No. of Recommendations: 7
Reading about this kind of strategy reminds me of a post by an Australian investor I followed years ago, until she hung up her skates.
"The Three Worst Investment Strategies Ever"
#2 Writing Puts: The problem with this strategy is that you make a few bucks that you get to keep if you’re right, but you lose your home if you’re wrong. Pretty crap deal, if you ask me. Selling puts for income is the worst strategy ever – you get a pittance every month, and take massive risk to do so. Added to that, the only way to effectively manage that risk is to spend some of that pittance on protection. Awesome. -- www.roguetraderette.com
and
"If you think you've come up with a brilliant idea [for making risk-free money with options]... whatever you think you've discovered is not what it appears to be, and anything that has a slight shred of a chance of being real has already been discovered and exploited by folks way smarter than you at places like Blackrock and Goldman. This will save you lots of pain."