Buying Naked Calls

taowave said:
Spot on Wheez.

There is alot of home made option theory being spewed,and Dest is giving a remedial course in option theory to a guy who has no option understanding..

OP,you need to up your game..
Put the time in to comprehend what Dest is saying,and more important to spot when people are making up their own rules of option theory..
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And this is where Option Traders (real ones I mean) usually fail.

To trade Options (really trade them, instead of talking about them), you have to have some amount of intelligence. IQ > 80

Which usually attracts intelligent people.

Over time, what happens is you a bunch of Option Traders in a room, and the entire paradigm become ... trying to sound more intelligent ... which becomes more important than getting ... basic ... beginning principles across to newcomers.

And as I've said ... numerous times ... (basic to teaching any concept) to get basic beginning principles across to folks new to options? You have to begin with topics that later, get ... shall we say ... corrected.

Is everything distributed normally across option prices? Of course not.

Do you teach normal distribution to a newcomer?

Of course you do.
 
You stated that a falling IV helps your long LEAPS call. You’re trying to sell a bill of goods to noobs on here but you can’t read the bill.
 
In fact, something for the OP?

Don't get discouraged, thinking Options is beyond you or something.

You know what I always ... always ... see nail the guys out to prove how smart they are?

The simple concepts.

The simple concepts are literally beneath them, and they end up not seeing the Forest for the trees.

I watched two guys ... a math PhD and an old school Floor Trader discuss "What is a Sharpe Ratio" for about an hour. At the end of the hour, there was no clear communication, and the Old School Floor Trader was no closer to understanding the strengths and weaknesses of the measurement. In fact, although the Math PhD could explain the math of the ratio, I'm not even sure HE understood how it is used in a practical sense.

Practical application.

Simplicity ... is best.
 
taowave said:
Spot on Wheez.

There is alot of home made option theory being spewed,and Dest is giving a remedial course in option theory to a guy who has no option understanding..

OP,you need to up your game..
Put the time in to comprehend what Dest is saying,and more important to spot when people are making up their own rules of option theory..
More...

Would love to! That is why I am here, to get help and pointed in the right direction. However I was told to read a book .... no books mentioned. I was told to take advice from people who "actually know" options trading ... no names given because that would be rude ??

So, being new to options makes it hard as F to really start and find who is good and who is full of shit when I cant get basic starting websites/books to read, or someone on youtube who is truthful etc etc

So any help there would be amazing ... OR I can keep coming up with questions and posting here and watch yall shit all over each other for who is smarter and who doesnt know anything :) and hopefully somewhere in the keyboard wars, I can gather some semblance of an answer to my question.
 
Virtually everything that ravar stated about volatility trading was wrong. You equate a microcephalic noob being free with his time as somehow worthwhile because he was nice to you.

You have been told by numerous pros that ravar is clueless yet you cannot make the call, so go read a book.

Thirty pages into any legitimate text will answer your questions. Perhaps 300 pages into Hull.

 
Wheezooo has spent much/all of his working career as a exchange local/OMM. Schmit at O'Connor, etc. I started my career at HTC. Don't believe us; read Hull and come back when you hit that epiphany.
 
Bushwacked9 said:
I am curious how far ITM y'all would go? If you have a stock with a solid upward trend and news is all positive so there a solid chance it will still Gain another 5-10% for example in the next couple months.

Do you go more off entry Price and what % that possible loss is to your overall account?

Do you have certain stocks you always follow for this type of option?

Do you base it more on RSI below 30 on a 90,120,180 day RSI trend?

Sorry for the basic stuff... Just starting to play with some strategies here on my paper money account to see if I can come up with my own tweaked strategy
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You're conflating moneyness and RSI. So yes, there are dumb questions. Ask about RSI in the TA section.

You state that the stock has 5-10% left in the tank, but you introduce RSI for timing.

Allocation? Use Kelly. One-liner? Your allocation should be edge-dependent.

https://tinyurl.com/vjgytou
 
destriero said:
Virtually everything that ravar stated about volatility trading was wrong. You equate a microcephalic noob being free with his time as somehow worthwhile because he was nice to you.

You have been told by numerous pros that ravar is clueless yet you cannot make the call, so go read a book.

Thirty pages into any legitimate text will answer your questions. Perhaps 300 pages into Hull.

More...

see.... 7 pages in I finally get an author name lol. That is something I can work with
 
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