Thanks for the detailed response. I guess ill ask you the same question i asked the other guy. From your write up it does sound like theres less gamble-y strategies people use. I haven't actually traded anything yet but have been thinking about jumping in with some money i dont care about losing all that much. I was thinking about sticking to the big cap companies, buying ITM 2, 3, 4 weeks ahead of earnings and selling the day before to capture IV gains. Is that a reasonable strategy assuming you could stay disciplined and not hold through earnings and get crushed?
Opposite. We're saved thanks to OP.
1. Undefeated rules to making money: 1x Inverse WSB OP. **2x WSB OP on frontpage.** 3x WSB OP on frontpage at the top.
2. OP is on frontpage and bought *CALLS on TLT* w/ exp in mid-June. Which means they expect something bad to happen in the equities market, maybe sell in may go away, or the markets testing new fed chair Warsh. That's probably why they expect cut rates. Fed rate cuts to a market decline/crash will drive the 20yr yields down and TLT up.
3. Problem is OP is likely a retard and took too much risk in too short a time frame. The rich like Buffett/Dalio/Trump are loading up on short term bills/notes and gold rather than LT USTs. Also unlikely we get a downturn in May after we got one just earlier this year. Plus """market forces""" will likely want the market to keep going up either to stabilize PE/PC, win the AI race against China, prevent riots/revolution, so that they can unload a few TRILLION via the big 3 IPOs into retail 401K/IRAs via indexing coming later this year (SpaceX/Antropic/OpenAI), or you know Trump/GOP want to win the mid-terms. Who knows? All I know is that OP ain't thought about these things.
So we're basically going to be good until at least mid-June. OP will probably lose on their trade. I know because I've been dip buying TMF since 2022-2024 as a hedge to my leveraged ETF positions only gotten get free tax loss harvesting at the end of each year.
Thank you OP for your sacrifice.
Yes. Options have existed for a very, very long time, well before 0 DTE existed, for starters, so prior to 2022, daily 0 DTE wasn’t possible.
To more directly answer your question, and also disagreeing with the other regarded individual who replied to you: options can very much be profitable to retail. Simple, long-dated calls are one way to do it. For example, if you mechanically buy a 2-year SPY call whenever the market’s down more than 20% and hold to expiration, you’re likely to come out way ahead (past performance doesn’t guarantee future profit blah blah). The market is not often down 20%, so this isn’t a get-rich quick strategy, but it’s not unreasonable and has historically very good returns if you’re choosing a strike that isn’t absurdly OTM (say, if you pay for an at-the-money call). You can reduce the cost (and profit/risk) by using a long-dated spread instead (so for example buying the at-the-money and selling a call 10% above the current price at the same expiration).
There’s also selling index puts - again, not a road to riches, but as a way to add a small amount of leverage during times of elevated volatility. The typical internet-approved version of this is to sell 15-30 delta, 45 DTE puts, but there are a ton of ways to do this profitably, and also plenty of ways to quickly blow up your account. If you’re selling options, you very much need to be keenly aware of the leverage you’re handling, and also how volatility changes both the options price and the margin requirement (you can get blown out of a short put due to changing margin requirements even when the trade remains profitable).
The question you asked is really broad, something like “how do you build a house,” so I’m speaking in really broad terms with just two tiny examples in an ocean of possibilities. But the short answer is yes, you can very much be long-term profitable with options strategies.
However, ultimately, options are just another tool. You really need a thesis on the underlying, and if that’s wrong, some complex options genius setup isn’t going to save you from being wrong. So don’t get too caught up in the options mechanics at the expense of understanding why the underlying is behaving the way it is. It’s the latter that will make you money; options just add to the toolbox and can, for example, make you money if the underlying doesn’t move (which isn’t possible with shares apart from whatever dividends you get).