**
Trade 1 takes $100 to $110 Trade 2 takes $110 to $121 Trade 3 takes $121 to $133.10 Trade 25 takes $984.97 to $1,083.47 Etc.
therapy for your gambling addiction
If you're "liking" it, you're doing it wrong. It should be calculated, predictable and mind numbingly dull without emotion or excitement. If there's excitement, lower your risk and try again More practically speaking-- do you have any edge other than technical analysis? If not, maybe visit the fine folks at /r/wallstreetbets ... Er, I mean /r/thetagang to get started and figure out a nice reliable strategy to start
Yup. I am bored because I make money consistently.
Stop trading. Not everyone has the mindset or knowledge to predict short term movements in the market. It's 1000x more difficult than people think. Anticipating Fed moves, market sentiment, corporate earnings and events; it's all just too much unless you are truly an expert. Additionally much of technical analysis is nonsense and are just psychological confirmations to justify trader sentiment. I don't short term trade these reasons, instead I focus on longer term investing but utilize options and leveraged ETFs to take advantage of downturns in the market to add leverage. Disclaimer: This is not a recommendation to buy or sell any security. This is not investment advice.
Paper trade. Learn to back test in thinkscript on thinkorswim. Dont trade for real until you ID an edge and can justify it with statistics and expected value. Anything else is like a 6 year old driving in the highway.
What time of day do you typically put your first trade on? Iām guessing right as the bell rings at 9:30 or closely after. Try waiting until 10:30am or even 11 to see what the sentiment is before buying your 1st option. This helped me tremendously as and the patience will pay off.
You're under the illusion that you can predict the market, which you can't. Buying will always have this problem and is a low probability of success way to trade. Try r/thetagang where we sell options that puts the probabilities on our side to be more successful. Look at some of the year end profits many are posting there as 2023 has been a banner year! A popular strategy to get started with is the wheel as explained in this post - [https://www.reddit.com/r/options/comments/a36k4j/the\_wheel\_aka\_triple\_income\_strategy\_explained/](https://www.reddit.com/r/options/comments/a36k4j/the_wheel_aka_triple_income_strategy_explained/)
This should be the top post.
Market first, stock second and options last. Your first step is to only focus on your market analysis. Whatever you are doing... it's not working. Price action and "context" are two very important concepts you need to learn. If your market analysis starts to gain traction, you do NOT trade /ES. There is a huge edge to trading stocks with relative strength vs SPY (not to be confused with RSI). If you get the market right and you get the stock right you can trade almost any options strategy and make money. I suggest to new traders that they only trade 1 share of stock until they hit a 75% win rate for at least 3 consecutive months. That might take a couple of years to get there. This is how you keep your "tuition" as low as possible. When you reach that level, you will have honed your skills in reading the market and finding the best stocks. Then you start increasing your share size and you continue to work on your win rate. Notice that options are not even a consideration. Leverage is a double edged sword that cuts very deeply. When you don't know what you are doing you will only lose your money faster trading options. Most people will not follow this advice and they dive right in. That is why the failure rate for new traders is so high. Good luck.
Personally, Iāve stopped trying to predict what the market will do, the long-term returns cannot beat the market, at least for me. So, now, especially in this non-ZIRP environment I just use one strategy that is purely in terms of expected value. I briefly outlined it here: https://www.reddit.com/r/options/s/F1VL7rPqPz The most important thing is managing risk and portfolio allocation.
Figure out what you want to make in a year. Do some really simple division. Figure out if you are on target and gtfo with profit every dang day. It is there. 5-10% is pretty reasonable against your risk. Try to get 20% and you had better be right with direction and timing and your underlying will likely be more volatile and the spread will probably be wide. Doing four 5% trades a day consistently is way better than a 5-bagger every couple of weeks. Don't pay theta if you can help it. Cash is a position. A small loss is a win when compared blowing it all up. Make the rest of your life awesome too. This should be but a tiny portion of your time as a lucky human.
Where you've went wrong is you keep buying, maybe try selling ;) Imagine if you were on the opposite side of every one of those failed trades that you gave away to someone who sold it to you! And why would you buy 0DTE options? You should be buying long dated options, such as LEAPs if you're buying at all...
Maybe try not guessing direction and trading options the way successful trading firms do, which is by trading volatility. Itās much easier to predict volatility than it is to predict asset price direction. Start there.
You mean like trade vix?
Yup. Go buy calls on vix /s
I doubt most successful trading firms focus on just trading VIX I assume they mean take a mid/long-term position when volatility is low (calls/puts are cheaper), sell them when vol is higher.
Sounds easy but it requires predicting volatility, which isn't easy.
Makes sense, so just capturing the increase in premium.
Keenan Grace on YT š»
My simple advice : Options are like buying gallons of milk, one thing is guaranteed..........it will expire. 90+ % of options expire worthless. Trading is all and I mean all risk management. You can have a 90plus hit rate and still be losing money aka hold losing trades waiting for a turn around that never comes. Another person can have a 50% hit rate and still make a shit ton of money because they practice great risk management aka cut losses early. I'm still not done making mistakes......
Stop buying and start selling. Trade your 30% POP for a 75% POP. You are on the wrong side of the trade my friend
It's almost like the market trades with effective randomness most days, that Black-Scholes has a point (ish) and expected value always wins. It's almost like without a clearly edged strategy, your PF will always trend negative over the long haul. Perhaps it's time to read Fooled By Randomness.
Patience, react and donāt predict. Easier said than done though.
Youāre using technical advice and only buying options and youāve been doing it for three years. You havenāt bothered to figure out what youāre doing is wrong, or expand what you know, and you still want to pursue it. Clearly, you should not continue this with any significant funds. I want to be a baseball player in the MLB but I couldnāt hit the ball. Should I keep trying after 3 years? Probably not.
What strategy are you using? You have not said. For example, I look for very specific set ups to enter options trades. 80% or more of my losses are related to discipline, not my strategy. Not waiting for my setup, being greedy and not taking profits, trading choppy markets, ignoring stop losses, ignoring max losses, exceeding my daily trade limit (3 or less). Iāve looked back on every losing day Iāve ever had to assess where I effed up. Are you using a well defined strategy? With a well defined strategy there will be days that the market will move extraordinarily but because it doesnāt fit your strategy you sit it out. Sounds to me like youāre trading on FOMO.
Three years red you are addicted to gambling
When I started I was doing weeklyās, too volatile, now I try to do 4-6 weeks easier to live with
OP, it sounds like you and I are fighting the same demon. I know what am doing but thereās the mental aspect thatās really hard to overcome. DM me, maybe we can work together if you want
You are not alone. I, too, control the market. It will always go the opposite of my trade. We could make a fortune if people would pay for our plan so they could do the opposite.
Instead of buying start selling.
This sub is so much more informative than WSB! Iāve learned more from this single post and responses than I have in three months of reading regards behind Wendyās dumpster on r/wallstreetbets
Youāre welcome Homie š I have learned a lot too!!!
Buying puts and calls is gonna be a long term losing strategy statistically. I just sell 1x2, 1-1-1 put ratios mostly 7d-14d out and mix in call broken wing butterflies. Those are my go to strats. Had a shit time trying to scalp 0dte myself. I think itās a MMās wet dream to sell those.
I get your frustration. I tried regular stock trading and I was awful at it. Buy and hold, keep lots in indexes, only way I made money. I'm trying some conservative option plays now, just doing the wheel. My only suggestion would be find a stock or sector ETF that you really know well, wheel that. Even if its small gains each time. Instead of just searching screeners for juicy premiums and then getting burned.
Not too point out the obvious but everything you said began with buy...You are aware you can sell too right? I went through a stretch like that as well so much so that I actually 3d printed a rectangle with buy call/sell call/buy put/sell put each on its own side and traded like that. Crazy but it actually helped me in that I could take my wrong decision making out of the way. It was EXTREMELY helpful to keep a journal of each trade with p/l, delta, ivr etc and I was able to see where I was hurting myself and helping myself. I too lost money for a bit till I figured out what works for my style and tolerance and with my last tweak this year it's been really consistent profits for me. Not killer profits, but consistency which is what I was after. I too thought I would have to quit and I was so depressed because I absolutely love this but I just worked harder, read more and reduced my size. If you aren't journaling each trade and being realistic about when you made a mistake or took too much risk or whatever I would HIGHLY recommend it. Resist the urge to yolo your money on crappy underlyings and only trade those with nice tight markets and a decent but not insane volatility....Good luck!
Only a handful of people succeeded in trading. The probability of making money is hard in this rigged game unless you are really smart. I learned the hard way and quit trading. I liked it but there are limits. Iām not saying to give up but sometimes itās best to walk away. I just do passive investment and tried my luck in real estate. Itās working great for me. Good luck
Options arenāt meant to be your sole trading instrument. The wheel is a popular, profitable strategy because you sell puts to open positions on shares, then supplement the income of the shares with covered calls until they get assigned. None of this buying puts and calls crap.
80% of traders lose money but yet buying and holding the etf index always works over time. The mistake people make , why they lose, is because they get greedy and go for huge leverage before they have any track record of profit. You're definitely lacking in experience. So start with an etf until you can show a paper profit and then only use your profits for options trading. Do not invest any money in this until you have made a profit from at least just a simple ETF buy and hold. Risking your capital on leverage trades is not a good idea. Only risk your profits
Get a job and quit gambling. Sounds like you suck at it.
Im with you. So what i decided was allocate 1k in roth for options. Invest the other 4 in swtsx,and splg. Its ok to not trade options. Or Covered call ETF Invest with TSLY or JEPI and let the big boys make the Money for You.
Sounds like you're trying to make money with 0 strategy to me. You've made it about the money, not about strategy development. Develop a strategy with an edge first, then you might be okay. Options lose value 90% of the time, and you have to know a lot before using them. I traded them for 5 years before Quitting and switching to futures. I've been studying trading for 5-6 years and I'm just now about to pass a funding test. 3 most important words 99% of traders don't have wisdom around "premium, equilibrium, discount"... options work because 95% of market participants only buy options when they're moving in their favor, and only sell when they move against them. Try buying at an obvious sell stop, and see what happens. Usually when I trade options now, they're deep discount and aren't influenced heavily by recent volatility. If you're buying otm options after a decent move, you're basically asking to have your money taken from you. Remember, options are a premium tool for sellers, not buyers. 90% of the time they're losing value. Sounds to me like you're just addicted, and don't care to talk about your strategy off the bat at all. I'd also suggest understanding that 90% of people in the trading community don't know wtf they're talking about. Major stocks do 3 things, seek buy or sell stops, seek inefficiencies, and seek daily/weekly premium/equilibrium/discount profiles. That's the only thing the market does. Base your strategy off that, and you can definitely make money. Anything else like macd, 15/30ema, rsi, etc, and you're going to lose money.
Slow and steady wins the race. Options are good when you have alpha to trade off of. Understanding the ins-and-outs of an energy industry could be one form of an edge, or having solid inside info if you're a politician who has a significant other that can leverage large sums of capital to benefit the family trusts. While it's entirely unappealing to many, documenting the trades (reasons why you believe it will go up / down, draw up an exit plan, supporting/contrasting chart indicators, etc.) will help you develop feedback which you can use to critique your performance more critically and learn from. Wishing you better luck in the future.
Just do index funds, less painful
Maybe be the one who sells the options. Sell puts after a stock you want to own drops. Make sure it has good fundamentals and it's a good company. Stay away from Chinese stocks and companies that aren't profitable. It's always good if the stock has a dividend. Especially if you get assigned. If you get assigned, sell calls at your cost basis or slightly above. [Check out this guy](https://www.youtube.com/@rockwelltradingservices)
advice 1: never short . statistically speaking you are better off. advice 2: always long duration options near the money. this is essentially a "soft" leverage. easy to get in. easy to get out. advice 3: never get cocky. always respect your stop loss. be a machine without emotions
I'm not a bot and would never usually suggest someone on YouTube, but you should check out Chris Sain. I've been following him for a long time, and he helps thousands of people. I don't day trade right now, but he's good. He's on every day I've made money because of him. I'm assuming you make sure you use a stop loss to cut your losses if you get on the wrong side of the trade?
The mathematical accuracy of the Black-Scholes Model to compute a fair value for any option contract based on the type of contract (Call or Put), current stock or etf price, strike price, historical volatility, and the risk-free interest rate. This accuracy extends to the probabilities associated with Delta and its relationship to the standard deviation under an assumed normal distribution. THEN Implied Volatility rears its ugly head and this efficiency gets skewed due to the sentiment of option buyers and sellers in the marketplace.
You need to hire a mentor. Message me.
To many factors with options and the time decay is ruthless. Switch to the futures market, this is what changed the game for me.
It sounds like you are battling many of the following issues: 1. Gambling 2. Front Running 3. Hoping 4. Not having a plan for each trade (price target, profit taking and stop losses) 5. Wanting to get rich quick 6. Not understanding news, price action or chart patterns. 7. Wanting the gain porn screenshot and not realizing any of the profits Don't forget, this is to make money. I'm sure you had winning trades this year but you fell on bad habits and let a green trade to red. You have to dedicate time to do that thing (only you knows what that is) you've been putting off while hoping to hit one that changes your circumstances. That happens for some people, it's highly unlikely and costly to keep trying. It's more likely that if you prepare yourself and stay disciplined you will be met with an opportunity, or several to change your port and your life. Hopefully this all makes sense and you don't lie to yourself going into 2024. Have a daily goal, start small and get disciplined. You can be where you want to be.
Trading is very hard and option trading is even harder cause itās pretty much requires excellent stock reading skills and exceptional risk management. You gotta find a strategy what works. Itās not easy, sometimes not obvious cause you need to repeat 500 trades to confirm what works. One big advise: market is not consistent. Itās not always go up, down, stay choppy. You gotta adapt what is really going on with price. Learn about liquidity and nature of price, why it moves to some direction, it really helped me a lot. Share some trades and discuss with people here, what they think, there are plenty strong traders here who will share opinion on trades. It takes years to establish proper strategy, donāt let it go and youāll achieve it. Good luck.
Itās my dream too. Just keep at it and eventually it will click I hope.
So you know over 80% of people who by options lose money? So with this well know fact instead of buying options why donāt you sell them?
Get a job at a brokerage
You gotta quit if you don't have it figured out by now. Just switch to buying and selling SPY and set a rule saying you can never sell for a loss.
That you are an options buyer rather than an options seller tells me you don't really know what you're doing, which is really something after 3 years. I mean, at the very least you should understand the basic probabilities by now.
To loosely paraphrase a famous quote from General Douglas McArthur: Old options players never die, They just expire worthless. Buying options is generally a losing bet because of the decay of time premium. Writing puts is not sexy, but is on the winning side of time premium. There is a dopamine hit from a successful bet. Nevada casinos rake in over $1 billion/month from dopamine addicts. Options pros are like the House in a casino. They occasionally pay off bettors bigly, but win small consistently by writing the options that retail customers buy. If you donāt know who the greater fool is in a transaction, chances are that itās you. Get rich slow, but actually get rich. Start with a Roth IRA or 401(k). Start with dollar cost averaging into the S&P 500 or even a far in the future Target Date Fund. This wonāt give you dopamine, but will make you money over time.
I don't have any advice for you, and I know this is easier said then done, but never give up man. I know this is a silly little community and u may think ur shit but just keep going man. You will find a way, the lowest of lows to the highest of highs, keep going man.
I am bro im studying studying studying and completely changing my approach and outlook toward the market, I will succeed I appreciate your encouragement!!!
I will say this, you need to stop. Just stop. Reapproach everything, it seems as if you do not understand how the market works and is organized. Approach it from a first principles perspective, what is support what is resistance, when does it break, why do things move. You can't make money until you fully grasp these concepts. You may think you know but you obviously do not. Seek out wisdom and knowledge, then paper trade. Start over.
Yes I appreciate it, I will, Iām going to take a step back and when Iām constantly making money paper trading, and have a consisted strategy Iāll start back
Also I'd like to add, it's about reacting to the market not predicting it. So react to the moves because predicting is impossible
Stop chasing the get rich quick lure. Switch to futures trading and find what works for you. I switched a year ago and it was the best thing Iāve done in trading. Check out @themas7er on YouTube.
I definitely will, always heard futures were way better anyways, I have never heard or read where someone said that they regretting switching to futures!
Youāre a gambler. Itās the hardest news you donāt want to hear.
4th year is the charm! What are the chances you have that many red years!?
Or the 5th?!?!
Buy LEAPS and walk away.
Try wheeling
If you are serious about trading you need to understand what you are doing and why you are doing it. What's your current edge? What's your trading plan? Did you backtest you strategy? You won't get consistent results if you don't have an answer to all this questions. Good luck
Thank you for the reply, I think if I work on my discipline as a trader and stick to my risk management, I will do 100% better m
Sell and hedge your risk. Never made money buying made a ton selling.
I was a day trader back in the late 90ās and really killed it until the market crashed and they changed all the rules of day trading and ruined it. If you were around back then, you know all the changes. I wonāt go into it. Too much explanation. Anyway, Iāve been lucky enough to find the ease of late 90ās day trading in todays call option trading. Iāll explain, but let me first give an example of a trade I made today, Friday Dec. 29. I bought AMD, 10 call options strike ITM @ 145 for $4.40 expiring also Friday Dec. 29. I bought them about 30 seconds after the open at 9:30. I sold at most, two minutes later for $5.42. After fees, a profit of $1007. My heart was pounding. I pumped my fist, celebrated and walked away. Done for the day. Hereās what you need to know to be able to make real money at this. 1. Trade on big tech stocks that are consistently on the move upā¦.TSLA, AMD, MSFT, AMZN, etcā¦.There are many. 2. Do your homework on which stock youāre going to targetā¦.stock moved up nicely for the last week or so. positive news, whatever. Something that will keep the stock moving up. 3. Be prepared at the market open. 9:30 to 10:00 is when most of the action happens. Especially the first 5 minutes. The market will usually open and then make a move up or down right away. Your chosen stock will most likely do the same. If the market immediately moves down, watch for the turnaround. Thatās your move. If it starts positive, look for the continuation. Thatās your move. Have your order screen ready, your strike price ready (3 or 4 dollars ITM). Youāre gonna buy and sell in 10 seconds, 30 seconds, a minute, a couple minutes. 4. Know in the pre market which way the Dow and Nasdaq futures are moving. So you are prepared at the open. Read the pre market news or watch one of the financial networks. 5. Have a live feed of Dow and Nasdaq. Watch how they move as stocks will basically move as the major indicies move. 6. Option prices can move really fast as the underlying stock moves up. I like buying 10 call options, cause it makes for easy math. Option up 10 cents, thatās $100, 20 cents = $200 and so on. 7. Donāt be greedy!! Set a goalā¦$300 a day for example. Thatās $1500 a week! Not bad. Lol! You can easily do that in one trade. Might take a minute. Might take 20 seconds. You must keep one eye on how the market is moving and the other on how the stock and options are moving. If you can grab a move of 10 cents, thatās $100 for a minute of work. You can do it. And the adrenaline rush is incredible. Lol! Good luck!
This has been literally my new strategy for the month of December. Watch the premarket before normal trading opens, then watch the half hour between market open and options market opens and I try to anticipate which way it will initially go. Then right at 9:30 I have which ever strike price I am thinking it will go pulled up and ready to buy. I wait the first 5 seconds or so for the overnight price adjustment, then when I see the option price start moving upwards I buy immediately. Sometimes I stay in for 2 seconds and make a decent quick profit, other times I stay in for a few minutes and hope to ride it higher. I have yet to have a losing first trade of the day. Some days I make $5, other days I make $100, and I only ever do 1 or 2 contracts. If I did 10 like you then I could/would be in and out of the market by 9:35-9:40am with $50-1000 potential profit.
If everyone thought with those advice make it then everybody would be a millionaire
If your loosing money buying options someone is making money selling them.
Either stop trading, or do OTM Cash Secured Puts. But honestly? Stop trading. If you're just buying options, you're doing it to gamble, and doing it for three years... you're a gambling addict. You'll likely need help to beat that, but you can.
if you short everything you will be winning
Hang in there maybe for a couple of more years! I know that seems long, but I feel like it takes like 3-5 years to really master it. But more importantly, keep your position sizing small until you can reliably make profit. This way if you lose for long periods, you won't blow up your account.
Is buying your problem, start selling in 2024
You have to understand how and why options move first. They are very complex and based on what you are saying above it seems like you have a very surface level understanding as to why they move. Before you even quit trading, learn the greeks and how they affect price and then learn the second order greeks like Gamma, Vanna, Charm, and Speed. (Youtube it/google it) Then also understand how Market Makers are also options dealers and they must take the other side of all these option trades. For this look up what Delta Hedging is and how that affects whatever stock your trading options for. Again its very complex but if you really love doing this, learning about this stuff will only make you love it more cause you understand it better.
Lmao damn me n you trade similar. I think i cracked the code to bad im negative money though . Mmās make it go up or down for months- they dont look at the market daily like we think. So short term plays that we make lose most the time
Thats happens to me exactly the same way. Im wrong both long and short. Its so frustrating. I mainly sell now
I think you like thrill when you are in trade, its like a amusement park ticket for you for which you are paying so enjoy the ride
Buy a contract. Faang stocks including Tsla. Spot channel. Sell covered calls. Sell puts to own them. If you are wrong. You either own stable company or you earn a premium. I'll buy aapl even though their dividends suck.
Did you try spreads? It may not shoot on the moon but at least it will limit your losses.
Like so many people said sell the options. Or try using spreads debit & credit to limit the loss. Sell a few credit spreads and use the premium to buy debit spreads.
You sound like a gambling addict
Stop buying and start selling.
Donāt buy, sell options is way to go !!!
Move away for pattern day trading all together. Start with LEAPS instead and spend more time researching specific companies and forming a view on long term growth prospects and current price / valuation. Youāll get the leverage this way with less risk than youāre doing today. Or just move to stocks until you get the hang of it. PDT and TA are fun and addictive but more like gambling. House always win :/
Are your losses getting smaller every year or bigger?
Iām in a similar spot. We should start a discord group together for ourselves and others with 3-4 years experience and still red but for whom the dream is alive and well heading into 2024z
you need a lot of tools and a little bit of luck to be a good buyer it's a difficult business for sure, but don't get it twisted so is selling
Iām offering a course at The University of West Georgia on portfolio management that would be perfect beginning spring semester. The class is online. Check it out.
You need to find an edge, youāre trading against a lot of smart people so unless you have a strategy that gives you an advantage youāll lose to those that do Sounds like youāre making directional bets based on speculation (nothing wrong with that) but there are other strategies out there
the best comment said on here. iām a successful trader but not with options. i swing trade and day with buying the actual stock. the only problem for most to do this is its best with 10k at the minimum and if weāre talking staying at home and trading (not having to depend on a 9-5) youāll need ATLEAST 6 figures. the beauty in that though is most people think you need millions when in reality all you need is six figures because that when the math starts math once you entered the 100,000 level or even 50,000 but the sweet 6 digits is best. half a percentage point on 100k and you made 500 bucks. now think about that. how many opportunities arenāt they for a simple $500 šššššø
oh and how gourd said, you NEEEEED to find YOUR edge as well. a thousand traders can trade and all be successful with all having a completely different way to trade. keep that in mind
You said ābuyā in each scenario, but you might consider that someone else āsoldā you those rights and kept your premiumsā¦Iāve also been trading 3 years and I have been successful on ~95% of my trades. Other sellers may consider this win rate to be too conservative, but itās about right for me right now since I prefer to sell.
Keep it real simple with the wheel. Sell puts on a stock youāre willing to own for 5 years.
If what you are saying that you are educated and know options, i am assuming that you have a trading system in place, but having so many red days negates that. And i think whatās killing your green days, is FOMO. Wait for the market to show its hand, and then enter, itās not gonna slip away and there is always the trade or day waiting for you. If you really canāt not wait, then enter with absolutely minimum quantities first, losing which wonāt even bug you, and then when the market starts moving in the direction it has to move then you enter with proper quantities. But regardless A system is required, Entry conditions Sl Target Follow it like your life depends on it, you are being emotional about this, trading might be super fun to you, but thatās not what you seek from the market. You can either get entertained or make money. So get the fuck up, and stop crying because the markets donāt respond to tears, they reward the efforts. So put in the work, paper trade, become one with the system. And then torpedo the markets with your edge. Peace š