/biz/ - Business & Finance

why the racism?
This is a friendly board

>>53877814
There was no Neanderthal DNA in sub-saharan Africa prior to European contact in the 1800s. Black Africans are the only "humans" in the world that lack some mixture of this DNA and they have a large percentage of genes belonging to an extinct hominid species that isn't in our DNA. Different species really.

If you sell puts you can add 2% on average to your annual returns, so I have read.

>>53877814
> seeing opportunities pass by
does he mean the same "opportunities" that made him get rekt?

>>53877814
yes
i have no idea why there isnt more effort dedicated to learning options and ta here, it will actually make you money, unlike bulltarding funny money that goes up once every four years
paper trade it and see what happens

>>53877814
don't do it bro. i can tell just by your attitude you'll fuck yourself

>>53877814
>glancing at the charts and seeing opportunities pass by
yeah I know that feel.

>>53877814
I started two months ago, still while balancing a job.

I've made correct calls, but I've left money on the table by getting out way too early or staying way too late. I still am figuring it out.

Buying puts and calls is gambling imo
But lets say you like a stock at $50 and want to go long 100 shares. You could buy 100 shares for $50, or, you could sell a cash-secured put for 2 Fridays from now and your counterparty will pay you $100 in cash, right now, on the condition you buy 100 shares two Fridays from now for $50 a share each.
Selling options is the way to get into the game long-term and make a lot of money doing it.
Thing is, most apes don't have the patience. Sad, as the Buffet said the stock market is nothing more than a device that transfers money from the pockets of the impatient to the pockets of the patient.

>>53877814
When I first started trading I learned the ropes of the stock market and soon after I learned how to options trade. I had about 5k I put in, and learned with that (options). I ended up blowing everything up and ended up with only $500. Then I took a step back and applied what I learned while learning new ways to think of the market and took my portfolio to about 20k in a couple months. Things were going great, I then took my 20k and loaded myself up with "sure thing" options. This was about 1 or 2 weeks before the march 2020 lockdowns. The prices dipping, for even a second (with volatility going insane) absolutely wrecked every option I had, even the -in the money - options I had were nearly worthless. I ended up losing everything because of the volatility. The prices moved exactly as predicated on many of my plays, but because the other greeks didnt line up properly, the options I held were worthless. Its extremely high risk and like
>>53880287
points out, its pretty much gambling if youre buying FDs. Now there other side of this is "proper" use of options. Strategies like covered calls, hedging a position with an appropriate number of puts (1 per 100 shares)...These strats can really help flesh out a portfolio and minimize near term losses.

>>53880359
Its a whole different kind of demoralization when you see the underlying asset for your $100 call hit $102, and youre still losing money because the price didnt move into position fast enough to counter the vega.

>>53880287
Nobody wants to buy the stock at 100. everybody wants the lowest price.
Selling options is as unprofitable as buying if you are stupid. And everybody is stupid

>>53878973
>options and ta
Is ta in that context actually useful? I'm willing to believe it.

>>53877814
>is it really profitable
Lmao no. When you're buying options, you're buying insurance. The market maker is the insurer. When you try to make profit from options, you're betting on outwitting the insurer in the insurance business.

>>53881831
It'd be useful it TA were able to predict the price of the underlying asset (it doesn't). If you add options on top of that, you have to factor in delta, gamma, and theta too, and nobody knows what the fuck those are. Your basic method already isn't working, and then you add another product with a poorly understood correlation on top of that. You might as well buy scratch offs, at least they don't cost you tens of thousands of dollars at once.

>>53877814
totally possible. only pick the best trades, dont over trade, control your risk. options can go 2x-10x or more if you've got the trade right.

>>53877814
It's harder than leverage trading in crypto

>>53877814
i dont do options but i do make a living trading cfds

>>53877814
Unless you are a 50 IQ sub saharan neanderthal it is not probably profitable

>>53877888
>If you sell puts you can add 2% on average to your annual returns, so I have read.
picking up pennies in front of a steam roller
>>53878973
>ta
TA is completely useless, it's 100% backwards looking and useless as a predictive tool. Even in the best case it's no better than just predicting that things will revert to the mean, which is usually correct. Until it isn't. Which is really no better than chance.

>>53878973
this and risk management. small losses and big wins

>>53883238
>TA is completely useless
Oh boy, what is your million dollar strategy then? Discounted Cash Flow analysis of shitty meme stocks? Get the fuck out of here. Even the most experience of Hedge Fund traders have at least a moving average or two plotted on their charts.

>>53883238
>ta is useless
lol, lmao
yea only ta you need is "moon every 4 years"
keep dcaing buddy

>>53881831
yes, especially during big volume market hours it helps
if you doubt, just try and monitor emas and historical buy/sell levels, and see how it moves day to day

>>53881890
>i cant greeks
you probably cant read either, if learning basic fundamentals is too hard, you should probably not be investing money at all. or resign your fate to crypto and keep praying

>>53881906
Options are very efficient and if you just learned a bit of fundamentals you understand it's much easier than leverage trading. Look at the stock market, options are being traded far more than any other derivatives.
Anon, If you are reading this I highly suggest you to start to learn a bit about options fast, as there is so much insane fucking alpha still in the crypto space regarding options. On chain options are quite inefficient still while options itself are very efficient, you start to understand what I mean?
If you want you can try out kyc free on chain options trading on premia to get a good feel for it if you're just starting out, may have to use a vpn. Just use a few bucks and fuck around with the UI to get an understanding.
If you want to speculate on which crypto options platform will outmog the rest, it will be premia, v3 > all others.

>>53877888
solid, truth-trebled financial advice. impeccable delivery. 10/10, would read again.

>>53883296
quantative analysis

>>53877814
>studied TA for 2 years
>got a USD loan
lol

>>53877814
Question is how much money do you have and what is your strategy with it? From there you can just rationally evaluate your position. If you have $5,000 and you want to win the lottery with a 100x or something, you're gambling. Getting rich with a small sum of your own money and a lucky bet is possible, but unlikely and you will probably just lose money doing it.

But maybe you just want to eek out some consistent alpha? If that is your goal I think you need to consider where the value actually is. A history of alpha is what everyone wants and most people can't achieve, including the professionals. If you can achieve consistent alpha, even if it looks small to you because of your small amount of money, like 5% over the market or something, then you can make a lot more money by selling your services to rich people. A history of 5% over the market could be very valuable, you may have only scrounged a couple hundred dollars out of it but if you can sell yourself as well a professional may look at that and trial you for handling more money. If you can continue to perform then you'd be making 6 figures and bonuses easy.

But that should also give you an idea of what is difficult about any trading. You consistently making chump change on managing your own portfolio could be worth a 6 figure salary, if you can demonstrate it isn't dumb luck. In a sense, your alpha is already leveraged by the opportunity of just continuing to perform. It isn't a very liquid asset, since you have to be able to present yourself to people and show them that your skill with your own portfolio can translate into asset management for larger sums, which would largely involve showing that you've got value as a learner and you don't buckle under pressure. But it's basically your primary way to translate alpha on your little portfolio into big money with some predictability. Achieving 10x or 50x or whatever to snowball to eaely retirement kind of wealth is not reliable.

>>53877827
>on 4chan
>friendly board
nigger please