/biz/ - Business & Finance

>>55831037
>you sell puts (or sometimes calls ) to retards who think it's a good idea to buy options other than hedging
Option sellers get heemed all the time, if buyers are so retarded then long puts would never end up ITM, but they do. And the probability of that happening is right there in the delta.
They can be used for hedging, speculating, or as a way to get leverage without having to borrow money, hedging isn't the only angle.
Furthermore, SPY wouldn't have such a heavy options volume every single day if they're so stupid to buy. It's not retail that's doing that, it's institutions using it as "prime material to trade". The idea that retail would be responsible for that heavy volume is laughable.
If you know what you're doing and can actually catch movements up or down and are aware of the effects of theta and IV crush, there's no reason why you couldn't trade a liquid options chain.

>>55535313
You're probably overcomplicating it, try to git gud at a simple setup like say a big ass bar or sequence of bars breaking above a moving average and closing on its high. Or below the MA and closing on its low for bear bars. Then make a decision on if you think the setup will print or not, so if you like a bull setup then put your stop a little below the signal bar and do a take profit equal to your risk. If you think the setup will fail, inverse the bracket and make the bull stop your take profit.
The secret sauce is having the intuition to consistently make good decisions and not get demoralized during the years of fighting to push forward. You need time and experience and failure to be able to read situations clearly. And obviously control risk and your emotions, use a small position size until you're more consistent.