My latest row with the fools in the Reddit Options SubReddit, so much fun— 11/01/2023

Michael Petryni
4 min readDec 1, 2023
Photo by Kelly Sikkema on Unsplash

Once more into the breach…

Today I ran across this in the Reddit Options SubReddit:

I’ve concluded that there is no such thing as a “consistent income” doing this. (self.options)

submitted 22 hours ago by Novel-Trick1490

I’ve been trading over the last several months, backtesting until my head explodes, studying analyzing etc and after all that, after trying out various option spread strategies like Iron Condors and verticals and butterflies.

I have reached one conclusion, there is no such thing as consistent income doing this over many years. And no, I’m not talking about someone that has a full time job and makes a few hundred bucks most months.

I’m talking about the type of income so you don’t have to work, you can support your family, pay your bills and live a pretty good life over 5,7,10 15 years plus consistently. I’m talking a 65k a year income strictly doing this and nothing else.

The only exception is if you have such a huge trading account to begin with that you could practically just live off that money already without trading at all but you trade anyway.

The way “implied” volatility impacts spreads, probabilities etc is the equivalent of constantly moving goal posts that’s impossible to form any kind of consistent strategy because things change too much, so essentially the options market is comprised of a lot of traders just playing hot potato with each other bouncing from trade to trade and either losing money or spinning your wheels long term.

A PREVIOUS ROW —

I had previously submitted the text description of the “Simple Strategy” (copied to posts here again and again) on one of the days the options racked up a 100% profit target with one of my charts as the usual illustration.

That triggered a previous row.

The post was pulled, I guess, since a couple of hours later I couldn’t find it except in the archive under my name.

A day later I received a message from one of moderators (or a bot answering on their behalf) that instructed me I…

--

--

Michael Petryni

Journalist, film critic, screenwriter, proprietary trader seeking simplicity in trading. https://thegodoftrading.medium.com/membership