...that you can trade options inside a Roth IRA!
24 years of contributing to it, and I never knew this.
Of course I only started learning about how to do options trading when I was 2 weeks ago old, and don't know enough to fully realize what I don't know yet, so I'm not going crazy with this new found knowledge.
I at least try to be self aware enough to not be in contention for any Dunning-Kruger "Top Left" awards!🤣
Bro, I do option trading and all I have to give you this advice, don't do it. It is the easiest way of losing alot of money very quickly. Don't get me, it can be profitable but it can be heart wrenching. If you wanna see people destroy their lives on option bets look up a youtube called Kamikaze Cash and watch his recount how people have taken a bit of knowledge and have ruined their life.
Now if you decided not to heed my warning above dear god stick simple strategy like sell calls or selling put. In these cases (Selling Calls, you have 100 shares and you are basically betting your stock doesn't go past your strike price or selling puts (Where you are hoping a stock price doesn't go below a certain price where you would be obilgated to buy 100 share/Per Option.) Look up the wheel strategy and all this will make more sense. Good Luck
@Xanthos472 wrote:I do this a lot. Google selling covered calls. I sell out of the money strikes at prices I would be happy to sell the underlying at.
Yeah, I did that with a block of Tesla shares in my CMA account this week, since it is the only thing I have 100+ shares of in there.
I'm more than happy to collect $123 to not sell them at $385/share this week, but wouldn't have been upset if they did, even though capital gains would have stung a bit!
Next week I'll be able to do similar with the 1000 shares in my Roth IRA, and since there is no capital gains worry, I may get a little cheeky with a couple of the calls.
I'm mostly going to stick to collecting relative chump change until I find something much cheaper, and a bit less volatile, to try a wheel strategy on.
@FeeBear wrote:Now if you decided not to heed my warning above dear god stick simple strategy like sell calls or selling put. In these cases (Selling Calls, you have 100 shares and you are basically betting your stock doesn't go past your strike price or selling puts (Where you are hoping a stock price doesn't go below a certain price where you would be obilgated to buy 100 share/Per Option.) Look up the wheel strategy and all this will make more sense. Good Luck
I'm sticking to collecting relative chump change selling out of the money covered calls on my Tesla stock for now, as it is the only thing I have more than 100 shares of.
I'm looking for something MUCH cheaper and less volatile to do a wheel strategy with to get a feel for things.
@FeeBear wrote:Bro, I do option trading and all I have to give you this advice, don't do it. It is the easiest way of losing alot of money very quickly. Don't get me, it can be profitable but it can be heart wrenching. If you wanna see people destroy their lives on option bets look up a youtube called Kamikaze Cash and watch his recount how people have taken a bit of knowledge and have ruined their life.
Now if you decided not to heed my warning above dear god stick simple strategy like sell calls or selling put. In these cases (Selling Calls, you have 100 shares and you are basically betting your stock doesn't go past your strike price or selling puts (Where you are hoping a stock price doesn't go below a certain price where you would be obilgated to buy 100 share/Per Option.) Look up the wheel strategy and all this will make more sense. Good Luck
Its true when they say traders become introverts bc they dont have anyone to talk to about it simply bc people dont understand it.
Im looking to trade full time by mid year. As long as you have good risk management, understand market structure, and the most important: patience, the dream can become a reality. Im in year three and I will have my first profitable year trading almost daily. Its so rewarding when you beat the emotions.
@markbeiser if you want talk options at anytime let me know!
@Blender wrote:
Im looking to trade full time by mid year. As long as you have good risk management, understand market structure, and the most important: patience, the dream can become a reality. Im in year three and I will have my first profitable year trading almost daily. Its so rewarding when you beat the emotions.
@markbeiser if you want talk options at anytime let me know!
Thanks!
I already figured out that there is nobody in my circle of friends to talk to about it, most of them are fairly financially ignorant, like $1000+/mo truck payment, with little to no emergency fund or retirement savings kind of ignorance.
This week I got paid not to sell 100 tesla shares in my brokerage account.
Next week I'll try getting paid not to sell the same 100 shares again, and not to buy 100 new shares in that account, and to not sell 1000 shares in my IRA!🤣
Too chicken to go for big premiums, happy with out of the money loose change for now.
The universe gave me a gift in 2019-2020, I'm not looking to tempt it to take it back...
I've used margins to "buy the dip" on shares of stocks I hold long term before when I didn't have cash, but I'm not going there with options trading yet.
I also need to figure out what I want to shift around to make blocks of 100 shares of some of the other random stuff I've been holding in my IRA for a while.
@FicoMike0 wrote:I look for stocks with more than 100% volitility, but demonstrate modest long term change.
I'm still working on how to evaluate stocks for options trading.
I've always been a long term buy and hold person, so not sure I'm ready to jump into trading options on any stocks I would not have otherwise liked to own long term.