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15622162 No.15622162 [Reply] [Original]

Is selling ATM covered calls the most redpilled strategy?

>selling insurance on fear and greed
>predictable passive income
>high return on investment
>if premiums are low you can just do nothing and ride the asset up
>receive dividends

the only downside is
>caps your gains
which is the least irritating outcome from a psychological perspective

>> No.15622468

>>15622162
I like to sell puts on stocks I would own anyway. Down moves cause bigger spikes in implied volatility so more premium.

Learn to trade options form ex floor traders
https://www.youtube.com/user/tastytrade1/videos

>> No.15622539
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15622539

>>15622162
Here's an example of a 10% return on a mining royalty company by selling puts.

>> No.15622546

>>15622468
I recognize you from the thread yesterday. I'm probably going to employ that exact strategy soon.

>> No.15622570

>>15622546
>I'm probably going to employ that exact strategy soon.

Cool I recommend starting with lower priced stocks first, depending on how much money you have.

>> No.15622596
File: 39 KB, 984x539, mux.png [View same] [iqdb] [saucenao] [google]
15622596

>>15622546
MUX $1 stock
max loss $100

>> No.15622640

Any good youtube university links to learn from the ground up would be greatly appreciated.

>> No.15622681
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15622681

>>15622640

Tasty trade is the best info
Learn to trade options form ex floor traders
https://www.youtube.com/user/tastytrade1/videos

Guy makes a million a year on 5 million consistently selling options
https://www.youtube.com/channel/UCg6XBPhtVqntGhtAblXxybg/videos

Learn from actual money managers
https://www.youtube.com/user/OpalesqueTV/videos

>> No.15622696

>>15622640
sell insurance during high premium
hold asset during low premium
that's how you beat the market

you're taking a bet that volatility is actually much lower than what people are insuring for and you profit the difference

if that profit is greater than your predicted return on holding, then it's a better strategy - that's why you sell during high premium you'll probably beat holding on average

>> No.15622766
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15622766

>>15622696
yup, this

tasty trade did a study the pricing edge for options is 5%.

the most profitable expiration to sell at is 45 days out, you get the most time decay.

just start small once you make money it'll encourage you to learn more.