Are options a waste of time and money? (pun intended)

destriero said:
There is no vega in a 4-day. The price is sticky so the vols are generally meaningless. What have you accomplished in buying the risk reversal for a four cent credit? And I have no idea where you got your vols from. It appears you've priced Friday's closing data (premium) with today's date.
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Yes it was closing stats so basically go out 45 days minimum?
 
taowave said:
Pics and I break out my Wyckoff course and go back to point and figure and give up options
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Windlesham1 said:
When you understand options are about relationships you will transition to being a calm profitable trader. For 24 years, and with my tiny brain I have made a decent living. I don't choose to upscale but my ROCE is generally 100% p.a. From my blog:
Trade 321 16June
Here we sell 2x the near month, July strangle 7400 puts,(24) 7825 calls(24), and we buy one August strangle: 7400 puts (55.5) and 7825 calls (44.5) .Here’s the numbers: 55.5+44.5= 100 and 24+24 (x2)= 96. Our cost therefore is 4
FTSE expired at 7650 so front month went out for zero, leaving us with a nice profit.
WIN! 7400 put 28.5 7825call 23=51.5- our cost 4= 47.5(£475 on margin £3,000 in 35 days )
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Hey question about rolling a protective put...doesn't matter when itm/otm etc because its the same cost basis? Its like selling a home to buy a home...doesn't matter what the market is doing. Or should I roll into a spread? I think the money I save/gain is less than what I will lose on the other side if max loss...will analyze later.
 
Overnight said:
Pretty keen how dest just about nailed your model and year. You sure you want to keep poking that bear with the options stick?
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Well I haven't seen his Lambo yet. Besides anybody who knows Lambos knows the V10 of the pre-LP is a beast. ;)
 
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