It seems like you've done your due diligence on this, but I can't say it's a path I would recommend. I personally prefer to throw everything into a few lost cost index funds and let the pros do the work for me. The odds are too stacked against you in the options market, and I've got no interest in doing battle with the likes of JP Morgan and Blackrock.
I don't want to spend any time worrying about the market or whether one particular stock is up or down on a day to day basis, since I've still got another 20-30 years before I retire. The plan is just to let time in the market do its thing.
We’re on the same track. I also wouldn’t recommend it! Lol. But I think I have the tolerance and will develop it further. And I just see a window of opportunity in the options game. It might never be a major source of income. Or maybe it will be. I won’t know unless I try -- smartly. My plan is to supplement my earnings by learning a new skill and pouring the profits back into my long-term portfolio.
Thanks for sharing this Darnell. I have also gone down the rabbit hole of trying to push the envelope to "create income" from more active investing to funnel back into my long-term buy & hold S&P 500 bucket.
Needless to say, I still haven't found a way to do this successfully. I have to agree with Tanner that, for me at least, I cannot hang with the Blackrock's of the world.
Makes sense. My goal isn’t to compete with the Blackrocks of the world. But to ride the wave and get a slice of the apple. Singles, not home runs. I’m looking forward to learning and seeing where it goes.
I think the problem is, by getting into options market, Blackrock is exactly who you're competing against. There's always another party on the other end of the trade, and almost always it's going to be someone with more skill, resources, and institutional knowledge.
If you wanted to ride the wave, that's exactly what a good, cheap index fund will do. Getting into options is trying to beat the collective wisdom of the market. That's not a bet I'm willing to make.
I think most experts recommend a core and explore type setup. 80-90% of your investments should be in boring index funds, and the rest can go into more speculative stuff. That'll give you a chance at big gains, but also protect your core from big losses.
It seems like you've done your due diligence on this, but I can't say it's a path I would recommend. I personally prefer to throw everything into a few lost cost index funds and let the pros do the work for me. The odds are too stacked against you in the options market, and I've got no interest in doing battle with the likes of JP Morgan and Blackrock.
I don't want to spend any time worrying about the market or whether one particular stock is up or down on a day to day basis, since I've still got another 20-30 years before I retire. The plan is just to let time in the market do its thing.
We’re on the same track. I also wouldn’t recommend it! Lol. But I think I have the tolerance and will develop it further. And I just see a window of opportunity in the options game. It might never be a major source of income. Or maybe it will be. I won’t know unless I try -- smartly. My plan is to supplement my earnings by learning a new skill and pouring the profits back into my long-term portfolio.
Thanks for sharing this Darnell. I have also gone down the rabbit hole of trying to push the envelope to "create income" from more active investing to funnel back into my long-term buy & hold S&P 500 bucket.
Needless to say, I still haven't found a way to do this successfully. I have to agree with Tanner that, for me at least, I cannot hang with the Blackrock's of the world.
Makes sense. My goal isn’t to compete with the Blackrocks of the world. But to ride the wave and get a slice of the apple. Singles, not home runs. I’m looking forward to learning and seeing where it goes.
I think the problem is, by getting into options market, Blackrock is exactly who you're competing against. There's always another party on the other end of the trade, and almost always it's going to be someone with more skill, resources, and institutional knowledge.
If you wanted to ride the wave, that's exactly what a good, cheap index fund will do. Getting into options is trying to beat the collective wisdom of the market. That's not a bet I'm willing to make.
I think most experts recommend a core and explore type setup. 80-90% of your investments should be in boring index funds, and the rest can go into more speculative stuff. That'll give you a chance at big gains, but also protect your core from big losses.
Great stuff Tanner. I’ll keep you and everyone else posted on my progress!