Do any of the experienced and consistent traders here make their money by selling or buying options? I know that selling options/spreads is a pretty consistent method, but are there traders here that buy options/spreads and stay profitable on the long run? Or traders that use a mix of both?
What are your strategies, and what do you usually look for before opening a trade?
Do consistent traders make money by going long or short on options
byu/DarthRevanGonk inoptions
Posted by DarthRevanGonk
4 Comments
I’d be interested as well since we almost never have someone who has a proven trading plan that shows long term success buying options.
It is simple in that that buying requires accurately predicting what the market or a stock will move, and by how much plus when, plus there is not the adjustment techniques to recover and troubled trade without putting more money at risk, so it is very hard to do.
Selling is more consistent as you don’t have to be accurate predicting what the stock will do and has multiple adjustments that can be made to lower risk so is what most consistent traders do. Check out r/thetagang where most who sell post.
I make on average 15k+/month and I buy options. Don’t own any long term investments and don’t sell options at all.
If you only go long or short you are giving away half your market and profits right there.
Recently, there was a very interesting post about a possible strategy using leaps puts. I made a note to check it further when time allows.
But there is no info on long term results
https://www.reddit.com/r/options/s/kwUZa0vBcU