Why You Won't Make Millions With Options

Millions on options. That is, unless you can overcome a few psychological hurdles.

And she does it without betting where the markets will go. Instead, she takes a mathematical approach to trading by selling way out-of-the-money puts and way out-of-the-money calls —a super wide strangle.


Example So if you imagine an index trading at for simplicity purposes. What Karen does is she bets that the index will indeed stay between 85 and However, whenever the mathematical probability increases, the amount of money you can make from that bet gets smaller and smaller. Like a lot — in order to execute one of these trades. The numbers might even be more — depending on the trade and the brokerage house. For most retail investors, this is not a good idea.

This changes the game — as Karen says in the video.

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Her 85 strike put has a 2. This differs from how most options beginners are taught to trade. Most options beginners are told to sell a strangle as a single trade.

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And if it goes bad, then cover the strangle at a loss. But Karen manages it differently.

  • If WSBgod didn't sell the positions on Tuesday, the trader stands to lose a large portion of their profits from Tesla's Wednesday tumble.
  •  Espera! - крикнул он ему вдогонку.
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She treats each side separately, individually. She might realize the gains on the call side and re-initiate yet another short call.

LinkedIn0 A few years ago inI planned to make millions trading options. I had been searching for a way to invest my money and create multiple streams of income. I began to look for an investment where I would not have to be a day trader nor would I have to wait years to see any substantial gains. I read everything that I could get my hands on regarding different investing vehicles. I poured my heart and soul into my research and spent many hours reading and studying.

So by constantly adjusting when needed — she is able to be highly consistent. Instead, we do the next best thing — which is super wide iron condors — which effectively mimic super millions on options strangles.

  • Семистраничная доктрина сжато излагала программу его работы: защищать системы связи американского правительства и перехватывать сообщения зарубежных государств.
  • Но звук так и не сорвался с его губ.
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But hey, this is as close as you can get to her strategy — without constantly monitoring and adjusting on a daily basis. So how exactly are we implementing this strategy?

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We have a bit more of a directional strategy and we use weekly options rather than monthly options — so we generally get results within a week or so.

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Chemical Mining Co. You're paid a nice premium, and the options expire without being exercised, so you pocket it all. Then you repeat the process again. After several months, your options are finally exercised, and the underlying stock is called away from you.