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[/quote]
. I think I mentioned I was getting a 2% return for 24HRs of call premium on boring stocks like DOW or one of my sorry airlines lol. I do it every Thursday on 4 or 5 positions. I have no idea why anyone would pay that and lose almost every time.
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The reason is because the options are priced perfectly. Your win rate is what it is "supposed to be" as is the buyer of those options. You get small wins XX% of the time and they get small losers XX% of the time. They get big wins X% of the time and you get big losses X% of the time.
There is no inherent edge to selling or buying options, it works out to be the same over a large number of trades. The edge relies on one's ability to be right. Right on direction of underlying price or volatility. That provides an option trader 2 things to focus on and provides leverage over just outright stock trading.
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. I think I mentioned I was getting a 2% return for 24HRs of call premium on boring stocks like DOW or one of my sorry airlines lol. I do it every Thursday on 4 or 5 positions. I have no idea why anyone would pay that and lose almost every time.
[/quote]
The reason is because the options are priced perfectly. Your win rate is what it is "supposed to be" as is the buyer of those options. You get small wins XX% of the time and they get small losers XX% of the time. They get big wins X% of the time and you get big losses X% of the time.
There is no inherent edge to selling or buying options, it works out to be the same over a large number of trades. The edge relies on one's ability to be right. Right on direction of underlying price or volatility. That provides an option trader 2 things to focus on and provides leverage over just outright stock trading.
[/quote]
I'm sure they have a different goal. (day trading leverage). They may be riding this for two hours or less. I am usually taking it to expiration for an expire out of the money. The difference now is just the premium of course. I'm not selling 1-2 day covered calls when volatility is down. It's usually not worth doing it at all. I'll take it for now.
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Hmmm looks like the market wants to head straight up again lol. I guess all those shorts and puts are going to hurt people. Better start to get long here lol
ITA bought that ETF today. I like the holdings and its like $100 off its highs lol
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03-31-2020, 09:31 AM
(This post was last modified: 03-31-2020, 09:43 AM by divmenow.)
Bought WM and added a big position in STOR
Added to IRM and RTN
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Added some SBUX and new position in STAG
Mine as well add to SBUX. I go there every morning lol. I realize it could come down some but this is a name you buy on weakness. The drive throughs are still packed.
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Markets were going up today, so I sold my put for a loss about an hour ago. Right on queue, the markets started heading South...
