/biz/ - Business & Finance

>>970908

Decided to give an update. I did 2 more options trades this week and had a 21% return. (pic rel) All NFLX puts. I reiterate, there is a ton of cash to be made in options and the volatility on NFLX in the morning makes it almost impossible to lose. I'm on track to do over $4,000 in profits this month in total.

A few things I've noticed. Scaling is something I'm going to have to try to figure out. With normal trading, I usually just trade each position with ~$50k, but with options, I can control $300,000 worth of stock with only about ~$5,000. Obviously, I could get into serious trouble if I put most of my money into a single options position so I'm still trying to figure out the best size for me right now.

Next, the major difference I've noticed is that with stocks, if you're trading a blue chip and the position turns against you, you can hold for a few days and see if you can make your money back. With options, you need to be really good at taking losses early. This is why I believe I wouldn't have been good with options when I was first starting out.

Next, buying far out of the money options hoping for a big move is not my style. I've been trading in the money options and keeping them for no longer than an hour.

Options are fun to trade. The amount of money you can make is on another level. You really need to be strong mentally to not put like $20k on a position and blow your account up.