Thread: Side Hustle
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Old 12-13-2020 | 05:44 PM
  #273  
mispoken
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Joined: Feb 2011
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Yes, I’ve been able to build enough capital in my trading account where I can increase trade size while keeping risk roughly the same on a percentage basis. However, I spend a lot of time managing trades. But it doesn’t have to be that way. You can simply sell a put spread, enter a good til cancelled order to close at a profit target and check back at 21 days until expiration. It can really be as complex or as simple as you want.

It is a common misconception that options trading is a zero sum game, it’s not. You can cap your risk and trade probabilities (tastyworks makes it very easy to understand probability of profit on a given trade). The key is to make these high probability trades often so the probabilities can work themselves out in your favor.

Inside of my brokerage link, I also purchase LEAPS calls on my favorite investments. This is arguably the riskiest type as you are BUYING premium and time decay works against you, slowly eroding the value of the contract. Yes, I’ve lost 100% of my premium doing this. But I’ve also seen my largest returns.

All that being said, your best bet to last in options trading is selling premium on high probability spreads or naked puts.
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