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@qlai, with all due respect - I'm afraid that literally every statement that you made about options in your last response is either a non-sequitur, irrelevant, lacking in understanding of the subject, or simply wrong. There's nothing there that I can address; you lack the basic understanding...

The challenge here would be determining which category credit-vs.-debit trading falls into. Option trading in general is indeed subject to fat tails, but I'd be very hesitant about claiming that one has less overall risk than the other. Your cite of Taleb seems to imply that you believe it to be...

Thanks for the pointer. I hadn't yet run across Baird (I'm assuming you mean his "Option Market Making" book), but it looks pretty good (h/t Google Books.) The problem is that I'm still working my way through Hull, whenever I have the brainpower to spare... frankly, worthy of effort as it seems...

Your trading platform should have an indicator for it. Here's what the one in TradeStation looks like:

Risk:reward ratios are always balanced by their complementary win rate. The default overall probability is 50/50 regardless of which one you pick - otherwise, we would all just choose the "more favorable" RRR, and buy islands of our own. :) Identifying situations where it's not exactly 50/50...

Let's take the (by no means unusual) case of a given stock's volatility being at 100%. Take a wild guess at what the chances of doubling that volatility is? Is it a "guess" to bet that it will either stay the same or decrease? All other things held equal, either one of those will benefit a...

Your experience is not implicit in your original post; in fact, the number of obvious errors in it (a delta of .70 - never mind that deltas are typically stated as whole numbers, "100 width spread", 25% credit, etc.) strongly imply the direct opposite. If I'm going to make a trade with a 30%...

It's worth noting that this perspective - and essentially all negative perspectives on this topic - are applicable to every single kind of trade, or any other investment decision. All of them involve risk, and none of them guarantee an edge. I'm not sure why they're being brought up here, as...

Note that I only recommended the available education, and not anyone's specific approach. On that topic, going with what someone else tells you to do is a close equivalent to following the "advice" from the media... and I've already stated my perspective on that.

@Wheezooo, I wasn't quoting you - or anyone. Note the 'variety' qualifier for the general case; I'm grouping the types of advice I've received as I see them. I understand that the distinction you're making is meaningful to you - but I can't see any practical difference, and you don't seem to be...

You have far too many incorrect assumptions (e.g., your concept of delta is backwards, as is your understanding of risk/reward for credit spreads - and you're missing even the most basic risk management techniques such as stops) for anyone to try and help you without first running an entire...

Sure. I'd like to get more skillful at options-related adjustments - knowing which ones make sense in what situation, and understanding their pros and cons - but can't find any material beyond the basic "for ICs, roll the untested side; for singles, roll them out" advice. So far, I've received...

Decrease the amount you're risking; keep decreasing until it doesn't bother you any more, and only increase it when you feel a positive itch for doing so. Shift to sim, or stop trading for a while if you need to. Go do something special for yourself that will get you back on track - go to a...

Thanks for trying.

@Wheezooo, it may be that we can't communicate at all; you have the habit of swinging for the fences and making absolute statements in places where they seem unwarranted. You also seem to get instantly offended when anything you say is questioned. I'm actually trying to understand what you're...

Doing my best to track with you, but... not assuming reversion cuts the ground from under all credit trades, where selling at high IV and expecting vol reversion is the foundation. So, either your basis for trading is different from everything I know, or I'm not getting your point.

No worries - thread confusion happens. :) Cheers!

Interesting. So, as the price moves, you're continuously either taking losses or making gains, despite not having booked either one? That seems rather extreme. I understand the useful side of this perspective, just as I understand the useful side of expecting reversion during the remaining...

[laugh] @Wheezooo, there's a basic principle of communication that says "you can always make someone wrong by shifting scale." You've just done exactly that, by taking it from a discussion in which the OP clearly does not understand even the basics of assignment to a level at which professionals...