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
yep; selling premium is the way to go. But adding a long put or call to cover the short contract to limit your downside and preserve buying power is easy to do. Managing buying power is the other half of the options battle.
One of my favorite ways to trade is around earnings due to increase volatility. Writing an iron condor or iron butterfly and targeting a 20-30% profit the day after earnings are released is pretty easy money. But, its complexity over say, a naked put, makes managing it if the stock blows out one of the short contracts a bit of a PITA.
I declare a complete deviation from the “side hustle” topic.