Is consistent option income possible?

and your 12th trade will blow your account.

seriously, please give me an example..
 
if u r a successful trader u wouldnt have ask this q.

if u r a trying to become successful trader u wouldnt have ask this q.
so, what are u?

it works like this 1/12 + 1/12 + 1/12 + 1/12 + 1/12 + 1/12 + 1/12 + 1/12 + 1/12 + 1/12 + 1/12 + 1/12 - 1/12 = 11/12
+ ~ pausing

example :
20100610.0813 EURUSD b.GT.12050 ... no top
20100610.0901 EURUSD b.GT.12040 ... no top
20100610.1006 EURUSD b.GT.12020 ... no top
20100610.1023 EURUSD b.GT.12020 ... no top, R.exp.4.NOW!
20100610.1115 EURUSD s.LT.12070 ... top
20100610.1132 EURUSD s.LT.12080 ... top
20100610.1254 EURUSD s.LT.12040 ... no bottom
20100610.1305 EURUSD b.GT.12050 ... bottom
20100610.1329 EURUSD b.GT.12030 ... bottom
20100610.1336 EURUSD b.GT.12030 ... no top, R.exp.4.NOW!
20100610.1518 EURUSD s.LT.12090 ... top
20100610.1539 EURUSD b.GT.12100 ... no top
20100610.1548 EURUSD s.LT.12112 ... top
20100610.1558 EURUSD s.LT.12121 ... top
20100610.1711 EURUSD b.GT.12122 ... no top
 
Last edited:
rathcoole_exile said:
of course there is a surefire way of consistent income.

it's just that most of us prefer a challenge so we ignore the sure things and trade the more difficult markets/instruments/methods/styles. Just for the hell of it like.
Click to expand...

:LOL::LOL::LOL:
 
Hoggums said:
Easy but risky. If you had written Jun expiry ATM Puts in late april at 5800 you would be sitting on a huge loss now.
Click to expand...

Or just to sell any of the Close ATM BP over the last few days. down 15% up 10% you would have been crushed by Whip


I'm never selling anything closer than +-10 to 15 deltas (unless it's a CoveredCall)

So that way I've got huge room for rolling and management if and when they get close. Thats where I like to play in the street. Most Spread traders I've run across stay about this far OTM as well. Anything closer it's Whipsaw City.
 
Last edited:
serious, selling 10/15 delta p/c is your primary methodology.

back to d1ckhead's post, 11 times from 12 it makes money and the twelfth it wipes your account. by their nature the outliers kill you. put skew is bid for a reason (index) and calls are crap for a reason-your only plus point in selling calls is they get smacked on a rally so yuor vol negates your delta 9assuming you are not gamma-hedging)
 
If the play (Credit spread) runs in on ya, you need a walk away point. Unfortunately that discretionary.

For some its +-30delts (individual stocks I loosely follow this depending on the charts)
Most others get a % away from ITM Say like 2% away from ITM they will close out that leg.

Sometimes if it runs the first week against me to say +-30 I'll close out S-Side. If its on the index(s) I generally dont close on the +-30 d's because I have the time and diversification working for me. Most of the time on index(s) If it runs closer to my play, I just legin the opposite side, Credit Spread to Iron Condor, and roll that new postition in as I make a decision (close for loss, close S-side only and let B-Side run) on the opposite first play.
 
Avoid around earnings time on individual stocks. My one shot condors thread is a REAL strategy guys lol
 
Watch the action on NFLX monday (JUL Bullish Put Spread 95/90 NCredit 0.48)


 
Last edited:
The last two posts are examples of a consistent way to make income. Credit Spreads can be as easy as plotting a 21 day moving average and legin on the opposite side. Let the charts tell you what to do.

Credit Spreads/IronCondors are for Income.

NFLX screams to me Bullish Put Spread
1) 9% premiums at -.12 delt
2) Recent upside breakout
3) Touching outside of 21day BBand
4) -21% drop without earnings annoucements before ITM

So I would then check to see if there's earnings on the horizon http://finance.yahoo.com/q/ce?s=NFLX+Company+Events There is on JUL19th.
So that means I would close this one alittle early but thats plenty of time unless they PreRelease/PreAnnounce. But with 30+ days I'll capture most of the Credit so its a good play Monday.

If you are looking for income
Eminis are for Income (ShortTerm)
Options are for income (MidTerm)
Dividends (LongTerm)
 
Last edited:
Today I had to roll up my AAPL JUL Puts spread side of IC from 210/200 to 230/220 for additional cash. Also opened a new IC position today on MA JUL 250/240/185/175 for NC 1.00.

7 IC
1 Bullish Put Spread
 
If you want to make consitent money out of the options market it's possible for sure. But are you willing to be an aprentice for 2+ years? Most aren't,most aren't willing to put in 1,000s of hours of studying which is often very tedious which is why most won't make overtime.

No different from being a success in any business really but the world wants it all today......

Take most successful bands or actors as a good example. We see them on TV playing to 50,000+ people or winning an Oscar but what we don't see is when they struggled for years, living in a ****ty flat in the worng part of town, having no money to go out etc and having to do ****ty jobs to get by. But slowly they got some momentum behind them and 5 years later they were starting to get big and so on. This is the reality to most successful people including self taught traders. Yes, always exceptions to the rule but not many.

Good luck :)
 
You must log in or register to reply here.

Similar threads

S
Consistent Options Income Course
Replies
2
Views
7K
anley
A
F
Option pricing on FTSE 100
Replies
15
Views
6K
Hook Shot
H
W
Inside Looks Into The Professional Options Income Trader journey...
Replies
3
Views
3K
WklyOptions
W
W
income problems
Replies
7
Views
2K
westham010
W
K
What career can I go when you are a consistent trader?
Replies
2
Views
2K
SanMiguel
S
Top