Retail investor: I sell weekly puts. 52 paydays a year baby!


Me: Quick question... what's the market doing next Tuesday?
Retail investor: ...no idea. Nobody knows that.
Me: Correct. So why is your entire strategy a bet on next Tuesday, 52 times a year?
Retail investor: I mean... the premium adds up.
Me: One bad week wipes out months of those little wins. & you KNOW a bad week is coming... you just don't know which one. That's the trap.
Retail investor: So what's the alternative? Just not trade?
Me: Go LONGER, not shorter. I sell puts a year out on great companies below what they're worth. Can't tell you what happens next week... but a cheap, elite company being higher in a year or 2? That I'll bet on all day.
Stop betting on the week nobody can predict. Bet on the year+ that great companies almost always win.
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