My Options Play

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Quote from optionpro007:

Riskarb:

I have great respect for your experience. I also know you make your money selling options involving sophisticated strategies. (at least to me)

I have never sold an option, nor do I ever plan to do so.

Question: In your experience, have all options net buyers you have met, been unsuccessful in the long run?

It would appear, Multi has been successful for a number of years.

Any comments ?

Thanks !
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The most successful go long or short with equanimity. "Net long" isn't terribly meaningful, but there are many net-long option traders who are successful. Now, if you're referring to "long-only" then I would have to say that I've never come across any who were proven successful enough to earn a comfortable living at it. Sure, there are guys who bought puts into the '87 crash, but that's a one-off event.

Ppl who have parlayed long premium into large sums invariably don't stop until they give it all back.
 
Quote from uninvited_guest:

I don't think so. He claims to be successful but his trades were GAMBLING and RECKLESS. I doubt he will be back.
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It's really all a matter of perspective.

1.- For some of us, 10K could be considered less than 2% of a particular trading account...so losing this amount in any one trade is not a big deal....

2.- You gave him a negative review and prognosticated failure, before he was actually able to proof himself. risky :)

How about posting any of your trades ? You seem very able to criticize others, can you take criticism that well too ?

Show us the goods...if you can.:)
 
I assume the other side is a short sell for 0.25?
Yes you are right but that was for December and not for Jan

If TXN swings $10.00+ in AH (it does happen) then you are in big trouble, not worth the 0.50 credit.
If that happens, yes I will be in trouble. I have made 30K to 74K in 11 months with one down month. I know that I am taking risk. I have some money in 4% CD. If I would consider my trading with 120% profit as risk free I would not put my money in CD and invest all of them. Now if you don't like nickel and dime and say you invest in GOOG at 400 and if tomorrow morning it opens at $350 (the same possibility if TXN swings $10, 33% AH) you will also be in trouble.
Case 2: Say you buy PUT 30 for TXN and AH as you say, it goes up $10 that is quite possible as you said ,"ALL" your investment is gone!!
Case 3: Say you buy CALL TXN for 30 and AH as you say it goes down $10 that is quite possible as you said ,again "ALL" your investment is gone!!!.
Also for option case, you can not trade them AH or BH and your only choice will be to trade the stock in pair.
Conclusion: If you are too scared of loss and want to consider the extreme possibilites, you should not trade. I have 11 years of trading experinece and I know how things can turn bad but your warnings is not a solution. Solution will be to show a trade that has profit more than nickel and dime and almost zero probability of losing money. If you say I bought for example Call BBY $45 and I know it will not go below that, I will also say that I also know TXN and I would celebrate the day if my PUT options get assigned and I can get the shares at 27.50.
 
Quote from riskarb:

The most successful go long or short with equanimity. "Net long" isn't terribly meaningful, but there are many net-long option traders who are successful. Now, if you're referring to "long-only" then I would have to say that I've never come across any who were proven successful enough to earn a comfortable living at it. Sure, there are guys who bought puts into the '87 crash, but that's a one-off event.

Ppl who have parlayed long premium into large sums invariably don't stop until they give it all back.
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I am one of those ppl, I must admit I have done what you mention several times. But I am a fiim believer on this side of the business, hence the original question. (thanks for your reply)

I meant only buying options, puts or calls. Did you mean "long only" as only buying calls ? I could see why this wouldn't work.
What is net long options in traders vocabulary ? I thought it meant being long either call or puts.

I am finishing the last touches to my latest system strategy for this part of my portfolio. I should be able to take it out for a test run sometime in Feb..

Even though I consider it entertaining, for this forum, I am not sure if it would be worth posting the trades...

Cheers !
 
Even though I consider it entertaining, for this forum, I am not sure if it would be worth posting the trades...

Space is free. Don't be bashful. Post your trades. I wish you win. We will all learn. But please don't just post your 5 minutes of joy when your trade moves 5 cent in your direction. Also post at the end of each month how you did . Traders tend to become quiet after they lose.
 
Quote from optionpro007:

I meant only buying options, puts or calls. Did you mean "long only" as only buying calls ? I could see why this wouldn't work.
What is net long options in traders vocabulary ? I thought it meant being long either call or puts.
Cheers !
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Net long, meaning long more contracts than you're short. For most it means net-long gamma.
 
Quote from riskarb:

Net long, meaning long more contracts than you're short. For most it means net-long gamma.
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Thanks. Is there a special name, term for being "only long" options?
 
Quote from hajimow:

Even though I consider it entertaining, for this forum, I am not sure if it would be worth posting the trades...

Space is free. Don't be bashful. Post your trades. I wish you win. We will all learn. But please don't just post your 5 minutes of joy when your trade moves 5 cent in your direction. Also post at the end of each month how you did . Traders tend to become quiet after they lose.
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hajimow,

I have learned a lot from posts made on ET by other traders, regardless if they were successful or not.

If I did decide to post trades "for the test run", it would only be for entertainment purposes, not because I would intend to teach anybody my trading strategy or because I am looking for money to manage.

Hope you understand, most successful traders, work endless hours, study hard, take losses and are humbled by the markets everyday for what can be several years, before they break through and become consistently profitable.

I am still not there, but when I do become, I will be one of those who will become silent.....

You just learn to be humble and a fierce protector of your trading methodology.

Good luck, and pay attention to Riskarb. He knows what he is talking about.

Cheers !
 
Quote from optionpro007:

It's really all a matter of perspective.

1.- For some of us, 10K could be considered less than 2% of a particular trading account...so losing this amount in any one trade is not a big deal....

2.- You gave him a negative review and prognosticated failure, before he was actually able to proof himself. risky :)

How about posting any of your trades ? You seem very able to criticize others, can you take criticism that well too ?

Show us the goods...if you can.:)
More...


optionpro007.........My answer to your question and riskarb's answer both have the same conclusion, both worded very differently but same conclusion.

Do you not see that?
 
I admire Multioption because he was a real man and risk taker. Although he lost but I am sure he had got good money before and will do again. I did not agree with his trades though as it seems that no one agrees with my trades.
Talking is cheap. I can also recommend, buy low, sell high, manage your loss, don't be greedy, fear and greed are two important factors that affect your performance. Buy in uptrend sell when it is going down. If market goes against you, you will lose money and if it goes in your favor you will get money !!
But If I can not give an example or post my trades, or show my performance, I will not be of any help. It will be like a child molester priest :=)
I also admire Iceman who posts his thoughts and exact trades and the price that he gets in. Even if he fails
 
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