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So is it fair to say that to use a neutral strategy you are in essence predicting direction as neither advance or retreat?

Just wanted to direct this question to dagnyt and guy990opl: How much of your strategy do you attribute to directional predictability? Without the benefit of options how do you see yourself?

This is what it all boils down to. By predicting what will happen in the future regarding the movement of the underlying, whether it be movement or non movement, options allow you to take full advantage of that. Even more so you can adjust your position not only on where the underlying may go...

Great you had to open your BIG mouth! now everyone knows the best timeframe. It will be a self fulfilling prophecy and will cease to work by tuesday. thanks alot, I now have to go get a real job. j/k happy holidays!

Only around what, one or two percent of traders (short term) are successful right? And then some can only break even and most all fail... so is there a statistic or at least a concesus on option traders? I figured any joe can open an account and learn to hit the bid or ask and blow the acc in...

Not sure but the 58 second time frame is definitely second best.

Does charting options give you any kind of edge since most do not? Can there be some sort of arbitrage opportunity by watching the movement of underlying to price that cannot be as obvious as looking at the numbers? And why would there be less sellers for spy options in jan? Sounds like...

Yea its that IV that got me last time. So is it basically a selling indicator when IV is high and buy when low (in general)? Well aside from doing what the market does... I don't think anyone that trades for themselves, for a living, does so by doing what the market does... there isn't any...

Good stuff spindr0. Thats what I thought that with leverage you'll make out the best with the far OTM's. But I guess if your timing is off the OTM's are all time value and you'll pay more if you wait too long. Wow learning alot here and its all making more sense now. I don't know if I...

Very much, read that post twice.

wow I did the same EXACT thing on my first few forex trades. Sucks cause it says IDEALPRO when you fill out the order but sure enough if its not big enough it will just go right to IDEAL. Were you trading using market orders? I think its better anyway to use limits and then your only...

Ya know I was reading about the greeks and understood what they represented until I open up my trading screen and go to make a move. But thanks i'll keep an eye on the delta cause that makes more sense. Well since you guys dont mind me picking at your brains I have a couple more questions...

thanks guys for the reply's. Its just that since I was not around today to see where the options price was I had no idea what potential I had. I don't know how volotile options are, without a chart or some sort of historical data I don't know where price has been and well as for today all I...

Here is the truth. It's a 47.2% retracement not 50%. But the trick is you have to put your finger on the screen and say, "don't even think about it Mr. Candle!".

I bought the Spy jan 16, 91 Put on tues 16th. It gained .30 after todays drop. I was confused why after looking at the chains for the same expiration why almost all of the OTM puts lost value today after Spy was down almost 2%. I thought that as the price moves closer to the strike, granted...

thanks intradaybill, I actually just bought myself a little early xmas gift and picked up that book. Sometimes I feel its hard enough just to find worth while information let alone implementing it. Recomendations are a little more reassuring than judging by the cover. Thanks again. -Ray

Let me ask you something, when you have a niche and can comfortably increase the size of your trades, how long before the compounding effect reaches a limit?

wasn't there any transparency, why didn't people see where the money was going? Maybe it was legit up until a certain point. How hard would it have been for Madoff to line pockets of his fam and then simply say its all just a ponzi... this year is wiping out accounts, people will do crazy things

just a thought experiment... say a hundred people each starting with the same size account began trading only limited on their holding period and size. Every trade long or short was based on nothing and was totally random. If this was conducted everyday for a year the ending balances would be...

Assuming that your strategy doesn't incorporate fundamentals, I was wondering that since the markets are fractal (or maybe some don't think so), couldn't you take a long term strategy and apply it to a shorter time frame with the same R:R?