Retail investor: I trade short term options. Faster expirations, faster money. More theta.


Me: How do you know which way the stock moves in 5 days?
Retail investor: I read the charts, watch the setups...
Me: Be honest. Does anyone actually know what a stock does next week?
Retail investor: ...no. Even when I'm sure, I get it wrong half the time.
Me: Right. The short term is pure noise. So selling weeklies is just guessing a coin flip 52 times a year.
Retail investor: & you don't do that?
Me: I sell portfolio secured puts a year+ out. I'm not guessing next week, I'm betting a great company bought below its fair value is higher in a year. THAT I can be confident in. Bigger premium, way less stress.
Don't bet on a short term move literally nobody can predict...
Weeklies are a coin flip you take 52 times a year.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned