trading options

Blue Origin / Eng
maverix πŸš€

Go to company page Blue Origin Eng

maverix πŸš€
Jun 26, 2020 49 Comments

Buy options? Share your success/fail stories, how much dod you make? What made you do it, and would you do it again?
no risk no reward right?
what was the premium you pid compared to your savings/tc? #personalfinance #investments

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TOP 49 Comments
  • Palantir
    randomecho

    Go to company page Palantir

    randomecho
    Just don't do it - anyone who tells you they are making money out of it is lying or part of x% who is lucky at that moment.
    There's a reason actual asset managers don't build option portfolios... It's not a real investment medium but should used for coverage.
    Jun 26, 2020 9
    • Palantir
      randomecho

      Go to company page Palantir

      randomecho
      The sell side most of the time, sometimes the exchange, rarely the company itself. Do I need to explain why as an investor you're not in the same business as these players but more similar to a buy side
      Jun 27, 2020
    • Amazon
      cnnm71

      Go to company page Amazon

      cnnm71
      There absolutely are option portfolios. Look for "tail risk funds" and "volatility funds"
      Jun 27, 2020
  • Uber
    InTheGym

    Go to company page Uber

    InTheGym
    I do. Started with real small # now up 600% in month n half. I don't day trade tho, that's not my thing. And some options I hold for longer periods. I also exercise and hold shares of companies I legit believe in.

    It's been a great time to options trade because of the volatility. But I couldn't be this successful if i weren't laid off. Things move quickly and if I were working full-time right now id definitely miss a lot of opportunities/open myself to more risk.

    Now for clarity, I've been doing this for couple years off and on this is just first time I've had time to devote to it.

    I follow a few general personal rules

    1. I only buy calls. I honestly hate the idea of betting against a company.
    2. I have margin but i don't use it
    3. Id say 85% of the time I buy cheap OTM calls
    4. Dont spend more than 100 to 500 at once unless I'm super positive about something and buy the option for months out
    5. I look for momentum, oversold and undervalued. I wouldn't for instance trade options of a company like idk, Amazon, unless it fell 800 dollars a share or something. And even then for a company like that id prob just buy the shares outright

    And that's it. Once I make a certain amount I don't mind getting something wrong because I'm not losing the principal I put in.

    My most recent crazy trade? Turning $300 into $11,000.

    I'm also religious and superstitious concurrently so there's both prayers/praise and ritualistic habits going on πŸ˜‚
    Jun 26, 2020 10
    • Yeah that's what I wanted to know.. What is definition of cheap.. Thanks
      Jun 27, 2020
    • New
      HolyGuac

      New

      HolyGuac
      ^ cheap = (money you won't regret losing)Γ·10

      The factor 10 is for the mistakes you make. You might make 8 mistakes and recuperate them with the 2 good bets. The factor 10 varies depending on the risk level.
      Jun 27, 2020
  • I’ve lost a lot of money
    Jun 26, 2020 3
  • Amazon
    CYvI05

    Go to company page Amazon

    CYvI05
    Options are like gambling not investing. Initially had huge profits , got carried away and lost a lot then recovered some but still in negative. Thing is it's hard to give up and loss can be painful if you are too attached to your money
    Jun 26, 2020 0
  • Marvell
    denman619

    Go to company page Marvell

    denman619
    Fiend and I had a memorable experience with options trading. Couple of big YOLO plays on TSLA and AMZN during the sell off in Q4 2018. Made a couple of thousand in a day however, the volatility was too great for us to continue monitoring and since we didn't have the 25K account minimum, we only had 3 day trades available per week. There were many times I saw the market pivot in a day and saw all my gains completed wiped and more. I still ended up losing about a month worth of salary over the span of 3-5 months.

    Ever since then, I've stayed away. It was a fun learning experience but it's quite dangerous and could be become highly addicting. Be careful.
    Jun 26, 2020 1
    • +1 on the addiction part! I lost some money on spy puts and then recovered and made money on spy calls... This made me arrogant and put more money on options. Almost always I prefer options because I have lost patience and the make quick bucks is too damn addicting
      Jun 27, 2020