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Is there any option buying strategies which work almost every time?

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    What do you mean by "works"? You can develop very low risk option strategies (e.g. sell deep OTM options) , but they would also be very low return.
    – D Stanley
    Sep 19 at 16:49
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    Sure. Buy things before the price goes up, sell things before the price goes down.
    – user253751
    Sep 19 at 18:52
  • There are arbitrage strategies that work consistently (box spreads, conversions, reversals) but the chances of retail traders getting them before the pros is slim. Sep 19 at 22:55

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No, there are not. If there are, anyone who knew of them would silently trade them, becoming insanely wealthy - and they wouldn't reveal those secrets to others, or else their competitive edge would go away.

Please don't start throwing your money away on options, they are high risk and it seems you may be in over your head.

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  • I think you'll find that many insanely wealthy people like Warren Buffet reveal their secrets to others, allowing others to invest too.
    – juhist
    Sep 19 at 17:03
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    @juhist Oh great! Could you please point me to Warren Buffet's option buying strategies which "work almost every time"? (take your time) Sep 19 at 18:19
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    Warren Buffet occasionally sells a large number of puts on stocks and ETFs that he is willing to own at a lower price. for an investor, this is the appropriate usage of short puts. In 40 years in the market, I've never heard/read of him buying options. Sep 19 at 22:49
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There is a strategy involving stocks that works almost every time. It's called "buy! diversify! keep costs down! stay in the market no matter what happens!".

Of course, the guaranteed working of such a strategy requires at least two quarter centuries, although often one quarter century is enough (but that's not guaranteed then).

As for options, I would only buy options if they are very stock-like and very option-unlike.

For example, an option allowing you to buy one share of company X at a price of 0.00 EUR is actually very similar to a stock and would form extremely good basis of a diversified portfolio, assuming you buy all the time (both at market highs and lows), and buy similar options of many different companies (diversifying).

On the other hand, an option allowing you to buy one share of company X at a price of 10 times its current share price is very stock-unlike and option-like, and those options should be avoided at all costs.

However, if stock-like options are good and option-like options are bad, it's a mystery to me why anyone would like to buy options if one can buy stocks instead.

I believe the correct terms related to options are "in the money" and "out of the money". The more an option is "in the money", the better basis of a diversified portfolio is. "Out of the money" options should generally be avoided.

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  • "it's a mystery to me why anyone would like to buy options if one can buy stocks instead" - leverage! You can buy an option for maybe $500 and if the stock price goes up by $5, earn $500. Try doing that with a stock. You'd have to pay 100 times the previous stock price (so maybe $10000)
    – user253751
    Sep 19 at 18:54
  • Warren Buffet occasionally sells a large number of puts on stocks and ETFs that he is willing to own at a lower price. for an investor, this is the appropriate usage of short puts. In 40 years in the market, I've never heard/read of him buying options. See: Stock Replacement strategy Sep 19 at 22:50

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