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Normally after the ex dividend date, a stock goes down. If you buy puts then, isn't easy money then? I know it is already priced in the put options but I don't understand what this means. The put option will still rise after a drop even if you paid a little bit more for the premium. You still...

I see a lot of negativity, jealousy and arrogance on this forum. Are these people failed at trading, frustrated because they are bad traders? Share me your thoughts about this, are there actually people making money here? Let's learn from them in a positive way!

Exactly lindq. That's the beauty of these products, you can even make money in a down market with it. Very profitable if you're on the right side of the trade and that's always short VXX or long XIV.

My strategy is normally 4 months till expiry. Are there other ways to play this safer and with reduced risk without the profits limited?

Yes, but all these strategies above are limited profit. I just want to buy puts but I just want a small insurance if volatility spikes up. What strategies are there on the buy side with options? All these strategies involve selling an option. Never did that before.

Please, explain why

Buying a strip straddle: buying 2 at the money puts and buying 1 at the money call on the VXX. If the VXX spikes it's usually hard so that will put you in break even on the call side. Time decay will keep you good on the put side. thoughts?

I know one thing that would be wise and that is to ignore you. Byeeeeeeeee

Hi everyone, VXX will have a reverse split on august 8 2016, would it be wise to buy some puts? What does the VXX usually do after a reverse split, nog going further up I think? Thoughts? TIA

You are right, my options have mostly an expiration date 3-4 months further, I plan on always selling them at least 2 strike dates (3 weeks) before my expiration, so volatility is reduced.

My alias doesn't say anything about me. So in your opinion, buying simple puts and calls and keeping it simple will not work. So only if you know all the more advanced strategies that exist in option trading, you can make money. Why make it complicated if things can work in a simple way.

That's a litte bit too complicated for me, I don't want to write or sell options. I just want to buy and sell call options. How would this limit my risk with a legged vertical spread?

Yes I understand, but you have to make room for your limit order, so when your stop gets hit, then your limit has also a chance to get filled. I understand if prices fall very fast it will not be easy. I just want to use them in this way: My option is up 100%, there is a big down day in the...

Yes, I intend to use them for options where I have 50%-100% on and just not want to break-even on them so I can still have 25% profits. So it can work normal stop limit orders on very liquid options?

So let's say I have a call option slightly in the money on a highly liquid option stock: Premium I paid is 1.30 $ and right now the premium is at 2 $. A stoploss limit order at 1.65 $ or something. bid/ask spread is 1 cent. This will not work?

Hi everyone, Who uses stoplosses ( or trailing stop loss) when trading options? Is it useful for protecting gains or will this not work? TIA