Originally Posted by
JamesBond
imho, people way overthink options trading. All these complex options are a waste of time and limit your income. The best phrase I ever read regarding options, and it is absolutely 100% true is that 'you never make money buying anything'. Sell puts.... sell calls.... make money. dyodd, ymmv, etc etc etc
That’s exactly right.
Owning the underlying stock and writing covered calls and put contracts. Especially on the weekly level or a few days out from monthly OPEX.
Another thing—back in March opportunities presented themselves that we haven’t seen in a while. There was a market wide fire sale in March.
For reference (these were purchases I made on 3/18/20).
BA 3/18/20- $100.79 Close today 12/16/20- $227.03. I sold at $177.50.
LYV 3/18/20- $25.54 (reference CEO and Mark Cuban, I am not that smart. I just followed the money). Close today 12/16/20- $73.68. (Still holding).
PTON 3/30/20- $30.00. Today’s close $133.92. (This is a grand slam—still holding).
V 3/18/20- $146.61 will hold forever. Just added at this price.
SBUX 3/18/20- $52.36. Close today $103.27. Still holding.
These types of opportunities when presented allow options traders to buy calls far out that are almost guaranteed and make thousands and thousands of dollars.
If you have the money—you buy the shares, and write contracts for some passive income as we go along. I’ve been writing puts on the above basically since acquiring/adding in March. Just a bit behind how I think and trade. Love love love talking about this ****.