No. of Recommendations: 2
Those factors should be trivial if one is trading on the opposite side of "the worst retail strategy there is, bar none" using heavily traded options.

Well, it's quite possible for both sides of a strategy to be losers (overall). The problem with selling options is that the gains are frequent although small, and the losses are infrequent although large. It is easily possible to lose more money on one loss than you made on the previous 15 wins.


the majority of purchased options expire worthless,

This doesn't mean what you think it means.


you can still make annual returns of 15-20% doing nothing but being a net seller of options.

You really think so? Does Goldman Sachs know this, and why aren't they doing it?
The options market doesn’t give money away for free.
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.