Options are lower risk than stocks

yeah you need to go back to options 101

There are tradeoffs. Options can require less capital and give you defined risk, but leverage, theta decay, expiration, etc. can also make them much less forgiving. Cheaper exposure doesn’t automatically mean lower risk

"Cheaper exposure doesn't automatically mean lower risk." This is the most succinct and accurate counterargument to OP's claim.

what resources (videos, education, websites, books, etc) did you use when you began to learn 0DTE? Im specifically interested in 0-3 dte as im ready to move up from longer dated contracts.

not 100% sure on which side of the bell curve you sit. Could honestly be both.

Likely on the weekly 5 delta side. Way out of the money and hopeless

thetagang loves you:D

So stupid

Until they aren’t

You probably referred to calls with 0.80 delta or higher, with an expiration of 1 or 2 years…yeah, those are call LEAPS.

This is either a troll, or you really need an education in investing.

I used to think this. Now my day trading account is -95%

Stop day trading and start making money

Yeah, full picture my day trading account is like 1% my portfolio. Making boring etf money with the bulk of the rest. Gotta feed the internal gambling goblin sometimes

What? No way! /s

Yes, every one gets into options precisely because of their lower volatility and risks /s

tell me you know nothing about options without telling me you know nothing about options 🤡

You technically don’t make an argument that makes any sense. You could say, selling puts and earn premium AND getting put shares essentially creates a margin of safety— but you did not.

Big if true

Options are cheaper than stocks precisely because of their unique risks that owing stocks doesn't have

Imagine your option is a donut that you leave on the table. An ant comes and takes a small piece of your donut. That ant comes back every day to take a piece of your donut. The next week, two ants come to your donut. The week after that, four ants. Then eight, and so on. That little ant eating away your option is called theta. Your option’s value evaporates with time. This does not happen with stocks.

Imagine your life is a big ball of light. This is your life.

What’s all you autists obsession with collecting theta? You do realize it’s simply compensation for being short convexity, and that theta and gamma are inextricably linked, right?

Expiration ? Heard about it?

Lmaoooo Jesus

Less capital doesn’t mean less risk

depends what risk means to you. risk of capital tie up is I think what youre going for. that's what I focus on anyway. I look for what I expect to happen that I can get a cheap price on the spread i do have ccindex type positions that I hold long term, but for individual holdings I like options far better. for me. not for people who don't know what they're doing or are learning

This is a textbook standard deviation scenario. Options could amplify the returns immensely if you buy the right strike and date putting you in the apex of the percentile, but it can also put you in the lower end of the percentile if the IV or whatever other factors kill the return. Same as the stock shares, selling them too early or holding them too late. They’re both actually equal outcomes, depending on your time and execution obviously. One just favors defined risk versus implied risk

Only if you buy atm or preferably itm yearly options. With buying options calls or puts you are not only gambling on direction but also volatility. If you buy an atm 1 year spy $770 strike option for $130, spy MUST reach $900 by this time next year for you too make any profit on the trade. $800 strike might be $110 so it'd be $910 break even, etc.

https://preview.redd.it/58ladf9ysdih1.jpe… You need to read up on the risk of trading options you have no idea what the hell you are talking about

Imagine thinking that adding the elements of time and volatility makes an asset LESS risky. Lmmfaooooo The basic fact that they expire makes them infinitely more risky. OP is a dumbass

1. What you pay isnt whar you risk. Entering a stop loss or example limits your risk. You're right however options are more price efficient. 2. That efficiency comes with trade offs. time. Buying options is paying for a window of time. You can lose if you run out of time in addition to being wrong on the direction. Similarly you must be right about direction and also be right in time. This great complicates the probability of success. Volatility is another risk. If IV should drop your option trade can sink as well 3. You dont technically own those shares. You technically own a contract that stipulates your ability to buy/sell shares at strike. An option is not worth what rhe underlying would be worth until it's deep in the money. Deep ITM purchases are called stock replacement strategies for a reason. But you're buying all intrinsic value pretty much so your paying a lot for that. Almost as much as the stock itself. You see you're only looking at it from a leverage stand point and not a probability of winning stand point Of course options seem way better. Ask all the premium sellers here and they'll surely agree with you lol . Why certainly sir limited risk? Possibly huge rewards ? You must be a very smart man yes sir surely you are! You're certainly getting the better of me in this deal, thank you for your business. I'll just take my lowly premium and go home.

You should read Nassim Taleb's books, this is the basis of his barbell strategy.

Oh.... It's ok to believe that. There's certainly arguments for it. This is the options forum at reddit so we're all here for options information

Oh! The title! OMG Yes you are so wrong about that! Options are much riskier than stocks.... its ok for you to think that way if you want, but maybe keep that to yourself? "Have shares" no... you rent the control of the shares temporarily. I tend to rent out and you speak of paying rent... the control of the shares is cheaper, but riskier. "As long as you aren’t buying options that expire in a week or too far OTM options are better than stocks" You forgot a comma there so it confused some people here..... place a comma after OTM, or it looks like you are saying " far OTM options are better than stocks" I see what you are saying and there is an argument for that,,, buying or selling.... many people do it and win on both sides