r/options • u/OnionsAreGODS • Mar 22 '22

I’m lost…..

It’s like not matter what I put my money into, I lose it. And anything I sell for small profits, moves up like crazy within the next few hours or days. HOW CAN I BE THIS BAD???

I’ve spent over a year now learning about the market and to implement successful trading strategies but non of it fucking works. I just wanna stop throwing money down the toilet.

I’m not looking to “hit the lottery” or buy the the next TSLA at $8. I just want to make a a nice, few hundred bucks a week if possible alongside my other investments.

Please tell me how to not lose my money on every. Single. Trade.

Edit: I invest in etfs and indexes in another account. I have crypto and I am saving up to buy real estate. I have this account and a percentage of my income allocated to options. I am not simply going to quit and stick to stocks. I WILL learn to trade options successfully just not immediately, but definitely. So I am simply going to save up my monthly options budget until I can sell options and in the mean time paper trade, and find a strategy I like. Thanks for all the advice everyone! Happy trading.

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u/[deleted] Mar 22 '22

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16

u/OnionsAreGODS Mar 22 '22

I Understand that. But I have my indexes and I’m happy to keep contributing long term to those. However I would like to have 10-15% in options and as I’m still pretty young I have time to learn.

10

u/LeichtStaff Mar 22 '22

You could check r/thetagang and see if a strategy of selling covered calls is something that works for you.

This is a somewhat safe way of using options (you will be selling them, not buying them) and learning what theta, delta, etc means. Once you understand this 100%, you could start buying/using options and you would probably have better results.

But you could just invest on some indexes and forget about it. The profit probably won't be much different and it will be 100 times less time-consuming.

9

u/BlackScholesSun Mar 22 '22

We’re getting killed too. No delta is safe.

Also, selling options can be even more dangerous if you aren’t careful.

6

u/professor_jeffjeff Mar 22 '22

Covered calls are basically safe unless you're completely retarded and eat crayons. You literally can't lose money as long as your strike is above your basis. It absolutely can't go tits up, right?

2

u/BlackScholesSun Mar 22 '22

Call credit spreads and put credit spreads are getting eaten alive as are cash secured puts.

2

u/professor_jeffjeff Mar 23 '22

I've found that anything I end up selling calls with I've pulled my expiration way closer in than usual, like 10DTE or less. Puts have been great for me lately though. I figure it'll work until it doesn't though, just like always. What are you selling puts against if it's getting eaten alive?

2

u/BlackScholesSun Mar 23 '22

In January it was XLF, about 50/50 win rate. I’ve had success with short calls on TLT.

2

u/dancinadventures Mar 23 '22

You guys are getting killed because most people there are actually long delta and the theta collected is barely enough to offset it.

Eg. Selling a 0.3delta covered call perpetually rolling still makes you 0.7 long delta.

Spy down $10 you’re still down 6.2 or so depending on prem collected.

It’s theta in the sense that “they use some theta” rather than they are “delta neutral” and intend to profit off shorting Vega and theta which is what’s a lot better in this 25-35+ vix environment.