Originally Posted by
Finessed
“Hate” is strong stance I’d stay away from that. The conversation was specifically over “covered calls”.
Buying Option Calls or Puts is literally the same as going to the casino. Technically hedgies use it as a “hedge” but unless you have a $100,000,000 portfolio what are we talking about.
I have bought or sold a single Option ever, as you stated I’ve heard all about the horror stories of the Robinhood investors buying up options and getting completely bankrolled.
I disagree. Options trade right along with the underlying security. You get control of a lot more stock for a lot less money (if you buy.. which I don't, but that is another strategy) So if you think investing in AMZN or AAPL is going to the casino, then I guess I might agree, but going long on those two has not been disappointing. When a stock is going down, and I have sold a put option, I feel a lot like Wally Schirra in Gemini 6 when the motor shut off at T minus zero. Or like playing chicken with submarines in Hunt For Red October... you have to know when to blink. But to me, poker is random gambling no matter how much those rednecks on ESPN say otherwise. IT doesn't take a $100 million portfolio either. Jan 15th AMZN 3050 Puts are selling for around $50. That's $5,000 per contract in a little over a month. Just sayin. dyodd, ymmv etc etc