STOP TAKING LONG OPTIONS POSITIONS

Only take short options positions.
You get all the money if the underlying stays above the strike.
This is WAY easier than expecting big delta moves to be greater than time decay (long options).
Forget about the "unlimited risk" the retards talk about.
Oh, and only do weeklies.
If you still do long options you're gay.

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>THETA GANG

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>If you still do long options you're gay.
retarded here.
could you explain in simple words why?

What the fuck is “taking” options? Do you mean writing options? You realize there are other ways to play options than writing them, yes?

Get this actual finance bullshit out of here, this board is for shitcoin pumping

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Could you explain this to me like I know absolutely nothing about trading? Asking for a friend

Forget about the unlimited risk.
Short btc now.

time decay

long / short.
your gay terminology shows you don't trade.
your trading platform should have a red button (short) and a blue button (long).
you take a position when you enter a trade

>not writing 1000 TSLA @$420 put by EOY in November of last year.

Wuss.

This is why I go long VIX futures. Easiest way to get positive vega ever

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Did you just learn about options a week ago and you’ve been spending your time between Zig Forums and that faggot-ass wallstreetbets board?

You don’t “take” options. That’s not an expression anyone uses. You’re talking about writing (shorting) puts. You can also buy puts and flip them later, so your strategies differ completely based on what type of trade you’re doing.

If you’re encouraging people to write naked puts, you’re just retarded, especially now.

While dweebs are going short options in a feeble attempt to make an income, vix future holders are literally getting paid a massive negative roll yield to stay hedged

its amazing we on a trading and business forum yet the vast majority of people here are illiterate to its basic terminology.
crypto was a mistake.

Also means you can sell SPX LEAP straddles, go long on vix futures to cancel out your IV exposure, and make relatively easy money as long as you don't forget to hedge your deltas.

To all the retards in this thread: OP is a troll, do NOT FUCKING SELL OPTIONS if you don’t sincerely understand what you’re doing. You will get crushed sooner or later in a way that literally can’t happen when buying an option. When you sell an option you are ON THE HOOK.

^THIS^

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If you sell puts to accumulate shares rather than speculate on margin, are you doing it right? Is there any other downside as long as they don't exercise?
Say I have stock X currently at 22 and I want to set my price point at 20. I have 2k cash on hand (well I guess minus the premium on one put contract).
What if the put I sold is ITM on expiry but they don't exercise? I've only been long options so far and have managed theta decently well, selling puts to accumulate and then covered calls to set a sell point seems fairly conservative.

Minimal upside with 100% of the downside of actually owning the stock. On top of that you get fucked by market makers and massive bid-ask spreads unless you trade something extremely popular like big index funds.

This. Just compare the returns of CBOE's PUT index to the returns of the S&P 500 if you want to see how well selling options work.

Selling straddles while delta hedging (incidentally the 3x leveraged ETF's are very useful for delta hedging because they have positive gamma) works better, but has insane tail risk. Look at SVXY's chart.

>he just found out about writing options
Good way to end up in bankruptcy, at least do a credit spread, covered call or cash-secured put if you're going to start writing options.
Thankfully (for your sake) brokers don't generally let newbies write naked options.
Learn about fat tail risk

Ok so basically if writing options simply to juice share accumulation and set price targets (i.e. no margin and no speculating with nakeds) they are a conservative strategy. Correct?

Yes, that's a good (and fairly conservative, even Buffet does it) strategy if you have a set price level you're thinking about buying shares at.
It still exposes you to fat tail risk, but if you write puts for companies which don't have as much systemic risk, you can minimize that issue.

More like look at XIV. The most important thing for ROI, regardless of your time outlook is maximum drawdown. Maximum drawdown on a long option is 0, and maximum on a short is exponentially damaging especially with margin.
Options/derivatives are a very ugly and inconsistent way of achieving leverage. Adopting a consistent strategy with just the standard Reg T margin account will pay off better than any leveraged ETF or option strategy in the long run.

Right. Long Vol hedge + stocks is a much more consistent way to make money than trying to sell options.

Alternatively, doing something similar to the SWAN etf, which literally just goes 90% T-bonds and 10% high-delta LEAPs at whichever strike price gives best delta when rebalancing.

double this. OP is retard confirmed

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Selling options is risky because there is unlimited downside. At least when you are buying options the most you can lose is your premium. Buying is a right not an obligation.

So we should be longing 3x leveraged etfs? Explain to me I like I'm the retard I am

I think most brokerages will automatically sell the ITM puts if they are not exercised, or they exercise them for you.

Don't explain anything to the new faggots, they're going to /wsb/ and walk in front of a train, let them study the fucking market lazy fucks

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OP wants more necks for the rope god. based OP.

Kek

Here's a neat trick for all you retards that want infinite gains:

sell puts and use that credit to buy calls. Also known as "synthetic stock". 110 IQ play

unlimited downside when you only sell naked calls. Call credit spreads solve this issue

Should I always be hedging?
Recently I took out a short position expecting a significant pull back before an eventual leg up heading into a trump 2nd term.
Allocated as follows:
5% in spxs for short term.
10% in spy oct 303 put for medium term. ITM already.
5% selling spy at 310.
Rest of worth is 40% cash, 30% long various stocks/funds and 10% PM.

Should I hedge any of my 20% short?
I am fairly confidant that markets will retest lows, if not lows something close, before elections.

You should always be hedging. Look at your beta weighting against SPY or QQQ, and it should be relatively neutral. I hedge with puts in SVXY or call credit spreads on IWM if my delta is too high. You could also pairs trade based on correlation if you want to hedge.

I truly have no idea what you just said.

>forget about unlimited risks
pic of the -800k suicide from the featherhead.

based suicide play

He said you shouldn't be doing what you think you'r doing, you'll end up doing a fucking flip from a 20 store building