Comment by e9

5 years ago

Trading options on Robinhood

I'll upvote on the options, but I don't endorse RH for most. They are slow to react to corporate actions and have more glitches than others.

  • That’s fair. I use robinhood to get odds on option trades and mostly trade on Schwab, I hate Schwab interface though but I trust them to protect my money and trades more than robinhood.

May share your strategy?

  • I sell puts a week out at the strike price where I have about 90% chance of winning(Robinhood provides the odds). Obviously you get it wrong sometimes so you have to buy the shares so I always trade on stocks that I don’t mind owning. If I buy the shares then I sell call option a week out at the strike price equal or higher than what I paid to buy shares and it usually comes back up within a month or so.