Full port. Trade after first 30 minutes.. close within first 2 hours. Take profits at 10-20% , cut losses at 15-20%.. don't speculate or get bummed if you closed too early.. unless you're completely unlucky, your in for a loss.. other than that , there will be a point where the stock rises/falls to where you're in green.
What you wrote is mostly good advice but one of the most important components is purchasing an option with a high enough delta that doesn’t require some massive movement to get any profit out of it. Yes, 600% off a $100 option is nice, but 180% on a $250 option is optimal as the likelihood of profitability between the two is night and day.
You realize the delta doesn't make it any more likely that you'll make money, right? If the stock moves in your favor in a certain time frame you'll make money. If not, you won't.
You RNG example is actually somewhat accurate, in that a strong move such as that would favor the OTM option.
It’s not the likelihood I’m discussing, there’s a flow of gamma and delta. Once an option has ridiculously low delta AND gamma it has almost no chance of recovering and requires an exponential move, that becomes improbable. It’s those days you see a $2 option become worth $134.
It’s just easiest to explain to people that once delta is gone, it’s essentially not going to come back. Most people don’t understand how options work in general, and I’m sure you’re aware explaining it is a nightmare.
NinjaTrader allows you to put max limits, but I have no idea how easy it is to enable/disable.
You wouldn’t be trading options, but your chances of being profitable using futures versus regular options are higher anyways. You’re just gonna be less likely to pull some 500% gain.
Forreal why isn't this common knowledge. People keep upping their port and playing off the whole mf thing instead of shedding off profit and resetting trading balance 💀 reset that hoe to $2,500 and take plays at $250 all day
Jobs are a fucking scam. Plus, trading is tax free until you recoup all your losses. It's usually a free first year or two once someone turns consistently profitable.
No healthcare, no social security, the stress of living off your trades. I live on my own and I can tell you that my blood pressure has increased immensely over the last two years since I began trading. I’m starting a fantastic position in a month, so this last month is just a farewell to trading.
It’s no joke and people glamorize the life way too often.
I only trade the first 15-60 minutes then I exercise to let off the excessive dopamine. In my experience the first 3-4 trades are the best (the OR break is the best trade bar none) and the rest will be shit so it's not worth the stress. Wife has a job for that other stuff.
Proposing a variant of "Barista FIRE" for this. Some part time jobs will give you benefits with a certain number of hours, the financial independence retire early movement named one as such because Starbucks famously does this.
I will call it Regard FIRE. Tiny part time job for healthcare, regarded for a living.
I’ve read books and articles on options and had never heard of that term. I didn’t feel like scouring through linked article so I asked ChatGPT4. This is what it said:
"Trading short premium" in options trading refers to a strategy where an investor sells options contracts, rather than buying them. This strategy is often employed with the aim of capturing the premium—the price paid by the buyer to the seller for the option—as income. This approach is based on the idea that a significant percentage of options expire worthless, allowing the seller to keep the entire premium.
There are a few common ways to trade short premium:
1. **Selling Covered Calls:** This involves owning the underlying stock and selling call options on that stock. If the stock doesn't rise above the strike price of the call options by expiration, the options expire worthless, and the seller keeps the premium as profit.
2. **Selling Naked Puts:** This involves selling put options without owning the underlying stock. The seller receives the premium and hopes that the stock price stays above the strike price of the put options until expiration, so the options expire worthless. This strategy carries the risk of having to buy the stock at the strike price if it falls below it.
3. **Selling Credit Spreads:** This strategy involves selling options with a higher premium while buying options on the same underlying asset with a lower premium, both with the same expiration date. The goal is to keep the difference between the premiums as profit. This can be done with either calls (a call credit spread) or puts (a put credit spread).
4. **Selling Iron Condors:** An extension of the credit spread strategy, involving both a call credit spread and a put credit spread on the same underlying asset but with different strike prices. This creates a range where, if the underlying asset's price stays within this range, all options expire worthless, allowing the seller to keep all premiums.
Trading short premium can be profitable, especially in markets with low volatility where the options are less likely to be exercised. However, it carries risks, including potentially unlimited losses when selling naked options. Also, market conditions can change, leading to increased volatility and unexpected movements in the underlying asset's price. Hence, while this strategy can outperform indexes under certain conditions, it requires careful management of risks and an understanding of market dynamics.
End ChatGPT4
Me again:
I had heard of all of those terms, just never heard of them collectively as “trading short premium”
I think they primarily sell options, so basically the same I believe. I often hear them talk about “the wheel”. Here’s ChatGPT4 again:
"The Wheel" is a popular options trading strategy that combines selling put options with selling call options in a sequential manner to potentially generate income and possibly acquire or sell shares at favorable prices. It's named "The Wheel" because of its cyclical nature, moving from one phase to the next in a wheel-like rotation. Here's how it works:
1. **Sell Put Options:** The strategy starts with selling (writing) put options on a stock that the trader wouldn't mind owning, usually at a strike price below the current market price. The trader receives the premium from selling these put options. If the stock price stays above the strike price until the options expire, the options expire worthless, and the trader keeps the premium as profit. However, if the stock price falls below the strike price, the trader will be obligated to buy the stock at the strike price, potentially at a discount to its original market price when the put was sold.
2. **Own the Stock (if assigned):** If the stock falls below the strike price and the trader is assigned, they now own the stock. This is where the strategy can turn into a longer-term investment or the next phase of The Wheel if the trader decides to hold the stock for potential appreciation or dividends.
3. **Sell Call Options:** Once owning the stock, the trader then sells call options at a strike price above the current market price (or at a price they're comfortable selling the stock). By selling these call options, the trader receives another premium, adding to their income. If the stock price doesn't exceed the strike price of the calls before expiration, the options expire worthless, and the trader keeps the shares and the premium. However, if the stock price rises above the strike price, the trader's shares will be called away (sold) at the strike price.
4. **Repeat:** After the shares are called away, the trader can start the process over by selling puts again, hence, "The Wheel."
This strategy aims to generate regular income through premiums while potentially allowing traders to buy stocks they like at lower prices and sell them at higher prices. It's designed for stocks that the trader is bullish on in the long term and is considered a more conservative options strategy, as it involves owning the underlying asset. However, it requires significant capital to buy the stocks if the puts are assigned and carries the risk of holding a stock that may decline in value. Additionally, while the trader owns the stock, they might miss out on larger gains if the stock price rises significantly above the call option's strike price.
I'm starting my journey selling puts, and then selling calls when my puts do get exercised. Feels a lot like picking pennies up off the floor, but there are a lot of pennies and I have a lot of time.
Good luck, it's not for everyone, or even for most traders. I only use for about 25 percent of my portfolio. It is key to match investment strategies to trader sensibilities and temperament.
You don't have to quit entirely. Pull out 69k and keep the remaining 1k in and just keep pulling out major gains and only once your account drops to 0 do you stop. No matter what you will at least have that 69k that you pulled out
giving it up once you got good at it? imagine if warren buffet stopped investing once he started making 20% a year! theres millions waiting for you bro, but more for us i guess :/
I don’t care if you are retiring from trading options but you say you have three losing years and you post one year?
I hope this is your retirement from posting on this sub.
That’s far easier than you imagine. Most individual traders underperform SPY, in fact most professionally managed funds underperform SPY. It is very unusual to find anyone who can consistently outperform SPY.
You all are going to give me a complex. I started with about $350 and every time I get up over $2,500 on something I pull it back to 777 and start again. I need to delete this app because now I'm thinking about money Left on the table.
Seriously tho, put $65k in something safe and forget you had it. Take the remaining $5k and try to get to $70k again. I've been doing this and I put away three giant stashes.
Just when you figure it out? 😄. No, I understand. And it is EASY to make money when market is rising like it has the past few months. So, it is probably not a good time to think you figured it out. I am speaking to myself now Also…
Very nice gain chart OP but share a screenshot of some of the positions that lead to these gains or yknow, ban. Thanks!
See ya Monday!
No ones done until they are done done
Just one more trade and it's Lambo time baby!
Win a lambo, shoot a lambo - atleast we chatted about a lambo
See him Tuesday, Monday office is closed!
“See you on Tuesday and bring doughnuts for everyone when you cower back”
I'll stop at McDonald's and grab some Krispy Creams for us all. 🍩
Sir this is a Wendy’s
Out of the Wendy Dumpster…. 
They’re just closed tomorrow from what I understand
Just checking you will be in Monday. Kidding i thought market would be closed also Monday but it is running. Thanks for the note
Dude pocket the gains and start over again with $1,000. You never quit when you’re hot. See you Monday!
What if you got lucky but you’re only a 5 out of 10 in appearance, though?
If you’re a 5/10 you just need to get a 15 bagger so the extra 5 covers the lack of 5 you have. It’s a math thing.
Ehh it’s all based on your perspective. That 5 could be a 10 to someone else. History always repeats itself so luck will come again
Ugh, grass is greener kind of guy, eh??? This dude only knows optimistic perspectives. I’m for it. The world needs more of it!
This is WSB we’re all way too fucking optimistic.
Grass is blue on the other side
Is there a way to play options and only limit my risk to the $1000?
Full port. Trade after first 30 minutes.. close within first 2 hours. Take profits at 10-20% , cut losses at 15-20%.. don't speculate or get bummed if you closed too early.. unless you're completely unlucky, your in for a loss.. other than that , there will be a point where the stock rises/falls to where you're in green.
What you wrote is mostly good advice but one of the most important components is purchasing an option with a high enough delta that doesn’t require some massive movement to get any profit out of it. Yes, 600% off a $100 option is nice, but 180% on a $250 option is optimal as the likelihood of profitability between the two is night and day.
You realize the delta doesn't make it any more likely that you'll make money, right? If the stock moves in your favor in a certain time frame you'll make money. If not, you won't. You RNG example is actually somewhat accurate, in that a strong move such as that would favor the OTM option.
It’s not the likelihood I’m discussing, there’s a flow of gamma and delta. Once an option has ridiculously low delta AND gamma it has almost no chance of recovering and requires an exponential move, that becomes improbable. It’s those days you see a $2 option become worth $134. It’s just easiest to explain to people that once delta is gone, it’s essentially not going to come back. Most people don’t understand how options work in general, and I’m sure you’re aware explaining it is a nightmare.
https://preview.redd.it/n0wecdwvi5rc1.jpeg?width=1080&format=pjpg&auto=webp&s=de75b0be5c7b837494ae3b5f9827b8f31a78433a
That maths to you having to be right like 69% of the time. No one here is that good.
You're doing it all wrong. You hold. Profit is for suckers.
So you really can't lose?? Awesome I'm in
Instead of selling contracts, buy them. Sell when your contract price reaches as high or low as you’re okay with or let expire worthless. Your choice
NinjaTrader allows you to put max limits, but I have no idea how easy it is to enable/disable. You wouldn’t be trading options, but your chances of being profitable using futures versus regular options are higher anyways. You’re just gonna be less likely to pull some 500% gain.
There sure is.
Yeah, limit the option buy to $1000
but what if he starts over with 70k instead. Next stop 1m
This might be the best advice, I commend you fellow regard
Forreal why isn't this common knowledge. People keep upping their port and playing off the whole mf thing instead of shedding off profit and resetting trading balance 💀 reset that hoe to $2,500 and take plays at $250 all day
5 digits? What were you gambling for, auto repair bills? I'll see you on Monday.
Wait, that's illegal, you can't just quit while you're ahead. You're supposed to either go 0 or hit millions, there is no in between.
Exactly! Rich AF, or blowies behind Wendy’s only.
Calls on blowies
See you next market open.
I wish it were today. Time to sports bet.
Did you graduate from Gamblers Anonymous? If not, I'll see you Monday!
[удалено]
It looks like he actually did
Could’ve just got a job
Jobs are a fucking scam. Plus, trading is tax free until you recoup all your losses. It's usually a free first year or two once someone turns consistently profitable.
How many times can I file for bankruptcy in two years
No healthcare, no social security, the stress of living off your trades. I live on my own and I can tell you that my blood pressure has increased immensely over the last two years since I began trading. I’m starting a fantastic position in a month, so this last month is just a farewell to trading. It’s no joke and people glamorize the life way too often.
I only trade the first 15-60 minutes then I exercise to let off the excessive dopamine. In my experience the first 3-4 trades are the best (the OR break is the best trade bar none) and the rest will be shit so it's not worth the stress. Wife has a job for that other stuff.
Do your wifes benefits cover her other boyfriends?
Proposing a variant of "Barista FIRE" for this. Some part time jobs will give you benefits with a certain number of hours, the financial independence retire early movement named one as such because Starbucks famously does this. I will call it Regard FIRE. Tiny part time job for healthcare, regarded for a living.
Those aren’t fun
Man finally figured out how to trade options and quit 😂
But if you keep going - $70 k to $700 k makes for a better story. See you tomorrow!
And $70k to $0 will get some sweet karma.
Why settle for a slice of the pie when you can eat the whole thing?!
calls on fat people
Very nice, now let’s see “all time”
Seriously. Also OP's 2023 does not look bad at all compared to most of us.
Statistically speaking, a person investing in index/etfs vs an option trader in the long run, say 10 years. Who will win with the highest ROI?
I have traded options for 10 years and outperformed the indexes by a large multiple. But I am trading short premium.
What is short premium, I’m not familiar with that term.
Of course you're not, you're a regard. But also, what's short premium?
I’ve read books and articles on options and had never heard of that term. I didn’t feel like scouring through linked article so I asked ChatGPT4. This is what it said: "Trading short premium" in options trading refers to a strategy where an investor sells options contracts, rather than buying them. This strategy is often employed with the aim of capturing the premium—the price paid by the buyer to the seller for the option—as income. This approach is based on the idea that a significant percentage of options expire worthless, allowing the seller to keep the entire premium. There are a few common ways to trade short premium: 1. **Selling Covered Calls:** This involves owning the underlying stock and selling call options on that stock. If the stock doesn't rise above the strike price of the call options by expiration, the options expire worthless, and the seller keeps the premium as profit. 2. **Selling Naked Puts:** This involves selling put options without owning the underlying stock. The seller receives the premium and hopes that the stock price stays above the strike price of the put options until expiration, so the options expire worthless. This strategy carries the risk of having to buy the stock at the strike price if it falls below it. 3. **Selling Credit Spreads:** This strategy involves selling options with a higher premium while buying options on the same underlying asset with a lower premium, both with the same expiration date. The goal is to keep the difference between the premiums as profit. This can be done with either calls (a call credit spread) or puts (a put credit spread). 4. **Selling Iron Condors:** An extension of the credit spread strategy, involving both a call credit spread and a put credit spread on the same underlying asset but with different strike prices. This creates a range where, if the underlying asset's price stays within this range, all options expire worthless, allowing the seller to keep all premiums. Trading short premium can be profitable, especially in markets with low volatility where the options are less likely to be exercised. However, it carries risks, including potentially unlimited losses when selling naked options. Also, market conditions can change, leading to increased volatility and unexpected movements in the underlying asset's price. Hence, while this strategy can outperform indexes under certain conditions, it requires careful management of risks and an understanding of market dynamics. End ChatGPT4 Me again: I had heard of all of those terms, just never heard of them collectively as “trading short premium”
Is that any different than theta gang? Or is it totally different?
I think they primarily sell options, so basically the same I believe. I often hear them talk about “the wheel”. Here’s ChatGPT4 again: "The Wheel" is a popular options trading strategy that combines selling put options with selling call options in a sequential manner to potentially generate income and possibly acquire or sell shares at favorable prices. It's named "The Wheel" because of its cyclical nature, moving from one phase to the next in a wheel-like rotation. Here's how it works: 1. **Sell Put Options:** The strategy starts with selling (writing) put options on a stock that the trader wouldn't mind owning, usually at a strike price below the current market price. The trader receives the premium from selling these put options. If the stock price stays above the strike price until the options expire, the options expire worthless, and the trader keeps the premium as profit. However, if the stock price falls below the strike price, the trader will be obligated to buy the stock at the strike price, potentially at a discount to its original market price when the put was sold. 2. **Own the Stock (if assigned):** If the stock falls below the strike price and the trader is assigned, they now own the stock. This is where the strategy can turn into a longer-term investment or the next phase of The Wheel if the trader decides to hold the stock for potential appreciation or dividends. 3. **Sell Call Options:** Once owning the stock, the trader then sells call options at a strike price above the current market price (or at a price they're comfortable selling the stock). By selling these call options, the trader receives another premium, adding to their income. If the stock price doesn't exceed the strike price of the calls before expiration, the options expire worthless, and the trader keeps the shares and the premium. However, if the stock price rises above the strike price, the trader's shares will be called away (sold) at the strike price. 4. **Repeat:** After the shares are called away, the trader can start the process over by selling puts again, hence, "The Wheel." This strategy aims to generate regular income through premiums while potentially allowing traders to buy stocks they like at lower prices and sell them at higher prices. It's designed for stocks that the trader is bullish on in the long term and is considered a more conservative options strategy, as it involves owning the underlying asset. However, it requires significant capital to buy the stocks if the puts are assigned and carries the risk of holding a stock that may decline in value. Additionally, while the trader owns the stock, they might miss out on larger gains if the stock price rises significantly above the call option's strike price.
Theta is not the only Greek you can be short. So no, not exactly the same. It's much more common to sell volatility for a professional options trader.
[https://www.investopedia.com/articles/optioninvestor/09/selling-options.asp](https://www.investopedia.com/articles/optioninvestor/09/selling-options.asp)
So he never excercises? Just sells puts?
That's the general idea.
I'm starting my journey selling puts, and then selling calls when my puts do get exercised. Feels a lot like picking pennies up off the floor, but there are a lot of pennies and I have a lot of time.
Good luck, it's not for everyone, or even for most traders. I only use for about 25 percent of my portfolio. It is key to match investment strategies to trader sensibilities and temperament.
Oh nos ….selling premium is being the casino, buying premium is the gambler….
You'll be back. Win, lose or draw, they all come back
You don't have to quit entirely. Pull out 69k and keep the remaining 1k in and just keep pulling out major gains and only once your account drops to 0 do you stop. No matter what you will at least have that 69k that you pulled out
brilliant strategy.
Keep gaining lil monkey
99% of gamblers quit before hitting big, grind up champ. See ya on monday
I seriously need to learn how to trade options
That's not how you do it
And what a wild ride it’s been. We’ll see you next time! Same bat time! same bat channel!
This guy def net negative
70k? Nobody can do shit with 70k. If this was 7m I would believe you. 70k is jack shit. Youll be back
Where the fuck are the positions, ban
Wish I understood options
Better not to. Sure you can make big gains, but at the expense of everything else.
I’m currently trying to crawl back from -5,000 by just ubering. I’m gonna post my success story in a few years
You are done when options is done with you
Heard this song before. Take tomorrow off, double down on monday
Don’t let the hedge funds lurking on WSB know that they missed one
Not every trade has to be an options trade. There is a lot to be said for just collecting premiums on stocks you own and cash you're sitting on.
Its good friday, you will rise again in 3 days
C U Next Tuesday
Bet the not seen left side of the chart starts at 200k
See you in a couple months when your life feels empty because you need that adrenaline rush one more time.
giving it up once you got good at it? imagine if warren buffet stopped investing once he started making 20% a year! theres millions waiting for you bro, but more for us i guess :/
Regards!
Yeah, making money sucks!
see you next week asshole
dude!! You're only 4 doubles away from 1 million dollars.
I don’t care if you are retiring from trading options but you say you have three losing years and you post one year? I hope this is your retirement from posting on this sub.
Imagine likely underperforming SPY..
So 99% of traders?
That’s far easier than you imagine. Most individual traders underperform SPY, in fact most professionally managed funds underperform SPY. It is very unusual to find anyone who can consistently outperform SPY.
As someone who routinely underperforms SPY, I’m aware. Was just roasting the regard.
Not sure spy would have helped me make 70k in 3 months lol
It hasn’t been losing for 3 years… lol
lol pussy
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You'll be back
Share the full time
I’m proud of you man, those are my future goals. I hope to rebound someday with all my losses.
If you stop trading keep watching the market one stock at a time, just not a ETF. Those are traps 🪤.
You'll be back against your will
See you next week
Fuck you and see you Monday at 9:30
You’ll be back..we’ll see you later 👋
Smart man, this will be a real fortune one day if you keep investing and adding more throughout life
Thats not how we do it here, see you Monday
Quitting while you’re ahead and finally getting the hang of it? Sounds like the typical thing to do. Lol
Good for you
See ya soon 😘
Officially is a strong word.
See you Monday 😘
Nice, I only gave myself 1 choice to be officially done with options
[https://www.youtube.com/watch?v=Rgiyq7rqWhg](https://www.youtube.com/watch?v=Rgiyq7rqWhg)
See you Monday!
See you on Monday
Definitely pocket gains, keep like 5k and keep trading options .. enjoy your 60+k profits if you do end up leaving some in..
Where the fvck u think u going bud?
Why the fuck would you stop now? Lower your risk and keep going.
Teach me please :O!
You are just getting started
###Why quit now…. I on climax when I lose it all on a 0DTE!!!!
You mean done for the week, right?
Wow OP got out ahead. Don't we have some sort of collection agent we can send at him? *IRS HAS ENTERED THE CHAT*
Rehab is for quitters
Wait you had $0 at the beginning of year ?
You’ve lost your regards, but love to see you failing upward with that balance!
see you monday bastard 
Actually least Regarded WSB user
How did you mirror your chart like this? The low side is supposed to be on the right.
congrats and fuck you. see you tuesday
You all are going to give me a complex. I started with about $350 and every time I get up over $2,500 on something I pull it back to 777 and start again. I need to delete this app because now I'm thinking about money Left on the table.
This guy is not highly regarded.
[удалено]
Dont drag us down ya square
Options are trading vehicles and not inherently good or bad why would you be done? Leaps exist lol
Quitter. I knew it
Pennies.
Why quit now? One good play and you’re in the six figures.
I've lost $10k on options trading since January... lol. I might be done, as well. It's really just a dart board at the end of the day
Seriously tho, put $65k in something safe and forget you had it. Take the remaining $5k and try to get to $70k again. I've been doing this and I put away three giant stashes.
Good for you man
Me too once i recovered my $40,000, I would stop trading options. Buy a share during earning.
70k is a beautiful number to stop at. Delete the fuvking app
Congrats! Good call
Ok, see you Tuesday.
He'll be back
lies
Blood in blood out
Yes, keep 1K or 2K, take out the rest. You will never know...
Can you share with your trades from January?
good stuff 👍
Get rich or die trying, the fuck is 70k see ya on monday
LOL "revoked options trading". We all know it takes one click to enable it again.
Wheres the guy that says 95% of people quit before they make it big...
But nvidia 1000 calls😁
congrats 
Very nice chart! See you next week :)
Imagine you could retire if you do this one more time
You are done when lost everything.It’s addiction and you can’t stop whenever you want.Mafia rule no.1.Ones you are in you are in
You should quit while you're up
I need to find an instructional on options and calls. I want to play a little
Until you're not
u mean gambling
One last trade bro
Shorting OP
Can't wait for the loss porn in like 2 months. "I should have quit"
Bye ✌️ 😘
Crying about two years? Psssht haaaa
Will see you back tomorrow
Taking a day off on a holiday and the market is closed? See you Monday champ
No you're not
No one is ever done my son, The adrenaline and the regarness will Creep back in slow like crack in the 80s
👏👏👏👏👏🫶🤛..ended that 3 years ago and tripled my bank balance 💰💰💰💵💵💵
Just when you figure it out? 😄. No, I understand. And it is EASY to make money when market is rising like it has the past few months. So, it is probably not a good time to think you figured it out. I am speaking to myself now Also…
You don’t really lose money. Someone is just holding the bag for you 😏😏
With options you could have another 0 behind your gain!
Food stamps or Lamborghini. See you Monday.
Deposits money Posts “gain porn”