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Edge?
- Thread starter atticus
- Start date
Whether it's urban legend or true story, there's an old scam where a futures broker who sends out reco's to a large sample. To the half that hit, he sends out another reco. And again, another reco to the 2nd group of winners.Quote from donnap:
LOL - remind me to never bet against you, but that thought had occurred to me, too. (uh-oh)
Now he has 1/8 of the starting sample who have received 3 straight winning recommendations and he sends them a pitch for a high priced advisory service. Obviously illegal but you gotta admire the thought process.
"There's a fool born every minute." - PT
AFAIK, the only edge is one's skills. It could be identifying trends, patterns, skew, momentum, discipline (not the whips kind), money management, etc. but in and of itself, there's no advantage to an option strategy, long or short. For the most part, the circumstances of the underlying is where it's at. Ya gotta bring something more to the table than cash to lose.Quote from donnap:
I think that the point that atticus is making is that you can put on a high probability trade that makes a great looking return from time decay. But there is no edge to the trade, just high probabilty.
(unlike your proposed multiple goog accts. or atticus' wager, where there's an edge - for you guys.)
How long have you been hearing that there's an edge to selling options? Longer than me, but I've been reading that ever since I started on the yahoo monkey boards way back in the dark ages.
Best edges I know: like poker find fish either people, firms or states.