Reply to My mom made money pretending to buy stocks

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Selling puts and Selling Calls are low risk and yield high gains when done correctly.  Yes, they are not ZERO risk.  OP doing well.  [/quote]

What is long tail risk?  Seems poor risk management — [b]if you sell a call[/b], then the price rises you lose all upside as buyer captures stock appreciation — and if it drops you still lose almost everything except the premium — and if a stock starts dropping you can’t sell until option expires in case they do decide to exercise call (unlikely I guess). [/quote]

I was only using PUTS to gain premium income/gain for the account. I'd only sell a call if I already own it, my Mom didnt want to own individual stocks. All the sudden moves of the stock price producing more tail risk could come into play on Calls (upside lost) but I'd also say this is usually done on weeklys so moves against my position would have to occur in short order. I paused this weekly positioning if earnings or investor days aka news was due to come out. One scenario- "oh wow I got stuck buying APPL at 140" when it did trade for a brief second at 135 would not have exactly been the end of the world when I had already pocketed $45 per share in premiums.  Ive pocketed $65-$70 already on TSLA and have never bought the stock[/quote]

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