For those of you that trade options

1. If you never traded options, do you still think you'd be where you are today (just as profitable / unprofitable)?

No. I started having consitent monthly profits when I started selling otions that would expire.

2. What is your primary option strategy?...to speculate or to hedge?

For Monthly Income. I only enter into credit spread option trades on the SPX index to earn 3% to 8% monthly.

3. Have you lost more money learning how to trade options rather than stocks..or any other investment vehicle?

I lost money when I was buying call and put options in the beginning. Once I switched to being a net selling I started earning consistent monthly profits. Using good risk management techniques allows me to roll my credit spreads when the Index is within 10 points of my short position. And the majority of times I have to roll I either break even of get additional credits.

4. Whats one important lesson you learned from trading options that you wish someone told you BEFORE you started?

Be a net selling of options.
 
The most obvious point is if you dont know your basic greeks you are simply not doing your homework and taking a half assed approach.

The two major reasons to be long options and make a directional bet is either

a) you are a very talented market timer and want to employ leverage


b) you suck at market timing but are a decent stock picker and dont want to bother with any form of money managmenet.
 
Quote from momoneythansens:

I don't think anyone did other than optionsfreak, who I'm sure has now left the building. Perhaps the extreme sarcasm embedded in my "no greeks" cheerleading post was once again too subtle to be noticed at first glance? :D

BTW, I'd have to disagree that volatility is a greek but I know what you mean.

MoMoney
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I know volatiltiy isn't a greek nor is time decay nor is price of underlying, but vega/theta/delta/gamma are and if a trader understands the former then he/she would understand the latter. And you're right, mmt, I have yet again missed the embedded sarcasm, lol - my bad :p.
Good Lord, this post has somewhat fallen apart. All I tried to say, obviously totally misunderstood (my fault for not expressing myself well) is that a knowledge of the greeks (even just the basics) is very important to understand how to trade options successfully long term. I know some people try to avoid learning them and look for all kinds of reasons to justify their views. As the old saying goes - "most people stop at the start".
Daddy's boy
 
This is daddy'sboy's daddy. :mad: .Daddy'sboy has been sent to his room and won't be allowed out until he sees the error of his ways. Meanwhile he sends his best wishes to all his friends here on ET (except Arnie, who apparently has been very naughty and refuses to learn the "greeks" and has even called my little boy some mean names). :(
Daddy'sboy's daddy for daddy'sboy
 
Quote from William Rennick:

Forget about them damned greeks, this thing was built in the USA.
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Rennick,

no offense as i presume your post to be a joke but we really dont need to hear someone's paid service calls all over this board. We already have your thread in the journal section.
 
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