Buying calls for a living and arguing with derivman

[Derivman]

Quote from nitro:

That is certainly true, especially in seasonal commodities like coffee.

A similar example is Heating Oil vs Gasonline futures. In the winter, people buy Heating Oil futs and Sell Gasonline futs when the cost of heating a home is high. Then in summer they do the opposite because summer is the driving season, and it doesn't cost to heat a home in summer (in the northern latitudes). This trade doesn't always do well, but similar ideas do do well.

Options add at least one layer of complexity to these trades.

nitro

Thank you nitro for the reply. I will not try and pretend to be someone I am not, and I have clearly stated my reasons for posting on Elite. Your contributions are much appreciated, and I hope to be able to post some serious points for discussion over the coming weeks. This is a great opportunity for newbies like myself to grasp the concepts of what is required in order to become proficient in the Options market, to such a degree that profits are realised on a continual basis. After all, is that not the desired outcome for all aspiring traders, to ability to generate consistent profits each and every month from their trading activities. Again, thank you for your post and I look forward to you posting additional information as you see fit. Cheers.
Derivman

 

[MTE]

Quote from Derivman:

MTE, please note my replies to MajorUrsa. You might think that my thread is ridiculous, but I can assure you that I do not, nor does my instructor. Again, it is a free country and you are free to do whatever you like. All that I ask is that if you are going to post in my thread, then please stick to the topic, which again, I myself was reminded to do on another thread, after which I then left. Cheers.
Derivman

This thread has over 150 replies yet it hasn't moved one bit from the opening "argument", so to speak. You ask for guidance yet you refuse to listen to others continously referring back to your experts. Why don't you just pick a side and move on to making money trading!?

 

[Derivman]

Quote from atticus:

Let me guess... CYOF? This mentor is the one who espoused this +sum, selling bias [il]logic? Do you consider your mentor to be on the same-strata as the fat chick or John Summa? My condolences if that is the case.

It's obvious to anyone with brain-activity that this bizarro-dialectic is an attempt to prove that short puts are superior to long calls.

You ARE the edge in the market if you believe that to be the case.

My Dear atticus, it is now obvious that you have no intent but to disrupt this thread, along with some others. Please refrain from bullying and mockery. Your last comment is noted in relation to an "edge" and in that respect I will not report you to the mods, but I can assure you my patience is growing thin, very thin, as a matter of fact. What is your problem. Why are you trying to stop me and others learning. I have not done anything to anyone, and here I am now treated like some invader from space, who has three heads and sixteen eyes. Again, I ask you to please post on topic, and if you will not do it for me, then please do it for the sake of the other newbies that are trying to learn something on Elite, for it is, after all, an educational trading website. Cheers.
Derivman

 

[atticus]

Quote from Derivman:

I am now treated like some invader from space, who has three heads and sixteen eyes.

5.33_ per head?

The "edge" comment wasn't complimentary.

 

[IV_Trader]

Quote from Derivman:

My Dear atticus, it is now obvious that you have no intent but to disrupt this thread, along with some others. Please refrain from bullying and mockery. Your last comment is noted in relation to an "edge" and in that respect I will not report you to the mods, but I can assure you my patience is growing thin, very thin, as a matter of fact. What is your problem. Why are you trying to stop me and others learning. I have not done anything to anyone, and here I am now treated like some invader from space, who has three heads and sixteen eyes. Again, I ask you to please post on topic, and if you will not do it for me, then please do it for the sake of the other newbies that are trying to learn something on Elite, for it is, after all, an educational trading website. Cheers.
Derivman

can you remind us what the topic was ?
Thanks !

 

[FullyArticulate]

Quote from nitro:

In the winter, people buy Heating Oil futs and Sell Gasonline futs

You've got to shift the demand back a bit for this relationship to make sense--commercials have to buy in advance of the demand from their customers, and generally stock up reasonably well before the season hits. (If everyone waited to buy their HO until winter, the prices would be insane)

There is a strong bias in HO vs RB from Aug through Oct, but at that point, RB outperforms through the winter.

In any case, this year has been extraordinarily poor for energy seasonality performance. (Seasonally strong RB spreads are so far 0 for 61 this year, as an example)

The attached image is 15 year seasonality of HO vs RB.

 

[Derivman]

Quote from opt789:

I'll bite. Who is this "veteran Option Trader"? What are his qualifications? I would bet there are members of this site who have more experience.

My Dear opt789. As some of you seem to be very impatient, and I thought that it would be the other way around, and that is, us newbies will be impatient, I will post the following for you to consider and reply to. Cheers.
Derivman

Can you tell if this quote is from an expert, or from one who thinks that he / she is an expert, or is it from a novice?


"1. The writer can KEEP the initial CREDIT and ROLL position to another month and take MORE CREDIT when position goes against him!!

2. "The buyer can do the same"!

Being able to buy back a short option position and then simultaneously sell another (roll) has no bearing on edge. An option buyer has the ability to roll too."

 

[Profitaker]

Quote from MTE:

This thread has over 150 replies yet it hasn't moved one bit from the opening "argument", so to speak. You ask for guidance yet you refuse to listen to others continously referring back to your experts. Why don't you just pick a side and move on to making money trading!?

His only wish is to disrupt and destroy constructive dialogue. Read his posts - he has no interest whatsoever in learning anything about options. I urge the moderators to ban this arsehole.

 

[Derivman]

Quote from Profitaker:

His only wish is to disrupt and destroy constructive dialogue. Read his posts - he has no interest whatsoever in learning anything about options. I urge the moderators to ban this arsehole.

My Dear Profitaker. Your rudeness and choice of words leave a lot to be desired. I will note that I am the one who is trying to make this thread work, but I keep getting put down by you and others here. Can you please tell me why this is, and why you do not want me posting. I have never done anything to you, or the others, and now when I have a chance to better myself as a trader, you and the others here, are trying to disrupt my education. Surely it is you that should be reported to the mods, and I am now very tempted to do so. I am amazed to see this type of language you are throwing around on Elite and I am now wondering if this is breaking the rules as laid down by the mods. You may withdraw your statement and apologize to me, and I am sure that the mods will then overlook this incident. Cheers.
Derivman

 

[Profitaker]

Quote from Derivman:

My Dear Profitaker. Your rudeness and choice of words leave a lot to be desired. I will note that I am the one who is trying to make this thread work, but I keep getting put down by you and others here. Can you please tell me why this is, and why you do not want me posting. I have never done anything to you, ot the others, and now when I have a chance to better myself as a trader, you and the others here, are trying to disrupt my education. Surely it is you that should be reported to the mods, and I am now very tempted to do so. I am amazed to see this type of language been throwing around on Elite and I am now wondering if this is breaking the rules as laid down by the mods. You may withdraw your statement and apologize to me, and I am sure that the mods will then overlook this incident. Cheers.
Derivman

You are embarrassingly transparent. Once again you talk about everything and anything except.... options.

your pretence of seeking advice cuts no ice with me - all you seek is attention, in whatever form it may come, as did Socrates, until he was exposed as a lieing cheat. You are almost at that point now !

Hopefully ET will rid itself if this beelzebub sooner rather than later.