02-19-2019, 01:49 PM
Agreed, when you add the eventual intention of going long it turns our bad day "loss" into the end goal. Albeit we end up buying some stocks at a premium to current market price, but we picked the price in the first place. It comes down to proper selection of the option. Rookies tend to purchase way out of the money calls because they are very cheap and they can hit that home run if it works out. That is where the 70-90% loss rate stats come from. They are true, because that is what many people actually buy until they figure it out. The smart money does not unless they are playing algos and trading it ten minutes later. I'm sure there is plenty of that going on as automated as things are.