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I personally just think we are working off two different schools of thought. There is a proper (read more optimal) way to trade credit spreads. I optimized prior to any trade when dealing with a credit spread making sure the underlying is liquid and the options are liquid. Then I look for...

Not if you learn how to trade them properly. This is a totally untrue statement. That’s like saying Futures = death.

Any financial product can tear you a new one if one doesn't know how to use it. Doing 1 $100 spread is one of the safest plays on the planet. Nothing comparable to this if one trades stock (you can use a stop loss but you are out once triggered; with the spread, there is a possibility that it...

Checkout www.tastytrade.com. They will teach you how to trade options. Realistically though, you more than likely won't meet that goal ($150/day) until you get experience under your belt and more capital to be consistent. Just a suggestion.

You can tell that the authors of the research paper have no direct expierince in trading due to the fact they mention "sub-optimal" gains. An optimal gain is easy to calculate with historic data...good luck while a trade is in action!

Oops! My bad! :D

Stated again, one’s education level is independent of capital level. There are a lot of intelligent people on the planet that don't have large levels of capital. There are also people with capital that don't have high levels of education. These things are not one and the same. Last, it may...

I my opinion, the above info on a small trader is bogus. I am a small trader and did not walk the traditional path of working for any financial firm. I did not go to school for finance, economics, or business. My account size is in the 10's of thousands (started off with 6.5k). I can only...

I agree. The way that I'm learning and through my limited experience, I take profits quickly. If a spread does not become profitable from the start, then I sit on it to see if it does (seeing if duration of my trade plays in my favor). This past 2 weeks, TastyTrade has conducted some studies...

I go with what the market provides. There were points through this year where my portfolio mainly contained debit spreads, calendars, and diagonal spreads due to the extremely low vol across the board. At the same time though, scattered throughout that, I was able to due earnings plays that...

I currently have 32 open positions (the way I'm tracking them at least) in 18 different underlyings: AU, BBRY, BBY, CLF, EWW, FB, FXY, GMCR, GRPN, NFLX, QQQ, TBT, TLT, TSLA, UNG, USO, VXX, and XHB. Debit Spread 9 Covered Call 3 Credit Spread 2 Calendar 5 Short Strangle 2 Iron Condor 6...

Reading through this thread (and elite trader forums in general), it would seem that the majority here are directional traders 1st and foremost. I myself started as a retail option trader learning that direction is secondary (or third...depending on who you ask). I use option strategies to play...

But never more than the lower (-6.65) or upper (3.35) bound in general. You may see it a few cents above and below but the spread is locked on how much you can make/lose.

I can understand your argument in terms of someone trying to use web pages like google, yahoo, etc. for their data feeds to trade but 20k-30k setup? I guess it then comes down do trading style wouldn't you think? The folks that I'm learning from just use a laptop and maybe a cellphone/tablet...

It already does cost me that much! Ytd I'm over $4k. I've generated a 38% return Ytd on the portfolio with those cost. Any suggestions on brokers with cheaper cost? I do know that TD does not trade their own desk, the only make money from commissions (in general), so I'm not to worried about...

As a retail option trader myself, I already have access to a trading platform (thinkorswim) that was built from the ground up specifically for that...and it's free! No need for me to pay for a platform. As mentioned in this thread, retail is catching on to what makes real money and what...

If IV is high and HV is contracting (generally after large moves), those "either or situations" are ripe for short straddles/strangles, iron condors, or butterflies.

Jesus! I'm glad I manage my own money now knowing how reckless some "professionals" can be. Good to hear this info Mav!

It sounds like these "Traders" sucked all around...and gave premium selling a bad name to boot! One needs to know where it fits in an overall portfolio strategy...not just sell it willy nilly.

I've gained a lot of experience trading options in the last 8 months just by watching tastytrade on a daily bases. I needed more actionable content (on the job training). I love it! I personably believe that i'm ready for various market conditions from the shows teachings. Above all, I stay...