You Should Be Earning Money Trading Options. Here’s How.
The answer is simple.
Sell options spreads far out of the money that have a high probability of success. Unlike buying calls or puts where you are betting on a huge move (that usually never comes), selling options allows you to profit by taking advantage of the passage of time.
Options lose value every day.
For option buyers and people that YOLO this is horrible news. Now you know why you see so many people on facebook groups sharing their losses. People are basically buying lottery tickets hoping and praying their cheap options get In-the-Money.
For option sellers, this is music to our ears. As options lose value over time, we can buy them back cheaper and profit.
How To Find The Best Spreads To Sell
On Robinhood it’s VERY hard to find options spreads to sell that give you the highest credit with lowest risk. You would have to go through each stock in the market and check the spreads which is next to impossible. Lucky for you, I have a solution to this daunting task.
1. Use Tiblio
Tiblio sends you daily recommendations of options spreads that have the highest credits with the lowest risk. Below is an example of the recommendation dashboard I use when looking for options spreads to sell. Tiblio also sends you messages when you should close your positions. This puts your earning potential on autopilot.
2. Look Through The Robinhood App
Using the Robinhood App you could look at each spread in the market and try to find the highest credits. This method in practice would not work given the number of potential spread combos. Before using Tiblio, this was unfortunately what I attempted to do and failed every time. Don’t make my same mistake.
TL;DR:
- Do not buy call or put options
- Sell options spreads with a high probability of being out of the money
- Use a system like tiblio.com that gives you options spreads and tells you when to close them for profits.
DISCLAIMER
There is a very high degree of risk involved in trading. Past results are not indicative of future returns. I assume no responsibilities for your trading and investment results. The list of option spreads, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for stock observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the stock observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities or strategy mentioned herein. I am not a financial and advisor and I do not give financial advice.
