Originally Posted by
Finessed
I’ve never been a fan of option trading because it’s essentially like going to the casino. I appreciate your advice and agree “covered calls” would be the way to play options trading. Essentially you’re the house, and we both know the house wins (not always though).
This is the problem I have with your post. Selling a call option would result in the individual selling to write up the contract, correct?
You think a pilot like me is going to figure out how to write up a contract the likes of Warren Buffett’s math gurus write up their contracts??
a link below is the The Black-Scholes Formula used to write up option contracts
https://www.investopedia.com/article...eat_market.asp
The contract is not written and the math is done for you. Get a demo account for Think or Swim. Watch some Tasty Trade videos on You Tube and play around with it. You don't have to risk a cent to see if it is for you. Covered calls have zero risk of loss on the option, you only collect premium which helps to offset some risk on the stock. I use covered calls in my retirement account precisely because I am not willing to take big risks with those funds. It is a very safe way to improve your returns.