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Ive been mostly trading options the last few years and have done pretty well (actually made money, not lost money). Selling naked puts and covered calls are my prefered MO. I much prefer to sell an option contract than to buy one. I like to sell a Put, for example, on a good stock I wouldnt mind owning anyway. Im selling time, and like the song, its usually on my side. If I end up getting put the stock, I get it at a discount to what I thought was a good deal before the option income. If the stock goes up, what Im usually hoping for, I keep the option premium. Even if I want to buy a stock, Ill almost always buy it through selling a put option.
I get very itchy buying option contracts, so I usually avoid that. Time is constantly deflating the value which you have to make up for in addition to wanting the underlying stock price to move in the desired direction.
I got started with option trades using the Motley Fool Option service. Its a great learning tool and they have some pretty good picks. Tho, I tend to make a lot of trades on my own now.
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