# Profitable options trading

**URL:** <https://forums.collective2.com/t/profitable-options-trading/16041>\
**Category:** Trading and Markets\
**Created:** [March 16, 2023, 12:26pm UTC](https://forums.collective2.com/t/profitable-options-trading/16041 "2023-03-16T12:26:54Z")\
**Posts on this page:** 5\
**Page:** 1

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**Author:** ![Abies](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/abies/32/17807_2.png) [@Abies](https://forums.collective2.com/u/Abies)\
**Post date:** [March 16, 2023, 12:26pm UTC](https://forums.collective2.com/t/profitable-options-trading/16041/1 "2023-03-16T12:26:54Z")

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Hi,

A question for the experienced traders:

Checking the strategies on C2: there are almost no option trading strategies who are profitable on a long term basis (+5 years). I’m not talking about short strangles or other strategies that only involve selling options, nor about strategies that are only 1 year active (while they might be good, they still have not proven to be long-term profitable).

There should be many traders who are mainly buying options (index / shares), but very few on C2.  
Why is that? Is it really that hard, or almost not possible to find an edge with an options strategy? Is it because one can not define risk per trade properly (stop losses don’t really work with options like they can with stocks or futures)? Or do profitable options traders just don’t find their way to C2? Are there other reasons?

Thanks to share your view!

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**Author:** ![JITF](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/jitf/32/10116_2.png) [@JITF](https://forums.collective2.com/u/JITF)\
**Post date:** [March 22, 2023, 1:31pm UTC](https://forums.collective2.com/t/profitable-options-trading/16041/2 "2023-03-22T13:31:56Z")

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Main reason to trade options is to earn more money on the smaller accounts, so risks are higher by default in option trading. Increased risks lead to early crashes.

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**Author:** ![ManagingRisk](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/managingrisk/32/18383_2.png) [@ManagingRisk](https://forums.collective2.com/u/ManagingRisk)\
**Post date:** [March 22, 2023, 9:04pm UTC](https://forums.collective2.com/t/profitable-options-trading/16041/3 "2023-03-22T21:04:35Z")

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> [@JITF](#):
>
> so risks are higher by default in option trading.

Hi,  
Do you have any statistical evidence to back up this claim?  
Thanks.

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**Author:** ![JITF](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/jitf/32/10116_2.png) [@JITF](https://forums.collective2.com/u/JITF)\
**Post date:** [March 25, 2023, 3:22am UTC](https://forums.collective2.com/t/profitable-options-trading/16041/4 "2023-03-25T03:22:59Z")

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> [@ManagingRisk](#):
>
> Do you have any statistical evidence to back up this claim?

…

> [@Abies](#):
>
> there are almost no option trading strategies who are profitable on a long term basis (+5 years)

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**Author:** ![ManagingRisk](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/managingrisk/32/18383_2.png) [@ManagingRisk](https://forums.collective2.com/u/ManagingRisk)\
**Post date:** [March 25, 2023, 6:40pm UTC](https://forums.collective2.com/t/profitable-options-trading/16041/5 "2023-03-25T18:40:08Z")

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> [@Abies](#):
>
> there are almost no option trading strategies who are profitable on a long term basis (+5 years)

The explanation is very simple: very few investors trade or even understand options.

Go to your local bar for example and tell your friends that you bought 500 shares of Microsoft, they will quickly understand. But tell them that you bought 10 deep out of the money April calls of Microsoft and watch their reaction. Most of them will simply stare at you and scratch their head.

Only sophisticated traders use these financial instruments, because they require much more knowledge and research.

And that’s why you don’t see many option strategies on C2 (profitable or not), and not because option trading is inherently risky.
