Human emotion is completely predictable.


That is how I generate $30k a month on average with options.
When the market crashes everyone panics.
They flood into put options for protection.
Put premiums go through the roof.
Nobody wants call options.
Calls go on sale.
I do the exact opposite of the herd.
I sell puts for top dollar because everyone is panicking to buy them.
I take that premium & buy calls for bottom dollar because nobody wants them.
Then the sentiment flips.
Market starts to recover.
Puts are suddenly worthless.
Calls explode in value.
On AMD I held 2-year contracts for 3 months.
Made 85% realized.
Both sides of the trade hit at the same time because I positioned against the emotion.
This is not complicated.
Human nature does not change.
It never will.
That is the edge.
post-image
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin