My question to the Tradeking group:

Are "average" people making a living trading options ? Or is it all hype from the "experts" to sell seminars, DVD's, courses etc.

Can money be made consistently to make a living or a nice side income to a regualr job ?

If you know what you're doing,  yes,  you can make a nice side income using options.    I highly suggest checking out The Options Playbook

It's been an invaluable tool for me. 

If anyone was really making a living trading options over a reasonable time-period, you would have already heard of them.

For instance, everyone knows about Warren Buffet, Peter Lynch, and all the other great investors of all time. They're quick to tell you they made their riches without ever buying or selling a single option. So, why haven't we heard of anyone having long-term success trading options? well, you probably know the answer to that.

Disclosure: I am an average person who has traded options for about 2 years and am down about $600 overall. Not enough to be bitter about it but certainly far from "making a living".

Hi S90911 - Buffet purchased call options last year around this time to increase his stake in BNI

I'm not sure how options contributed to his riches,  but he does use them.

"Average person has to hire superior trader to do trading for him"

Ed Seykota.

No offence, but, you my friend, sound like you are after "easy money" after you have heard from "someone" that options is an "easy way to make a lot of money"

Let me spell it out for ya' - options is an easy and fast way to poor house, if someone was not able to make positive returns trading stocks, that someone will certainly lose ALL his money trading options, because of leverage and extra dimention of time.

AND - if you ask such question it tells me that you are novice, so here is an honest answer from someone who does make his living for years trading stocks and options:

95% of traders lose money - and if you still don't know who "the sucker at the table is" - you will find it very soon. I am not being rude, just honest and trying to get the message across.

You need to have good defense if you want to make a living trading stocks or options.  If you don't protect your downside somehow (stop loss,puts,hedging) you will lose money like a popped balloon.  You also need at least 6 months to a year of expenses saved up on top of your trading stash so even if you lose all your trading stash you won't be homeless until you find a job.  If you don't have that peace of mind you will ruin yourself.  It's a very emotional thing.  It's one thing having some money in stocks or trades to make extra income, but if your livelyhood depends on it you will give yourself an aneurism if you don't have a backup.  It's very stressful if you don't have a backup.  Constant income is not guaranteed.  And you don't want to get out of trades too early or put stops too close everytime, or psyche yourself out on everytrade because your rent depends on it.  You have to be able to make decisions without your head being your enemy too..

For example:  COSTCO just dropped to 63ish a couple of days  ago.  Let's say you bought some at $63 thinking it's cheap at that price, and the market's reaction wasn't justified to that extent.  Let's say you bought 200.  The next day or two it nosedives to $60ish.  If you're worrying about rent you would have set a close stoploss and would have been out of it.  If you didn't have that worry and put a stop at 58ish.. You would have still been the proud owner of 200 shares which are worth $65.72 as of the last trade.  

The point is if you want to do that you have to prepare for it.  Have money to support you for awhile, and only use what you can afford to lose as your stash.  Treat it like a business.  Get up when premarket is open (I get up about 4:50am PST for the market and I am not doing it for a living).  Get a feel for it.  Look at the Economic report or earnings if any.. check out sentiment.. get a feel for that day's market psychology.  Then get your gameplan and stocks that you are watching and see if there are new developments.  Are there any news articles for it?  Is there any news that could indirectly affect your stock?  I could go on and on.. It is a full time job.. and you gotta love waking up that early to do it.  On top of that you probably need a cheaper broker with good tools.  You NEED LVL 2 quotes with market depth.  You need a good platform with good tools. Tradeking is cheap but their tools kind of suck I think for day trading.  Look up some other options. I don't want to mention other sites, but there is one that charges $1 per 100 shares, and has great tools.  Also you need to remember the 3 day settlement rule.  To be able to constantly trade and not be stuck because funds haven't settled you either need alot of money, or a margin account to extend your buying power (don't go over your cash just use the margin to maneuver around the settled funds scenario), or finally find a broker that does not limit your buying power.  Different brokers have different rules.

Anyway I don't want to go on and on.  You could make a living doing this.  But it takes planning, discipline, and backup.

rfriend73 

 Wildest Ride in the Wilderness YOUTube vid at Disney, that is for Mr. Buffet :) and gang.

This isn't the year for a beginner that is for sure and definitly not the year for pro's as some will point out that they are also down in percentage points, which means no big bonus for them.

 With all due respect, I agree with dave dt in that 95% of all traders lose, I will go as far as saying 100% of all traders lose,  that is a radical thought (that is taken from an investment book that should be correctly notated to give respect to the author), .  but good advice none the less.

Staying a hopless optimist that i am, I am sure that with the right discipline and the correct reading material such as technical analysis, Market strategies, and the education tab with Brian or the CBOE Chicago Board of Trade education site you could be the next go to guy for advice or down and out trying to make it to shore. The best scenerio is learn from the mistakes and know when to sell for gain or protect from any more losses.

I know alot of people that consistently makes money at options :) I haven't sent the form in yet, but I have fun trading none the less. irregular economic conditions that makes the roller coaster ride fun.

 PEACE