Hey everybody, thanks for the input so far. I am hoping to find a list of tidbits like below.
Look for underlyings that are liquid (1 to 2 cent spreads)
Trade underlyings with high implied volatility
Be a seller of options premium (not a buyer)
Sell options in the 60 - 30 day to expiration range
Do not listen to others.
Don't trade options!
Being a K.I.S.S. sort of guy, I appreciate things being distilled down to "Do this", and "Don't do that". Like food. I want to see the "10 foods to avoid", and the "10 foods you should be eating".
As some may recall, I'm a mutual fund timer guy. That's like the ambush predator of financial markets. When I see a "good enough" setup, I go for it in size... with my stop at the ready. I have traded the SP futures the same way for years. I'm figuring the same approach to options should work if I get the basic "Do this, don't do that" part right.
Also I recall a story. Back in the '87 market crash, I was still a principal of a B/D. I noticed that one of they guys hadn't been at his desk for over a week after the crash. When I asked around, I was told he quit. I was concerned of course that he'd lost big and was despondent. Happily quite the opposite. He'd apparently bought a load of OTM puts and made >$1 Million in the plunge. He took the money and run! Good for him. I'm not even hoping to make such a score, but with the markets nearing a big top, options seem like a good arrow to have in one's quiver. That's why I'm looking into them.
Look for underlyings that are liquid (1 to 2 cent spreads)
Trade underlyings with high implied volatility
Be a seller of options premium (not a buyer)
Sell options in the 60 - 30 day to expiration range
Do not listen to others.
Don't trade options!
Being a K.I.S.S. sort of guy, I appreciate things being distilled down to "Do this", and "Don't do that". Like food. I want to see the "10 foods to avoid", and the "10 foods you should be eating".
As some may recall, I'm a mutual fund timer guy. That's like the ambush predator of financial markets. When I see a "good enough" setup, I go for it in size... with my stop at the ready. I have traded the SP futures the same way for years. I'm figuring the same approach to options should work if I get the basic "Do this, don't do that" part right.
Also I recall a story. Back in the '87 market crash, I was still a principal of a B/D. I noticed that one of they guys hadn't been at his desk for over a week after the crash. When I asked around, I was told he quit. I was concerned of course that he'd lost big and was despondent. Happily quite the opposite. He'd apparently bought a load of OTM puts and made >$1 Million in the plunge. He took the money and run! Good for him. I'm not even hoping to make such a score, but with the markets nearing a big top, options seem like a good arrow to have in one's quiver. That's why I'm looking into them.
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