> oftentimes you can use the “opposite“ of that strategy, so to speak, to make money
The opposite of Robinhooding might be buying a smattering of stocks and holding until infinity. It’s better than constantly trading options, a consistently losing strategy. But I wouldn’t call it a winner.
> the opposite would be selling OTM options. And that's a reasonable way to make money.
It's the original "vacuuming up nickels in front of a steamroller" trade. It looks like it works well for a while until it doesn't.
Option pricing has many degrees of freedom. Most result in value frittering away. As a result, most options trade participants lose money. (By design. It's a hedging tool.) The alpha bleeds into the underlying market through market makers' hedging.
The opposite of Robinhooding might be buying a smattering of stocks and holding until infinity. It’s better than constantly trading options, a consistently losing strategy. But I wouldn’t call it a winner.