There is a time and place for deep otm options. I play them occasionally when my model says an issue has a high probability of making a big move in a short period.
I disagree with the gambling analogy regarding this particular strat. Everything we do has gamble in it. Keep total risk small...
Benchmarked PMs playing catchup to secure year end performance fees. They are gonna gun this mkt till Dec 31st.
Dont think too much about it. Its still just humans playing a game...
I have a special situation where I am paying clearing fees only in options.
Right now I trade some limited risk directional and long only volatility plays.
Its nice to basically trade for free but im wondering if I should be capitalizing further on my situation somehow?
And no, im not...
Its completely relevent. In fact my model adjusts for it. sometimes it breaks, most times it works. Ala my belief in expectancy being the most important factor.
Not killing it, but not being killed either...slow and steady wins the race.
Your local library can supply all the reading you can handle on said subjects.
But you make some valid points...outside of 250 being something to be excited about... :D
My point is that higher education is for the best and the brightest. I am not one of those people....so I chose another route.
Are all these "institutions of higher education" really pumping out genius after genius that better society and themselves? Or are they just giving one the false...