Let's talk about our returns. Got any?
- Thread starter Adamoptions
- Start date
trading mostly options... relative to my sizing (which often lately is smaller) but still would on an annualized basis, represent a great income.
For example, in February this year I had no losing options trades out of about 18 trades/positions. Not patting my back just replying. Some months I have 4-5 times that number of trades.
I have found that in months where I do/did not as perform well, it was not something 'inherent' in options that "caused" it... (imho) but rather my own strategy and reaction in repairing it that was flawed, and wherein I had let discipline slip in pulling the trigger.
My better prior months have been primarily selling premium. Maybe I started with a credit spread or even backspread... then converted it... into a ratio credit, exited longs/held shorts naked, or vice-versa, converted into strangles or straddles, double credit spreads; etc. etc.
I have also found that as I "improved" my positions sizing. i.e. money management... the performance has improved.
I never understood the blanket indictment of options when you have (large?) numbers of futures and equity traders who also have been unable to outperform, much less make a steady income. This is not a pitch for trading options as there is no doubt more "difficulty" and complexity thereto... just a reply to concerns that you cannot make money doing so.
Personally I think everyone should incorporate "some" options trading into their trading business .
Regards,
Ice
p.s. I would also add that it takes time to get a feel. It is also well-advised to stick to trading options on the same equities so as to learn their "personality" and the "habits" of it's primary MMs and large players (so to speak) and come to learn most 'typical' arb action/pinning and the like into each expiry. For example I trade MRK options over and over again for years, and do very well 75-80% of time.
For example, in February this year I had no losing options trades out of about 18 trades/positions. Not patting my back just replying. Some months I have 4-5 times that number of trades.
I have found that in months where I do/did not as perform well, it was not something 'inherent' in options that "caused" it... (imho) but rather my own strategy and reaction in repairing it that was flawed, and wherein I had let discipline slip in pulling the trigger.
My better prior months have been primarily selling premium. Maybe I started with a credit spread or even backspread... then converted it... into a ratio credit, exited longs/held shorts naked, or vice-versa, converted into strangles or straddles, double credit spreads; etc. etc.
I have also found that as I "improved" my positions sizing. i.e. money management... the performance has improved.
I never understood the blanket indictment of options when you have (large?) numbers of futures and equity traders who also have been unable to outperform, much less make a steady income. This is not a pitch for trading options as there is no doubt more "difficulty" and complexity thereto... just a reply to concerns that you cannot make money doing so.
Personally I think everyone should incorporate "some" options trading into their trading business .
Regards,
Ice
p.s. I would also add that it takes time to get a feel. It is also well-advised to stick to trading options on the same equities so as to learn their "personality" and the "habits" of it's primary MMs and large players (so to speak) and come to learn most 'typical' arb action/pinning and the like into each expiry. For example I trade MRK options over and over again for years, and do very well 75-80% of time.
Pattayatrader, I'm not surprised that it is hard to find truely successful traders. The fact is that the "perceived" low cost of entry into this business and the ease that someone can get started undoubtably attracts many who are unprofessional and lose the bulk of their trading capital before they get a chance to become professional. The fact is that most new businesses of any kind fail, many (like resturants) fail perhaps as frequently as what we are discussing here. If 1 out of 20 people manage to make money at this, I wouldn't be surprised or discouraged. It's not unlike many other business ventures. If you are determined to get good enough to become the one out of twenty and you go slowly, you'll make it.
"Yes"...
This is the second time I've seen this "oh so clever" response. Another comic genius. Please, if you don't want to participate in a serious discussion then don't post anything at all. At least show enough courtesy not to spoil this thread for the rest of us.
This is the second time I've seen this "oh so clever" response. Another comic genius. Please, if you don't want to participate in a serious discussion then don't post anything at all. At least show enough courtesy not to spoil this thread for the rest of us.
as was said in another thread allready, some people here are trying to work a very small edge in options. Most of them should make money, but those who know are probably not to eager to give everything away here, which is normal. Most of this could be considered variations of vol-trading. They are probably the more consistant players, but you can't expect them to give their small edge away. Be prepared to read a lot of rather dense stuff if you want to go that way.
"Are you making any money? How much?" No institutional trader that I know will ever ever ever answer this question straight. These days, I say "well, I am making enough to cover the hospital bills and I certainly have enough saved to cover the funeral".
OTC derivatives traders do make money. Better life through exotics
Pit traders make money. Big quant traders make money - and some times loose big. But I have never heard of anyone who has made any money on their OWN account trading options (or any derivatives, for that matter).
OTC derivatives traders do make money. Better life through exotics
Pit traders make money. Big quant traders make money - and some times loose big. But I have never heard of anyone who has made any money on their OWN account trading options (or any derivatives, for that matter).I've only dabbled in options over the past eight months. I made a total of 12 trades, with a total investment of $9,850 and yielding a total ROI of 27.82%. They were primarily call options with a couple strangles thrown in for good measure.
However, I've decided to abandon options for now because (1) I feel like it's been pure luck so far, (2) there's no simple way to back test any strategies, and (3) the spreads and transaction costs are murder!
Having said that, I think there is a potential to make money in options. But I don't think it should be the primary investment vehicle. Maybe dedicate only 5% of your account to options trading.
However, I've decided to abandon options for now because (1) I feel like it's been pure luck so far, (2) there's no simple way to back test any strategies, and (3) the spreads and transaction costs are murder!
Having said that, I think there is a potential to make money in options. But I don't think it should be the primary investment vehicle. Maybe dedicate only 5% of your account to options trading.