Reply to Can you really make so much money selling options?

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[quote=Anonymous][quote=Anonymous]To the OP’s question,  the OP can do the math as follows.  Example:  TSLA weekly 220 call would generate $420 income if sold today, tuesday.  If this was repeated 52 weeks a year, 420 times 52 is the income on $22000 in stock equity.  Not getting into other factors like stock appreciation or decreases in the stock, or the stock being exercised. [/quote]

That really over simplifies it, there is no way to make the same amount every week as volatility changes.

Options can be a great way to make money but they have a lot of downside risks so you have to be incredibly careful. Covered calls and cash secured puts are the simplest to understand and a lot of people use them to get a bump on their gains. Most people who claim to make big money tend to ignore their losing positions and only highlight the wins. This is true in many investments because it is a lot like gambling, nobody wants to talk about losing $10,000 at the blackjack table but they love to say how much they won that one time.[/quote]

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