How did you learn the intricate rules of trading Futs and Opts ?

[traderwald]

@Scataphagos



Guess what I mean by intricate details is one such thing that I learned on the forum - that the options do not close at 4:00 on the last date - because they are open until all the exercise etc. is settled and that any short position on options.

Also that the ATM options can be exercised !

I guess there would be other such technical details which the basic definitions would not cover in detail.

 

[Baozi]

Every time I learned one of those tiny but important details it was because I lost a bunch of $$ on it.

 

[TheBigShort]

"Sorry I can't get into details.."

LOOL We all know who this is directed towards!

I feel like this is how the standard PM to dest goes.

Everyone : "Hey Dest, how do you choose your butterfly strikes"

Dest : "I look at a local vol model before I flip delta and gamma. Then I see if the payoff is bimodal. If it's not I create a truncated distro to model the area under the curve. After that I price the risk reversal and check the polar coordinates of the dgamma/dvega".

Everyone : "That's awesome! Can you explain it again in english."

Dest : "Sorry I can't get into details".

 

[Overnight]

Hi guys,

How did you learn the intricate rules of trading Futs and Opts ? Please answer the poll as well as any detail you would have here.

If you wished for an even-keeled answer, you'd have posted this question/poll in the trading section. But since it is in the options section, I can respond only with, "Options folks are insane. Stick with futures, you live longer."

 

[Overnight]

If you wished for an even-keeled answer, you'd have posted this question/poll in the trading section. But since it is in the options section, I can respond only with, "Options folks are insane. Stick with futures, you live longer."

And some music, for the hell of it.

 

[REDP1800]

options and futures have risk and reward. the risk is the same now a days with everything electronic

 

[REDP1800]

pay attention to animal behavior in the wild and intimidation techniques. understand your segment of the mkt and who u are to the mkt and make sure you trade differently

 

[HobbyTrading]

You forgot to include one important choice in the poll: OJT, in other words, learning by doing.

 

[Overnight]

You forgot to include one important choice in the poll: OJT, in other words, learning by doing.

You mean, doing it in the real world? OMG, that is heathen! That involves homework and stuff.

 

[ETJ]

It's Chicago and everyone who had an interest had the opportunity to be a clerk, runner or ripper.