"never sell options" Well, this really depends. I wouldn't recommend options for most investors because it is a complex area and therefore one of the highest

"never sell options" Well, this really depends. I wouldn't recommend options for most investors because it is a complex area and therefore one of the highest risk financial instruments, however, it is possible to make good returns with covered calls as long as you have the time, research skills and capital to pull it off. My strategy was pretty simple, but difficult to execute. I first entered the market by selling a put on a stock I already did the homework on that I wanted to own, and I had to cash on hand to purchase if I was executed. I would keep writing puts until I got executed... then I would write covered calls until I got executed. Rinse and repeat. This does very well while the markets are going sideways or up, but obviously can go badly when the market goes down. However, if you really wanted to own that stock, and you did your homework property, you don't mind holding that stock through the downturn (hopefully it keeps paying you dividends). "if you do then never sell naked options" I would tend to agree with this statement... however as I previously mentioned, there is nothing wrong with selling puts for stock that you want to own, at the strike price you want, assuming you have the cash in your account to actually purchase the stock if you are executed. Oh and I would never bother with "American" options, only "European" ones... less risk of premature execution. "if you can't get out of your trade make sure you are well capitalized for loss absorption" Totally agree, all investors should have earned the right to risk by having their financial affairs in order including a well funded emergency fund etc. However I would agree with the sentiment that an ounce of prevention is worth a pound of cure... basically manage your downside, the upside will take care of itself. "if don't have enough to cover your losses don't apologize for losing your clients money while wearing a $10,000 watch and post it for the rest of the world to see" I think this guy was in total shock, and although insensitive, I doubt the optics of his watch was on his mind. Managing other people's money is incredibly stressful when things are going right... and hell on earth when they are not. This guy could have hid from the world if he wanted but instead had the guts to basically commit YouTube Seppuku. Pretty sure Hanlon's razor applies here.