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hi Wayne, I apologise if you took my responce as aggressive.. It was not intended as such.My point is for some it is very important to have all the greeks quantified,but for others a simple stop works just as well.It certainly helps simplify things.. After years of trading on derivative...

Let me ask you,what good is it to know how it will affect your position?? By the time it affects your position,its too late...If you are managing vol its one thing,but if you are trading directionally its much much different.. I dont believe they have a rich mental map of the Greeks..They do...

I am going to vote YES,and I do so by the narrowest of margins.. If a trader can find his niche,become very adept at trading it,and have a sound trading plan he really could get by without knowing any greeks... Would it help to have a decent understanding of implied vol and IV vs...

To the OP, As you have laid claim to extensive backtesting,what is your "percent of perfect" score???

So true... BTW,I only referred to this as a silly thread as the OP was attempting to convince others that there is a universal truth when it comes to scaling... I wish trading was that simple,but it has never been that simple for me...

My apologies, I thought you were referring to me as the armchair warrior with the six pack who has traded less than 5 minutes:)

Its silly because if one has traded over 5 minutes one would know there are no universal truths.. Do you really think the market would permit a consitent edge?? Secondly,until risk adjusted returns are brought into the conversation,its a silly converstion..

This is a very very silly thread,and the OP should know much better assuming he has traded for more than 5 minutes of his life.. Step 1.. Come up with a strategy/system one would like to employ..Backtest it over 10 years plus and diverse market conditions.Test it across non correlated...

Chris,you should understand that selling a naked put is essentially no different than doing the corresponding Buy write. As a premium seller,one bad apple spoils the whole bunch.That is why you MUST be very disciplined. You have lost me on the following And on almost all of the...

Chris, Please do not take this the wrong way,but you should understand options a bit better.Learn synthetic positions and learn the basics of conversions and reversals.I am only trying to save you your hard earned money.. Mark is correct that a Buy Write is essentially the same as a naked...

Hi Mark, I find your method of trading 100% acceptable.In fact that is how I exclusively traded while on the floor,and most of my non directional trades turn into some sort of butterfly(split strike) or condor... At this point of my "trading career",I am soley interested in determining if...

LOL..... Mark,thruth be told,I am an experienced derivative trader desparately trying to break my "bad habits" from years of working in large investment banks and escape my natural "hedgers" mentality and become a "directional" trader... As we all know,the vast majority of the supposed big...

Chris, maybe I am not understanding you,but it appears to me you are simply in the COP 1 year ATM buy write.As we know you are simply short the put... Yet you say you wouldnt be naked short calls or puts trying to sell IV.As far as I can see,thats exactly what you did.What am I missing...

Chris, I am glad you said that as I have said the very same thing over and over and every time the stock tanks to the level I thought I wanted to own it at,I do NOT want to own it!! I have since traded spreads similar to Yucca,but as a pre-emptive measure I spend a portion of the money I...

Mark,the real problem is,and I do not mean any disrespectbut it certainly appears you are not a directional trader,nor do you think like one.You have a floor traders mentality,and that is why we are speaking different languages As an "iron condor" trader,I now understand where you are...

Mark,much of our differences stem from your view on point #5..I dont agree with your view You do not seem to look at option delta's when comapring spreads vs naked options.I think that is a mistake as your P&L will make a very large distinction on a daly accounting basis. You simply should...

Mark,if the purpose of buying options is not to own a position,or should we say REPLICATE a position that is equivalant to owning the stock,then what exactly are you suggesting??? Are ytou saying since an option has a reduced risk,you should load up???Or are you saying due to the fact that it...

There really isnt a difference in a "continuously" traded framework.Most traders by and large do not apply position sizing algos and MM to option trading.They are under a false pretense that the leverage factor/limited risk should dictate a different approach to trading...i.e...

You are making the same mistake Yucca does....If its starts toppling,its over....You have a losing position that you are adjusting way too late

Interesting discussion,but I think you guys are missing the point... First and foremost,there is no hard fast rule regarding spreads vs naked options.We all know that the level of implied vol should/will be the major factor in determining which path we choose.The same could be said for...