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Good comment Wheezoo re volatility, I learnt something there which is actually quite obvious. But re your "Trends are meaningless to a professional options trader", in that comment seems to lie the secrets of success for a retailer. I care very much about trends and wish to use options to trade...

Hi Global. I don't think your response addresses my question, but I find your trading approach quite interesting. I'm fairly accomplished at TA and can certainly idenify a trend and form a view as to possible extent and duration. Given that, I was contemplating whether any advantage exists with...

Ok, thanks for the replies. It got me thinking more clearly about this. IV is the markets perception of future volatilty and compares to historical or realised volatility. HV is calculated as the dispersion of price around a mean over a given time period. So a stock can be trending up and...

Ironchef, yes options further out are priced at a premium. But a higher IV has a marginal impact on price and doesn't appear to compensate the MM for the much greater movement in price that can occur on longer timeframes. Of course further out may be harder to correctly guess the likely future...

I'm a discretionary trader and have built up over many years a good level of expertise in technical analysis focused around classical charting techniques. After working with stocks, then warrants, I started trading single leg options as a way to express directional views. I've done enough of...

Jalee I trade chart patterns all the time but I'd never think of using a computer program to screen them for me. You need a good charting software package where you can easily mark up your own charts with various analytical tools and then train yourself to be able to flick through your own...

Markuzick, I appreciate your effort to use non-professional jargon to a mostly non-professional readership. I immediately got what you were saying, whereas a lot of the posts of the professional guys here I don't absorb or couldn't be bothered. ET would be better if your approach caught on. An...

Papertrading is an excellent way to test a new approach or technique, for an experienced trader. It's unlikely to be effective for an inexperienced trader, as you probably won't papertrade in a realistic way and it wont teach you the mechanics of live trading. Live trade for a while first with...

Yes, those would seem the available alternatives on todays price. Your last sentence seems an odd question.

The answer is to close the trade. Exit. This should be a simple trade but I've struggled to work out what's going on from your info. Is the "60 Euro" a typo? If it was 600 it would make more sense. I was testing these Bull Put as well as Bear Call credit spreads a little while back and found...

The conventional approach I believe is to use a collar, as others have outlined here. As an alternative, I'm wondering whether a Put Ratio Backspread would do the job. You'd have to play with strikes to see if its cheaper than just buying Puts (single leg). Benefit is unlimited upside still...

I was researching a similar question for myself recently for Eurex equity options. I came across Tradestation Global, a UK based company in JV with Interactive Brokers uk. Looks interesting for global trading for retail, wondering if anyone using them. I'm not based in US or a US citizen...

nln1972 yes you've been lucky, but yes it's a sound strategy for certain types of traders. I have no time to trade atm, but last year was testing vertical credit spreads, bull put and bear call and it looked very promising. Different parameters though, I was testing 6wks to expiry, closer to...

Frontyard, your first issue is that the NZ options markets barely exists. I haven't bothered following it but I thought only a literal handful of stocks are covered and it's only a few yesrs old. I wouldn't expect there would be any liquidity to day trade. Not sure the situation with option...

Hi John9999. It's human psychology. Tversky and Kahneman won a Nobel Prize understanding problems like yours. Suggest you go and read up on "Prospect Theory". To try and partly explain (as best I can as a non-Nobel prize winner): 1) If given two choices, a 50/50 chance of winning either...

BeartoBull, you're asking questions that no one can properly give you in a post reply. Years of accumulated wisdom takes years to learn. However for a few pointers I'll offer the following. Firstly, I consider myself expert in technical analysis, but still developing skills in options trading...

Hi Newwurldmn. Can ask what you mean by "local" something? E.g. "local" gamma. I'm sure it's something obvious but I'm not familiar with the term although have seen others use it on ET.

It sounds like you can pick reversals in the market with some accuracy, but guess that your method doesn't tell you how far or fast the move will be. My suggestion would firstly be Bull Put spread for long or Bear Call Spread to go short. With these you are simply betting that the price will...

Hi Ironchef. I'm a retail trader using my own funds, based in Sydney. I've never worked in the finance industry, but do have quite substantial experience as a private trader. It's an important context as I think institutional traders and private traders need to operate somewhat differently...

Is it ok to say that I too trade without Stops... feels like coming out for the first time! I was originally taught to trade with the conventional thinking around use of stops. My win rate was well below where I thought it should be given my skills as an analyst and directional views on...