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Shorting options is of no interest to me, too advance and complex. Having done enough (almost) research, I've determined to play long options without regret, because I would never like those Greeks (except Ms Delta)! :)...

OK, that's true!

My Dear Friend: If you can identify a trend with great certainty, why not Buy options instead of sell them!

According to Trester (in Chaper 18 of The Compleat Option Player) of The Institute of Options Research, the Advantages of Naked Options Writing are summarised (with 3 pages for detail explanation) as follows: " 1. The potential rewards are outstanding. 2. The odds of wining are strongly in...

I thnk you're right again!! Price-wise, nobody would gain any edge in trading provided the price is at a fair value (but sometimes not/ skewed), basically. The (momentary) edge I mentioned for sellers should be a potential very risky one occassionally if not managed properly just in case.

Of course , that's your edge, which is not provided by options. Selecting a stock to play a certain strategy may not be an edge, but determining timing of playing options with stocks (any one) is definitely an edge. Yes, you're right. I wrote the opposite of what I thought. Agree.

Options, imo, besides its hedging functinality can be used for trading in two main categories: Volitility trading, and Directional trading. In volitility trading, since sellers doesn't need an edge to win, that means options have provided sellers an edge, a natural one; while they...

Then you must be viewing them from an options seller's perspective, I would guess.

Thanks Xflat. 1. OK. 2. imo, trading the underlying needs to be good, an edge, in both its direction and timing. Trading long options requires only timing to be good, also an edge. Trading short options does not need any edge at all. Comemnts? 3. OK. 4. imo, normally...

A Good First Book on Options http://elitetrader.com/vb/showthread.php?s=&postid=1540415 The Best Work on Options Ever Written http://elitetrader.com/vb/showthread.php?s=&postid=1867586 Good books on option selling? http://elitetrader.com/vb/showthread.php?s=&postid=2017489

Exactly, imo, without a complete and risk-adverse system tested and proven today, a serious trader might never have it anytime in the future. :)

Perhaps better learn some Chinese or Japanese nowadays instead!

Yes, slowly step by step, each step may take only several years, if not ten. You will be safe and fine, being a serviving trader! :D

3 more questions: Would you consider to keep long both calls and puts at the same time with a proper/ equal ratio is a good approach? I guess your edge would be selecting the right stock for its moving to the right direction you project, either up or down, and trading at the right timing...

Thanks, you did very well. imo, written rules as above can be useful. As trading is a % game, periodically increasing your gross risk capital by a certain % would be also useful for increasing profit amount in the long run, i guess.

Nice!

Would you mind to share a bit of your risk/ money management rules/ approach? Do you set target price to take profit individually?

The main reason you live in Geelong? :)

Should I say every options buyer is also a seller of options of basically the equal amount of options bought earlier.

Perhaps every seller would know when to buy options once IV is low. That's why option price is kept always high. Of course sellers can simply buy options for hedging, if preferred. Saying large capital in required for sellers to make a living would be either misleading or using inferior strategies.