Retail investor: I tried options once. Lost 80% on a call in two weeks. Never again.


Me: What was the trade?
Retail investor: A 3 week call on an earnings play. Seemed like easy money.
Me: So you took the hardest trade in the entire options market... short duration, binary event, inflated premium... & concluded ALL options are bad?
Retail investor: ...I mean, that's what everyone around me was buying.
Me: exactly... you didn't fail at options. You succeeded at proving the gambling version doesn't work. Which I could've told you.
Retail investor: So there's a version that isn't that?
Me: The opposite in every way. SELL instead of buy. A year out instead of 3 weeks. Great companies instead of earnings lotto. Paid up front instead of paying for "hope"
Don't judge all of options by the gambling version most lose at...
You didn't fail at options. You failed at gambling. Good.
Sell portfolio secured puts... the version where time & odds are in your favor.
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