r/wallstreetbets•
andForMe

So I'm looking to get into options trading, and after a bit of research I've made a pile of fake money in a short time with a paper trading account. Can I trust these 'results' to translate (at least approximately) into the real world?

Like the title says I've been reading about options strategies, the greeks, etc... and I decided to test out what I've been learning with a paper trading account. I've mostly stuck to selling vertical calls/puts and iron condors since I prefer to know what I stand to gain or lose on a given trade. I've been having a great go of it, and despite getting roasted by Tesla going crazy last week (whoops), I have somehow pulled in and secured just over 10% of my starting 'cash' ($500k) in a week. I have another 10% or so that I'm waiting to close out on Friday and lots of buying power to spare (earnings reports make me nervous). This is too easy, way too easy, for me to believe I'm doing it right (at this rate I could double my money in under two months).

So what's the deal? I know since I'd be trading with a lot less money (I've got roughly $15k I can afford to lose right now) I'd be getting hosed by the commissions, but even taking that into consideration this seems too easy. I've checked out my brokerage, and there are no funny million dollar limits or crazy hidden fees that will devour my earnings or anything like that. As far as I can tell everything checks out, but the rational part of me doesn't believe that anyone (me least of all) could earn that much.

Posted Apr 14, 2015, 11:02 PM UTC

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