No offense, but anyone using the handle RealProTrader most likely isn't.
Just an observation. My apologies if I'm wrong. Good trades to you.
Monthly Income Generated
- Thread starter nycderivtrader
- Start date
Just an observation. My apologies if I'm wrong. Good trades to you.
Very true, but I'm strictly small-time. And my "overbought" models show a tendency toward positive expectation if sold at least 5% OTM. I also like the idea of occasionally being able to just let the spreads expire without paying the spread and commish to close 'em, hence the Bear Call verts. It would be tougher to do, if they were nearer the money. At least with my swing trade models.
You'd think the markets would be wanting to rest a bit from the steady uptrend - at least over the Summer. But I keep getting my shorts stomped...
You don't make that much, that is your problem. You don't know how to be an income generating trader making a safe 5-10% every month.
All my trades are safe month to month index option plays and few stocks. I don't chase DNDN and breakouts and daytrade and I am not a pharmacy player betting on drug stocks.
When you grow up and talk civil, read this post again.
I made $ 8412 dollars as of todays close in the month of July 2007 with an account collateral of about 91,000K to 110,000. This is all option selling and no stock trading involved. If I hadn't taken a gash of a $2600 last minute trading loss on Friday from GS bull put spread, I would be that much more ahead, but that has to happen.
I see that some of you are already raising the force fields.
OK, let me spell it out.
Why should I, or anyone, for that matter, post their trading results on a public forum. A child would not ask such a silly question.
Now, what all of you should have asked me, is, how are you able to make this type of return trading Options.
Then, I would have replied, in an honest and confident manner,
"Easy, for I know what I am doing".
You all speak of Volatility and I expect before long we will get Skew and Mean Diversion mentioned.
What all of you so called Professional Traders do not know, is that all of that information is a smoke screen, and the real details can be easily spotted once you know where to look.
I have already given you all a clue as to how the majority use the BS model in the wrong context, but I dont see any one Professional stepping up to confirm this.
This in itself makes me doubt as to how many RealProTraders we have here, apart from myself, I have not seen one as of yet.
So, please answer the questions put to you, so that the readers may digest the information and make up their own minds as to who knows what about what.
Force fields and smoke screens are not required, just a simple plain answer to my questions.
Now, that is not much to ask from Elite Traders, is it !!
RPT
OK, let me spell it out.
Why should I, or anyone, for that matter, post their trading results on a public forum. A child would not ask such a silly question.
Now, what all of you should have asked me, is, how are you able to make this type of return trading Options.
Then, I would have replied, in an honest and confident manner,
"Easy, for I know what I am doing".
You all speak of Volatility and I expect before long we will get Skew and Mean Diversion mentioned.
What all of you so called Professional Traders do not know, is that all of that information is a smoke screen, and the real details can be easily spotted once you know where to look.
I have already given you all a clue as to how the majority use the BS model in the wrong context, but I dont see any one Professional stepping up to confirm this.
This in itself makes me doubt as to how many RealProTraders we have here, apart from myself, I have not seen one as of yet.
So, please answer the questions put to you, so that the readers may digest the information and make up their own minds as to who knows what about what.
Force fields and smoke screens are not required, just a simple plain answer to my questions.
Now, that is not much to ask from Elite Traders, is it !!
RPT
I was in the market, it didn't fizzle me, since I am not a directional trader. Next day I wrote spreads on GM, GRMN and some other stock. I should have waited few days and the market tanked a little more taking all my positions underwater, but I had 45 days ahead of me and when it bounced I was out with profits.
I am amazed to see how so many so called Professional Traders are nothing but web posters passing their time. Professional Trading is exactly what it says, and if you do not know the meaning of Professional, then please take the time to find out.
RPT [/B][/QUOTE]
How does a professional trader looks like? Dark glasses and bandana around his forehead?
I buy my milk and coffee from trading, therefore, I make my living from this craft and if that is what I practice everyday, my craft of writing options, I guess that makes me a professional trader.
But I am here swatting flies just like you are and passing time.
RPT [/B][/QUOTE]
How does a professional trader looks like? Dark glasses and bandana around his forehead?
I buy my milk and coffee from trading, therefore, I make my living from this craft and if that is what I practice everyday, my craft of writing options, I guess that makes me a professional trader.
But I am here swatting flies just like you are and passing time.
And why do you just Write Options ?
It takes two sides to make a market, and, surely, depending on the underlying movements, it can, at times, be more profitable to Buy Options as opposed to Writing them !
I am amazed to see so much hype about writing Options, and even more amazed to see how so many seem to know very little about how the markets actually work.
If the underlying is trending up, are you better off to sell naked Puts, or buy Calls ?
And, more importantly, how does one determine if the Option Premium is sufficient to enable a decent profit to be realised if the underlying continues its trend.
I have stated that the majority use the BS model in the wrong context, and they look for cheap Options, when, in fact, they should be looking for expensive Options.
I did not, however, state as to whether one should be a writer or a buyer, when these expensive Options are uncovered, and I also did not state, if one should be writing, or buying, Puts or Calls.
I write Options, I buy Options, I close Options trades at a profit, and I close Option trades at a loss, and, sometimes I don't trade Options at all !
There are many Options Strategies as we all know, and most of them are of no use at all to the retail trader. If you have sufficient capital, then you can utilize Options to their fullest potential, but it is not a game for pocket money traders. Options trading is for the big players, and it is not unusual to see a multi million dollar trade going off with executed Options trades as the pre-requisite to the trade in the underlying hitting the markets.
Markets move for a reason, although many want you to believe that the markets are random. This is pure and utter nonsense, and is just another smoke screen used by the big players in the game.
Yesterdays curbs were well anticipated by those who knew what to look for, and when the public were buying every dip frantically over the last few weeks, the big players were happily selling to them. It was like watching someone handing out candy for a cent, knowing too well, that the candy bars would soon be dropped on the ground unopened, so that it would be a mere effortless task of just picking them up again !
RPT
It takes two sides to make a market, and, surely, depending on the underlying movements, it can, at times, be more profitable to Buy Options as opposed to Writing them !
I am amazed to see so much hype about writing Options, and even more amazed to see how so many seem to know very little about how the markets actually work.
If the underlying is trending up, are you better off to sell naked Puts, or buy Calls ?
And, more importantly, how does one determine if the Option Premium is sufficient to enable a decent profit to be realised if the underlying continues its trend.
I have stated that the majority use the BS model in the wrong context, and they look for cheap Options, when, in fact, they should be looking for expensive Options.
I did not, however, state as to whether one should be a writer or a buyer, when these expensive Options are uncovered, and I also did not state, if one should be writing, or buying, Puts or Calls.
I write Options, I buy Options, I close Options trades at a profit, and I close Option trades at a loss, and, sometimes I don't trade Options at all !
There are many Options Strategies as we all know, and most of them are of no use at all to the retail trader. If you have sufficient capital, then you can utilize Options to their fullest potential, but it is not a game for pocket money traders. Options trading is for the big players, and it is not unusual to see a multi million dollar trade going off with executed Options trades as the pre-requisite to the trade in the underlying hitting the markets.
Markets move for a reason, although many want you to believe that the markets are random. This is pure and utter nonsense, and is just another smoke screen used by the big players in the game.
Yesterdays curbs were well anticipated by those who knew what to look for, and when the public were buying every dip frantically over the last few weeks, the big players were happily selling to them. It was like watching someone handing out candy for a cent, knowing too well, that the candy bars would soon be dropped on the ground unopened, so that it would be a mere effortless task of just picking them up again !
RPT
Ok, lets see who want's to answer this question !
Why, and when, would a Market Maker bid up the price of a Call Option, knowing that he may have to Buy that Option at that price if someone decides to sell it to him ?
Remember, a Market Maker has to make a market on either side, that is why he is called a Market Maker !
Now, surely if you are buying, then you want to Buy Low, and if you are selling, you want to Sell High.
But, in this case, the Market Maker is bidding up the price and buying High if someone decides to sell him the Option.
Is this logical ?
Or, is there method in his madness ?
Is he not, in effect, paying an Expensive price for the Option ?
And, why did he do this ?
Why did he not drop the bid, and then let someone sell him the Option, for then he would be Buying Low, not Buying High ?
Remember, you Buy a Call if you anticipate the market is going up, and you Buy a Put if you anticipate the market is going down, at least, that is what the all the experts tell you, is it not !
So, if you Sell a Call, you anticipate the market is going down, and if you Sell a Put, you anticipate that the market is going up !
Therefore, which is best and when and why ?
Do you Buy a Call or Sell a Put, or, do you Buy a Put or Sell A Call ?
And what about our friend the Market Maker !
Why is he making Options Expensive and then having to Buy them himself ?
RPT
Why, and when, would a Market Maker bid up the price of a Call Option, knowing that he may have to Buy that Option at that price if someone decides to sell it to him ?
Remember, a Market Maker has to make a market on either side, that is why he is called a Market Maker !
Now, surely if you are buying, then you want to Buy Low, and if you are selling, you want to Sell High.
But, in this case, the Market Maker is bidding up the price and buying High if someone decides to sell him the Option.
Is this logical ?
Or, is there method in his madness ?
Is he not, in effect, paying an Expensive price for the Option ?
And, why did he do this ?
Why did he not drop the bid, and then let someone sell him the Option, for then he would be Buying Low, not Buying High ?
Remember, you Buy a Call if you anticipate the market is going up, and you Buy a Put if you anticipate the market is going down, at least, that is what the all the experts tell you, is it not !
So, if you Sell a Call, you anticipate the market is going down, and if you Sell a Put, you anticipate that the market is going up !
Therefore, which is best and when and why ?
Do you Buy a Call or Sell a Put, or, do you Buy a Put or Sell A Call ?
And what about our friend the Market Maker !
Why is he making Options Expensive and then having to Buy them himself ?
RPT
that explanation of a "pro" is without peer.
day7793, you sound like more of a pro to me than "rpt". he is instigating you all. he will be gone soon.
we all know what a " professional " is. rpt is probably some kid under 25 living at home. there are many people here who are not pro's who can discuss properly some very complex greeks and dissections. once you get in a debate with a legitimate professional (and you will); it will be bloody.
real pro:
before you say something stupid; i am not a professional(and neither are you). i personally know many pro's. i'll put my statements to yours any day, no problem.
to answer the thread starter (nycderivtrader)my trading account size (more like 225k/18k month) and trading seems similar to day7793.