Eh, bad example.

A better example is selling the call and buying a put and 250. You most likely won’t loose and when you do your losses are limited. That is why you can sell them safely. You know how much you loose if the price goes to zero. Because your loss is limited and it’s rare, you will make money.

The only way this doesn’t work is if the market goes up and down repeatedly very quickly. That won’t happen (because it will just go down and we are all hosed)

What you’re missing is someone sells the options to the guys at wallstreetbets. Those guys loose because they buy options. This guy is selling to them. They loose most of the time. This guy is the winner. Also this guys losses are limited. Those guys losses are not.

As someone else posted in reply, buying options is gambling. Selling is not. Well it is if not hedged. If hedged, he’s the bookie. He’s selling to the gamblers.

I did this before. When done correctly options are not gambling. He is effectively providing liquidity. In some ways selling options to the gamblers.

Options are very complicated. I took a lot of training and did what this guy does. It wasn’t for me, but if done correctly, like this guy is doing, is very safe, and low risk. All the risk is limited through hedges that limit losses.

Over time selling options like this will make money. A bad day may wipe out a month or more of gains. But that’s a rare event, expected but rare. Over time you will make money.