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    Option Gurus’s

    Are there really people out there that always make money in the market and have made so much that they just trade for the fun of it given how great they are? If so, how did you become that great at options? Care to share the wealth secrets so others like me can also benefit..

    Option Gurus’s
    byu/InformalCookie4839 inoptions



    Posted by InformalCookie4839

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    4 Comments

    1. bdh2067 on

      Rule #1: don’t blow up your account. Make small bets until you know what you’re doing and have confidence that you actually know what you’re doing.
      Rule #2: don’t revenge trade or get emotional – when a trade goes against you, close it, learn something and more on.
      Rule #3: read, learn, observe, watch, read some more, don’t react too quickly or out of FOMO when you see someone talking up a “sure win.” Keep reading, learning, etc. join a platform like options play or the myriad others (but don’t take them as gods or even gurus – they’re human)
      Rule #4: see rule #1

    2. ScottishTrader on

      I’m not a “guru” which has a negative connotation, but I have traded “full time” for many years with options being a large source of income for me.

      1- Treat trading like the business it is. Sure, it can be fun, but it is not a video game. Learn how options and any strategy you use works and track performance returns over the years. Many can have great success over a few weeks, but few can have success over years as the market changes.

      2- Make and follow a trading plan that spells out what to do and when. Those who are successful have a well thought out trading plan that they follow. Those who “wing it” without a good trading plan will lose or have unpredictable results.

      3- Understand and manage risks. While this is #3, it is the most important. Many new traders focus on profits and making 100% per year returns and then often have losses or blow up their accounts. Successful traders carefully manage risk and accept smaller returns in exchange for taking less risks and have fewer and smaller losses when they do happen.

      Get and read the book Trading in the Zone by Douglas as it will lay out how to treat trading like a business.

    3. leaveafterappetizers on

      I would not call myself a guru but I stopped losing money about 2 years ago.

      My rough set of rules are as follows:

      I consistently add cash every pay period to my brokerage so that I have powder when needed.

      I add to my long positions when the stock drops to a pre determined price.

      I only sell options. I do not buy them.

      My most profitable strategies are CCs and CSP.

      I always sell CC above my cost basis.

      I always sell CSP at strike prices where I’d like to own the stock. Sometimes I use CSP to add to my long positions but usually I just buy the stock.

      I almost never sell anything below 30dte. I often sell up to 1 year dte.

      I look for annual adjusted roi to be greater than 15%.
      I figure if I do this, I’ll double my $$ in 5 years. I’m happy with that!

      I rarely withdraw, I always reinvest the premium collected into more positions.

      I am trying to do this full time for income in the next 5-10 years. The most important part is to preserve my capital and not lose money. I am trying to invest in sound stocks that are decent for selling CSP. I am currently working on diversification across different market sectors. My goal is to not have more than 15% of my total capital tied up into any one stock.

      I pay attention to my emotions and I don’t trade if I find myself frantically researching a new stock and scanning the option chain.

      All pretty standard but there you have it.

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