how to do options trading?

I have always been curious about options trading but never bothered to look into it because I have been fucked enough by the market itself. but there is a guy who claims he is making $20k a month doing options trading. he is not one of those guys on youtube trying to sell a program. this is someone in real life who is not trying to sell anything. I don't understand the whole concept of an option, like if you believe the stock market is going to shit you buy a put, and then what? how is that different from shorting? if you can short vs. buy a put, why buy a put, what's the advantage? these are rhetorical questions, not looking for an answer to them. but my question is, is this guy full of shit or are people really making that much in options?

Yes, it's true, you can make lots of money in options trading. I lost $5k doing it. So somebody made a $5k profit

Seriously, I plan to get back into it, but to buy calls and puts to help me buy and sell a balanced portfolio of the biggest stocks.

You can buy a put for example, at a lower than the market price, when it expires, collect the stock, and quickly sell it at the market, which hopefully in this case is still well above the option strike price.

The riskier side of that is you can SELL instead of buy the put, and you get paid to take that risk of having to buy the stock, no matter if it bottoms. If it does you could be stuck with a hefty loss.

You should read ALL the books about trading options you can, and especially the recommended books by options traders, market traders, and especially the book the intelligent investor.

Wait, so you want us to answer the question in your title, and explain options to you? Or just tell you if this dude you've met is full of shit?

There is money to be made in options, yes! I dabble in them occasionally.

But consistent earnings with the market are key here.

With proper risk analyses, a healthy SL strategy and a little bit of a risk appetite - you absolutely can make money with options.

Now if you want me to explain options, and how they're different from shorts - then LMK.

gregorystephen said:

I have always been curious about options trading but never bothered to look into it because I have been fucked enough by the market itself. but there is a guy who claims he is making $20k a month doing options trading. he is not one of those guys on youtube trying to sell a program. this is someone in real life who is not trying to sell anything. I don't understand the whole concept of an option, like if you believe the stock market is going to shit you buy a put, and then what? how is that different from shorting? if you can short vs. buy a put, why buy a put, what's the advantage? these are rhetorical questions, not looking for an answer to them. but my question is, is this guy full of shit or are people really making that much in options?

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It really depends what market your in. If it's forex options it's easier to do.

BlogPro said:

Wait, so you want us to answer the question in your title, and explain options to you? Or just tell you if this dude you've met is full of shit?

There is money to be made in options, yes! I dabble in them occasionally.

But consistent earnings with the market are key here.

With proper risk analyses, a healthy SL strategy and a little bit of a risk appetite - you absolutely can make money with options.

Now if you want me to explain options, and how they're different from shorts - then LMK.

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why is buying a put supposedly less risky than shorting?

gregorystephen said:

why is buying a put supposedly less risky than shorting?

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They're both bearish strategies. The core difference is your liability.

With a put option, your maximum loss is limited to the price of the option - the stock can rise into oblivion. With a short option, your risk exposure is high - to the whole value of the stock, you're shorting.

With a PE - you always know your worst-case liability - in the event that shit hits the fan and you have to let the option expire.

With a short, you're not sure how terrible it could go. If the market takes a sudden upswing, there is virtually no limit to the amount of money you can lose.

Yes, a stop less can help. But a stop loss is exercisable in a PE option as well. So that's a moot point.

Also, I know you didn't ask for this. But ALWAYS avoid using broker margins. Those things are traps. Always, trade with the money you can afford to lose in its entirety. Yes, I know the avarice is incalculable - and the prospects are virtually boundless. But avoid at all costs.

However, the problem with options is that it's accessible to everyone - yet understood by none. Just like much of the market. So I'd advice not going for it, unless you completely understand it.

Here are the 2 rules for options trading:

1) Don't

2) Go to number 1

gregorystephen said:

I have always been curious about options trading but never bothered to look into it because I have been fucked enough by the market itself. but there is a guy who claims he is making $20k a month doing options trading. he is not one of those guys on youtube trying to sell a program. this is someone in real life who is not trying to sell anything. I don't understand the whole concept of an option, like if you believe the stock market is going to shit you buy a put, and then what? how is that different from shorting? if you can short vs. buy a put, why buy a put, what's the advantage? these are rhetorical questions, not looking for an answer to them. but my question is, is this guy full of shit or are people really making that much in options?

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If you want to learn options trading Google is your best friend.

Yes, as long as you are losing a lot of money that means others are making up to $20,000 a month

gregorystephen said:

but my question is, is this guy full of shit or are people really making that much in options

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1. Yes, people can really make that much in options.

2. Yes, the guy might be full of shit when he claims he is making $20k a month. There's no way to verify whether he actually makes it. Atleast from this thread, we know literally nothing about him.

The thing is, the people making that much in options trading are either usually institutional traders working for large hedge funds and earning that much in bonuses, or very skilled traders with years and years of expertise and knowledge.

How well do you know this guy? Do they have any such credentials?

r/WallStreetBets is the best place to learn about options trading.



Just kidding only go there if you wanna gamble. But I have to say it really is fascinating to see how lucky some guys get there.

gregorystephen said:

I have always been curious about options trading but never bothered to look into it because I have been fucked enough by the market itself. but there is a guy who claims he is making $20k a month doing options trading. he is not one of those guys on youtube trying to sell a program. this is someone in real life who is not trying to sell anything. I don't understand the whole concept of an option, like if you believe the stock market is going to shit you buy a put, and then what? how is that different from shorting? if you can short vs. buy a put, why buy a put, what's the advantage? these are rhetorical questions, not looking for an answer to them. but my question is, is this guy full of shit or are people really making that much in options?

Click to expand...

I'm trading crypto, yes it is possible, I know a guy who makes 4k/week easily, he was broke back then in 2017.

It takes a lot of time to become profitable, here is my method:

1. find your own strategy with a good win rate
2. always stick to your strategy and have a checklist before the trade
3. have a money management system, don't risk a high amount of your capital

and here are my today's profit screenshots:

Binary trading makes you feel like you're making progress until you exhaust the fund
Learn a little bit of price action to gain an edge