Gold/Silver Raito

[cdcaveman]

Quote from Don Bright:

Options trading is simply betting that you know more than all the experts in the world, with all the top tools and best information. You're betting on the next expiration's volatility movement. In the good old days, and still "ok" today, you can sell near term, but far outs, delta neutral, and roll over as the first expiry gets close, or let them go out worthless. The near terms go out worthless much of the time, but the 6 month or so far outs will hold some of their value, you sell the 1 month, then the 2 month etc. Won't work all the time, but not a bad way to play, if you insist on trading options. IMO.

Don

I get the increase in gamma risk in front month options.. requires a lot more frequency of adjustment etc... but "if you insist on trading options". You act like they are yesterday's news... I guess you don't fancy them.. why is that.....

 

[Cereal]

Silver is nice but never forget that when it goes down it goes down hard, if not look at the charts for the last 1.5/2 years...I know, I was there.

 

[Don Bright]

Quote from cdcaveman:

I get the increase in gamma risk in front month options.. requires a lot more frequency of adjustment etc... but "if you insist on trading options". You act like they are yesterday's news... I guess you don't fancy them.. why is that.....

Oh, just because we did all the options stuff back in the 80's, not much money to be made from the pro's these days. All the stuff we did back then was done with 50 cent or full dollar edges, nothing like that now. Just partial pennies IMO.

Send me another PM with specific questions, and I'll be glad to answer. I really don't like bursting bubbles here on the forum.

Don