Is selling options risky and most importantly, when should you sell options instead of buying stocks? I have been selling options for the past 5 years and have learned my fair share of lessons. I am sharing my experiences with selling options for income in the context of total returns and situations where I find selling options beneficial.

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⌚ Timestamps:
00:00 Lessons from the Options Trading
00:39 Cash Secured Puts and Covered Calls
03:16 Situation 1: Entering a New Stock Position
04:54 Situation 2: Exiting a Stock Position
06:29 Situation 3: High Volatility
07:15 My Favorite Strategy for Selling Options

PS: None of this is meant to be construed as investment advice, it’s for entertainment purposes only. The links above may include affiliate commissions or referrals. I’m part of an affiliate network and I may receive compensation from partner websites. The video is accurate as of the posting date but may not be accurate in the future. Please visit for privacy, terms and conditions, and disclaimers….(read more)

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If you are losing money selling options, it can be a frustrating and discouraging experience. Options trading can be a risky endeavor, and losses are a part of the game. However, there are strategies you can try to minimize your losses and potentially turn things around.

One approach you can take if you are losing money selling options is to reassess your risk management strategy. Options trading involves taking on a certain level of risk, but it is essential to manage that risk effectively. One way to do this is by setting stop-loss orders to limit your losses if the market moves against you. By having a clear exit strategy in place, you can prevent your losses from spiraling out of control.

Another strategy to consider is diversifying your options trades. If you are solely focused on one type of option or one underlying asset, you may be putting all your eggs in one basket. By spreading out your trades across different assets, expiration dates, and strike prices, you can reduce your overall risk exposure. This can help protect you from significant losses in the event of a market downturn or unexpected price movement.

Additionally, it is important to do your research and stay informed about the market trends that can impact the value of your options. Keep up to date with economic indicators, news events, and earnings reports that could influence the price of the underlying asset. By staying informed, you can make more informed decisions about when to enter or exit a trade, potentially improving your chances of success.

Finally, consider seeking advice from a professional options trader or financial advisor. An experienced professional can offer valuable insights and guidance on how to improve your options trading strategy and potentially turn your losses into gains. They can help you identify areas where you may be making mistakes and offer suggestions for how to course-correct.

In conclusion, if you are losing money selling options, don’t lose hope. By reassessing your risk management strategy, diversifying your trades, staying informed about market trends, and seeking professional advice, you can improve your chances of success in the options market. Remember, trading options carries risks, but with the right approach, you can potentially turn things around and start seeing positive returns on your investments.