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Paging Warren Buffet...

There is always a "move" somewhere. If a proper retest is a filter that increases your odds, you should stick to it. You'd probably regret the bad trades more than the trades you missed.

Why did you not keep going long??? They had phenomenal news today!

Paper trade a system to see if you have an idea that even works. Then do it live, scaling up, to see if your emotions will get in the way.

I liked this over the past week. Got in around the low range; unfortunately didn't exit Thursday and Friday's dip down took away profits...

I live in NYC. People here are nuts pedestrians. I'd worry about an angry asshole sitting in front of an auto car, because it won't know what to do. I assume the passenger would have to manually solve that situation. Using GPS here is totally fine for driving. If all cars were relayed I'd...

Ah, I see. I had just skimmed ¯\_(ツ)_/¯

Like you said, a naked option has theoretically unlimited loss potential on a gap. You can place a stop loss to limit risk, but if it gaps, you're boned. A stop loss or a spread are both designed to mitigate risk. I'd say with a spread you are at least still in the trade if it recovers. I...

Anthropomorphism is attributing human qualities to something non-human. I think apophenia is much more general; applying meaning to what has none.

Use another option as a stoploss.

Of course, but perhaps group expertise can cull GOOGLE down to some manageable selections. Otherwise, why forum? Knowledge usually helps inform your gut, no? The uneducated might fear something benign or be unaware of danger. I find it hard to believe that you make any decision solely on guts.

I am trying to figure out why you think the underlying's behavior does not affect option pricing. It may be a semantic or language barrier. It seems to me you are saying "direction does not always matter. Volatility can also be profitable." Which we all agree with. But, volatility is a...

Figured it'd be some fun light reading. And how would one make a better risk model for all those < 3 Sigma events?

Chill out dude. Volatility is a part of the underlying's behavior, no?

Option trading is more difficult, because you have to manage the effects of volatility and time decay on the option value. But, my guess is, if you're proficient at trading the underlying, you probably wouldn't be so bad at trading the derivative. General pros/cons: Stocks are usually more...

For those who are on the sidelines who want to go long but are afraid of a correction, why not sell puts until it happens? Might as well collect the premium and hope you're right. Of course, not too right.

I am very surprised, nay, flabbergasted, two posters have stated the spread on ES as being $25, two ticks, and nobody has called that out. It is one tick, $12.50.

Why buy options instead of stock? Liquidity might be different for one than the other. If the stock is cheap, the option should still be cheaper. Known max risk.

IB has a rollover tool as well. But you could also do it manually like mentioned.

I guess if you're long a straddle and it rallies, you don't want to have hedged, since the point of a long straddle is for a strong movement or change in volatility. Whereas for a short straddle it would seem prudent to hedge to protect against an adverse move continuing, and if it returns to...