![](https://i.imgur.com/CLvY2jA.png")
11-09-2021, 04:44 PM
The world of options can seem financially magical that course peddlers and amateurs can combine and cook various strategies that make it look like you can make risk free money.
Free money from options is like free energy ...People who misunderstand the maths behind options are like the people who misunderstand physics to claim free energy exists.
My advice is don't waste one minute on such claims they sometimes look workable only because people don't fully understand the maths.
In this video, Kelvin claims he has been making income from a ,safe "wheel strategy" of selling cover call and cash supported puts. He wheels it between the 2.and magically an income stream is obtained....almost risk free.
The strategy is flawed but he doesn't know it or understand the maths. He is getting this "income stream" by limiting his capital gains and increasing his probability of "capital losses"...if stock goes down this strategy increase your probability of holding the losing stock hence capital losses I it goes up the probability of holding the stock decreases. To understand this one use a simulator or modeling tools. ..and understand it has a zero overall returns.
Free money from options is like free energy ...People who misunderstand the maths behind options are like the people who misunderstand physics to claim free energy exists.
My advice is don't waste one minute on such claims they sometimes look workable only because people don't fully understand the maths.
In this video, Kelvin claims he has been making income from a ,safe "wheel strategy" of selling cover call and cash supported puts. He wheels it between the 2.and magically an income stream is obtained....almost risk free.
The strategy is flawed but he doesn't know it or understand the maths. He is getting this "income stream" by limiting his capital gains and increasing his probability of "capital losses"...if stock goes down this strategy increase your probability of holding the losing stock hence capital losses I it goes up the probability of holding the stock decreases. To understand this one use a simulator or modeling tools. ..and understand it has a zero overall returns.
I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.
