Do you know anyone who has made money from stock option type investing?

Question

I am wondering if I should stick with covered calls or invest in naked puts and naked calls..

Answer 1

I think cover call will make stock broker rich, usually you don't make a lot, unless you got the stock that not moving a lot,cover put is the best.

Answer 2

There is an old joke on Wall Street that goes something like this: A new broker trainee is taking a friend for a tour of lower Manhattan and they go down to the waterfront. Trying to impress his friend, the Wall Streeter points out several pleasure boats and says "There is J. P. Morgan's yacht and there is Salmon P. Chase's yacht." After looking around a little more the friend asks "Where are all the customer's yachts?"

Some people make a boatload of money trading options and futures. Others loose everything. Be very careful if you don't know what you are doing.

Answer 3

Yes, but we have a saying in the brokerage business: The pigs get fat and the hogs get slaughtered! Why subject yourself to the extreme risks of naked puts and calls? Covered calls are smart moves... very conservative. Let others do the naked stuff... they'll be the ones who eventually get slaughtered.

Answer 4

I know people who make alot of money trading options. If you don't know what you are doing however, you can lose your shirt. Options are very expensive to trade correctly as well if you want to take hedged positions with puts, call and the stock. Selling uncovered options is basically the same as going to vegas. Check out this site. This person is a professional options trader and keeps his own blog.