Hey Maverick74

Quote from chiefraven:

hey mav, what do you trade most often now? futures or options?

and how long do you usually hold your options plays?
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Both. I use options for my month to month positions. Futures for intra-day trading. I have a proprietary trading system that has both a mirco and macro element to it. The option positions are rolled every month. The futures we are out by the close.
 
Quote from optioncoach:

LOL you never discuss specific strategies you do or would do despite all the wonderful advice you give :D
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I have with Sailing. Of course I've made him sign a non disclosure. :D
 
Quote from BountyHunter:

Hey Mav, could you explain what you mean by this?

Thanks for your help.
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Anytime you are short options you should always scalp them. If I have a spread on and I'm short a put for 3.00 and can buy it back for .40, why wouldn't I? I can resell that put for 2.00 and possibly leg into my backspread for a credit and possibly scalp the short put again. As your short options approach zero, the risk/reward inverts. Meaning you are risking more and more to make less and less. But by scalping it, you are actually reversing that and increasing your reward and reducing your risk. CTM backspreads are easy to scalp because they have enough deltas and gamma.

Backspreads are the most versatile option strategy. Because you can trade direction, trade delta neutral, sell juice, play for a big move, gamma scalp, all while having very limited risk.

A good trader will be able to leg into his backspreads for credits and trade direction for free while having unlimited upside and zero risk of taking large hits.
 
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