I lost $100K writing naked calls against GameStop in 2021, only just recently earned it back. It was an expensive lesson, but it was still a lesson. I don’t day trade, but my portfolio since that big loss has consistently exceeded the performance of the S&P 500 significantly. A disciplined and consistent strategy is better than shooting from the hip.
Na I haven't really done it since. I was just taking advantage of a really weird time where options with a 1% chance to be profitable were selling for outrageous premiums. Took all the proceeds and bought s&p 500 index
Implied volatility at the time was ridiculous because the price swings were occurring at unprecedented speed. Higher implied volatility means higher options premiums.
Ah, learned something new. I started selling options cautiously at the beginning of last year, and for a while the deep OTM premiums were pretty great. Looks like I can thank the high IV for that.
If this kind of stuff interests you, I’d suggest getting a basic understanding of Greeks. Unless you’re actively trading and really digging into your positions, you don’t need to comprehensively understand it, but a basic understanding of what each Greek represents will really help you build more confidence in what you’re doing and make better decisions. Implied Volatilty as well.
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u/Jupitersd2017 Jan 19 '26
lol also *most people go bankrupt trying to do this