Anybody trades options without any greek letter?
- Thread starter OddTrader
- Start date
Quote from Buy1Sell2:
Options have a feature that underlying does not. It's called time decay. Nuff said. This is common sense folks. Thank you for your time. --Ishmael
Actually, not enough said! Time decay does NOT equal edge! In general, options are fairly priced, the days of mispricing are long over. So when you sell options you have small wins most of the time, and occasionally get a huge loss that wipes out the wins. When you buy options you lose small most of the time, and occasionally make a big win that covers the losses. After commissions and slippage you're down either way.
Quote from Buy1Sell2:
Option selling has a tremendous advantage over option buying. This is a proven fact and is simply common sense.
Is that the same type of fact and/or common sense so many here on ET refer to when discussing TA and/or price charts, you know with the 95% failure rate. As with most things in life it's not always what you do but how you do it that makes all the difference.
Regards
Johno
Quote from OddTrader:
You're absolutely right! You don't want to be a fool (and make good money), do you? Please don't change your mind, ever!
"Scaling out" is inferior behavior
http://www.elitetrader.com/vb/showthread.php?s=&postid=2523179#post2523179
Quote from OddTrader:
Being a new convert, would you change mind sometime later?
http://www.elitetrader.com/vb/showthread.php?s=&threadid=64098&perpage=40&pagenumber=24
QUOTE
Posted by Buy1Sell2 on 04-05-06 09:48 AM:
I will be shorting the 126 calls tomorrow-- I will scale in.
Posted by Buy1Sell2 on 04-06-06 12:41 AM:
I began the scale in selling of OTM 126 calls in GECM6 today. If prices rise, I will be scaling in also at higher strikes in increasing numbers.
Posted by Buy1Sell2 on 04-28-06 01:51 AM:
I began the scale in of short 128 calls today.
Posted by Buy1Sell2 on 04-28-06 11:07 PM:
I will just continue the scale in of higher strike short calls. This is where I make most of my money generally-- I am never in full on the first short sale and I give plenty of room for adding positions.
Posted by Buy1Sell2 on 04-12-07 11:59 PM:
Research of my trades over the last 12 years (I have not had time to backtest the rest of the years) has revealed that on one individual trade I may have done better by averaging or scaling in, but longterm I would have been much more successful by entering the whole position at once. Reason being, that I did not have full position on from time to time when big moves occurred. --Also, stops are always determined on the charts so the stop is always at the same area. I just use correct position sizing to avoid losing more than 2 percent of liquid net worth.
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