New to options trading, been following this bowl a while and trying to get educated with courses on options alpha and TD Ameritrade. How many of yall are able to make consistent extra income from options trading? I’m not expecting BC wins but was hoping after some practice for a little side income to make the no raise year a little less painful. Just wondering if it’s more of a gamble then anything except for the exceptional few...

like
Posting as :
works at
You are currently posting as works at

I’d recommend either 1) own equities and sell OTM covered calls with low probability to finish ITM or 2) sell OTM cash secured puts on stocks with long term value which may be trading at a discount right now.

Scenario 1, you hold the equity long term and try to pad your gain with the premium collected, and if equity swings to a loss, the premium you collect will help offset that.

Scenario 2, you hold cash and collect premium as your return until a contract finishes in the money where you might get a good deal even cheaper. Risk here is company goes belly up or drops significantly and you have to buy the shares and start position at a significant loss.

Scenario 3, you do both for the same equity position. Sell puts at your dollar cost average price and collect premium. And sell covered calls on current holdings to collect additional premium.

likesmart

This is the way if you have enough cash to buy equites and collect dividends. Also consider selling a put to reduce cost of entry use it as a limit buy.

@sm1 how are you selling puts against your long position? Put selling would need to be cash secured and tie up margin as you would be on the hook to purchase itm.

Overall love this strategy, working my way out of futures trading and into a few good tickers that will allow me to sell calls.

SM1 has solid ideas.

The other one that many use for income is selling credit spreads on an index - usually SPY or IWM. Tasty Trade has some good stuff on this strategy and how to run the trade. I haven’t done it yet since I’m still jumpy from March and have have been doing well on covered calls for core positions and call spreads on non-core positions.

like

Watch blue collared investor on YouTube, breaks down selling covered calls easily

I make 2-4K a month swinging stocks not options. At least I can sleep stress free swing trading stocks also. Hate volatility of options. I follow a couple of services and pay a small monthly fee to get buy/sell alerts. They do the work I reap the gains (and they as well). I tried options and wasn’t for me and needed too much attention. These service have no chat room and just an alert.

The environment has been great tbh for swing trading (equities or options). I started with 24k around mid jan and I’m abt 41k. I wouldn’t expect these returns in a normal environment.

D2 - would like to answer your question but I don’t understand it. How do you adjust for covid? In my mind a return is a return until I start losing money on trades no matter covid or otherwise.

Happy to answer anything else anyone may want to ask

like

SM2 which services do you follow?

I’ll dm you

Related Posts

I started a few new business ( with debt) this year, and because the way my taxes looked with other losses it looks like I didn't make a ton of money. Now my credit dropped from 800 to 720 and I'm having trouble getting credit. Despite having a perfect payment history and fully able to cover all liabilities. Any way to get the credit up. If I pay off my liabilities then my credit history gets shot with young accounts. What's the best way to handle this?

like

How does a promotion happen in Nagarro? Do you have to set expectations straight with your manager, or do they consider it yearly as part of some cycle like salary hike? Is there anything one has to do, like a presentation etc. for a promotion? Nagarro

like

Hi everyone

Is there any disadvantage if I get relieve on Friday compared to on Monday?

What I am thinking is I will be loss pay for sat and Sunday?

Actually my last is 27th
I asked for a week early relieving so thinking about this.

Thanks.

like

If I were to start talking/applying to other agencies in my network, would that news reach the HR department at my current agency and raise alarm bells? Just curious how that works.

like

Which side wins the trade? Justin Jefferson, Aaron Jones and AJ Dillion for Mark Andrews, Derrick Henry, & Alvin Kamara?

like

Has anyone here used New Western to buy real estate deals?

like

What are some of the things to keep in mind when leasing a new car? What are some add-on that can be negotiated on?

like

What’s the fastest WI-FI provider in Austin? I have Spectrum abs it’s not fast enough for my house of 5

like

How do I start building rental property portfolio so I can FIRE?

like

Colleague has put in his resignation. They are offering him whatever he wants to stay including 4days a week work from home. He’s not bluffing and plans to leave. However, at this same time I was asked to begin working as a supervisor for the engineering team and I would get a promotion at the beginning of the year. I have been supervising and managing our team of 6 for months with no extra pay or bonuses. I was told yesterday that raises will be light this year. Yet today they spare nothing.

likesmart

HYSA anyone recommends?

like

How to transfer PF fund from hcl to epfo if i was a non pension member???

like

Does the UK have tax breaks for people with kids, mortgages, etc. like they have in the US, Singapore, etc.?

Does anyone think there is long-term viability in Cryptos?

like

Happy to have just received my promotion to senior manager after a very challenging year, backed by an even more challenging year prior.
I've got my own beliefs what a senior manager does, or should do. I'm keen to hear transition challenges others have gone through when becoming a senior manager.

like

Anyone have experience with Donut app? And their 4% APY? Had any issues pulling money back out? Whats the risk here?

like

Hi all, I am trying to DCA bi-weekly into Vanguard ETFs, (VO, VTI etc). It seems like Fidelity does not support auto buying of non-Fidelity ETFs. So I was wondering which of these options you think is best?

1. Open a Vanguard Invest account
2. Look for Fidelity ETFs that are similar to Vanguard ETFs
3. Use smaller brokerages like SoFi l, Robinhood etc.

I really do not want to manage nor be active. My goal is to log-in like once every 6 months.

Thank you all.

like

Hi everyone, I’m an architectural designer (from Europe) with 1.5 yrs experience. I’m working for a practice in San Francisco, full-time from the office, getting 25 an hour. It is so expensive to live here, I am struggling to make things work. Is this a normal salary for someone of my experience or should I ask for a raise? I don’t want to be greedy but it’s so expensive out here… Thank you 🌈

likehelpful

Sinple advise those who are waiting for SA promotion... whatever package u r getting as A you will get only 15% hike for promotion to SA...so it's nt at well worth, Better switch.

like

How much are you contributing to your 401k?

More Posts

Are those of us on H1b/F1 allowed to enroll in community College for any courses? The one near me has a motorcycle training course that waives the skills test for 1/3rd the price of its competitors

like

Anyone use financial planners or wealth managers? Pros / cons / considerations / recommendation for one in NYC?

like

Hi, I am looking to add a lateral practice group, got burned by a recruiter recently. What should I be looking for

like

Solo trip to Puerto Rico. Any recs? Thanks fam.

Where the Asian Americans at!

like

I think there should be more males caretakers in this world. Some of my clients just feel more comfortable with a guy and it's kind of sad how often they say I'm the only male they could find.

like

Hi team, Cgi is hiring for below skillsets: Senior java developer ( Java 8,11, spring boot, Cassandra, MQ, TSQL and cache )

Java and unix

Automation Test lead

Informatica, ETL, SQL

IOS, Swift, objective C

LDAP OSB, SQl

Forgerock IG product

Please dm me if you are interest in any of the above positions.

like

Sick of writing emails client-side all day and can’t seem to get into an agency. What’s another career path for a copywriter? Getting too old to try and become a teacher or anything.

like

Hi Fishes,

I am 3.6 years experienced QA Test Analyst looking for referrals and job change with good compensation
Please help with refferal and openings
Thanks everyone

like

Anybody aware about National Australia Bank ansr.I got selected for the senior customer executive position. Need to know about culture , Gurugram office location. And salary slab for the profile as I have total 5years of experience

What's a good replacement for my daughter's old Ford Fiesta? Not much of a car nut but my ex-husband raves about this page so I joined up. Fine with a used car or new, just want a similar price point and keep it small, she doesn't want an SUV. I was thinking a newer model Kia soul maybe?

like

Client is requesting a monthly newsletter for project activities. What would this look like beyond a different way to communicate a status update?

like

I saw 2 posts earlier about the show "Ultimatum" on Netflix. Can't pass up trashy TV and started watching. Just finished episode 3 and loving it! Considering cancelling tonight's plans so that I can binge the rest of the season before bed.

Spoiler alert, stop reading if you care
.
.
.
.
.
.
.
.
.
WTF was with Nate's proposal?

like

I thought that the occasional visits from the recently divorced single mother that moved in down the hall was the best thing that ever happened to me. I was wrong, getting that mouse jiggler is the best thing that ever happened to me.

funnylike

Jan 6th check in. How’s your workout?🧐

like

My brother got me a weightlifting belt
Unsure if I need one or when/if I should use it
Any advice?

like

Ladies, I am F in my late 30s with fine, medium-length, flat hair. It’s been thinning and feel like I am losing a lot of it.
I’ve tried oral supplements but it didn’t do much to help (just grew hair on my face instead 😳). Any recommendations that might have helped you with the same issue? Anything topical that worked for you?

like

Any diverse firms in Chicago with WLB?

like

We’re hiring across a variety of roles. If one on our site catches your eye - happy to refer if you DM! 😊

likefunny

If I did good on the first two interviews but just “okay” on the more technical third interview do you think I still got the job?

like

Additional Posts in Option Traders & Investing

$DPZ 370c 3/27

like

2/25 Thread (General):

likehelpfulfunny

What’s does “fill the gap” mean??

like

8/12 Thread (General):

like

3/29 Thread (General):

like

$BABA got murdered today. Buy, hold, or sell?

like

For the noobs - remember if a stock goes up quick, it can go down quick. Good day to buy more!

likefunny

Anyone else think big end of day drop? Scary weekend to hold long through

like

I have just got an options trader job at a prop trading firm. But I knew nothing about options/trading/finance. The firms said they’ll be officially training us once we start. But in the meantime, what are some books/resources that you would recommend to start learning first?

like

Super risky play: If you have day trades available, I suggest buying 250 3/20 calls at open and selling right around 11:30 when trump speaks. So far every time there is a conference we see a pump.

like

New to options on fishbowl - I have a call itm with Robinhood that expires tomorrow. If I don’t sell it, what happens? Will they exercise or am I better to sell it?

like

I’m seeing lots of posts about really bad losses. If you trade you’re going to lose money - hopefully not all the time, but many positions will be mistakes. But you need a process to find ideas and manage positions. Two books you should read are “The New Trading for a Livinng” and “The Laws of Trading.” Both look at psychology, process, and risk in different ways that can help you work out your own process. The next 18 months will be much harder than the last 18 - time to start learning.

likehelpful

Noob question on selling puts- I just sold a weekly put that I WANT to get assigned. The stock fluctuate a few dollars a day so I’m looking for a specific price to own the shares at vs entering a limit order. The stock has already gone below my selected strike price by a 30 cents today but I haven’t been assigned the shares 🤔. Is it only by expiration day or am I missing something?

like

Anyone going in on VNET?

like

What do you guys think about Investing in palantir which IPOs tomm?

like

My play for next week:
Sell the SPY 200 puts since the market would plummet. Look for opportunities to buy back, probably when the stim bill passes. Would love to hear your thoughts on it

like

@BC what do you think about SHOP puts?

like

MOMO reporting tomorrow - anyone know why this hasn't seen the same run up other tech has seen before earnings? Low P/E and consistent earnings - but analysts sentiment seems to not be as enthusiastic?

like

Looking for some interesting plays that are not Doge, GME, etc (already in those 😅). Thoughts?

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Scan your QR code to download
Fishbowl app on your mobile

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal