What exactly is the OptionPit edge? Anyone taken a course from there that can give some feedback?
Option Pit
- Thread starter Chris Paciello
- Start date
Probably that their team is comprised of former market makers and floor traders. They understand the proper way to use options as an investment vehicle. There are a lot of educators out there that use options in ways they were never intended to be used - kinda funny actually - for example a guy who uses butterfly spreads to capture delta or calendars for theta decay. Nobody says you can't do this but the edge you're trying to capture quickly falls into the random price movement space in which case it's a hell of a lot easier to trade the underlying.
Let me debunk this widely used myth:
being former market maker gives you ZERO edge as an options trader. ZERO. Market makers made money in a completely different way, not to mention those were completely different times.
OptionPit might or might not have an edge - but if they do, their edge is not coming from them being former market makers.
being former market maker gives you ZERO edge as an options trader. ZERO. Market makers made money in a completely different way, not to mention those were completely different times.
OptionPit might or might not have an edge - but if they do, their edge is not coming from them being former market makers.
MMers have a foundation in synthetics, which is not an edge, but a lack of knowledge about the mechanics/synthetics makes for negative-edge.
Why don't you post a trade to ET in real-time and show us a sample of your edge? Afraid that we'll reverse-engineer the methodology behind those five-lots in AAPL?
If you got the keys to a room filled with gold coins and precious jewels, will you allow anyone to use that key and borrow it for a pittance? "If it sounds too good to be true, it probably, isn't." As someone who has paid for seminars, books, dvds, etc. I probably, have spent over $10,000 and I consider most of it a waste of monies! The books and DVDs might actually, have more value! Atleast, you can re-read the books, watch the DVDs multiple times. A lot of those in the seminars are mere salesmen. Ask yourself, why don't they talk about a single setup in their pitch? All they say is that you will get rich easily in the stockmarket. No talk about the risks of trading and risk management? Why is that? To sell you the seminar, that is why! If these guys were any good, they would be trading instead, of trying to sell seminars? With a little effort, they can be easily making tens of thousands of dollars in one trade so, why settle for a few thousand from a few people? I am a self-taught trader who taught myself how to trade options. Now, I made a lot of mistakes because I had no one to guide me. Find a friend who trades and good at it to mentor you! Atleast, if you pay him, it would probably, be worth it!
That AAPL trade alone produced enough gains for someone with 10k portfolio to cover 3 months of subscription fee. Members with 100k portfolios, covered 3 years of subscription fees. With one single trade.
Today we closed NVDA calendar for 20% gain. No directional risk. No holding through earnings.
And no, I will not post it in real time as it would be not fair to our members. But everyone can take a free trial and verify that those trades have been posted in real time by comparing the time on the screenshots with time on the forum posts. Very easy.
According to your logic, why pay tens of thousands to become an engineer? You can learn everything from books/DVDs.
"If you think education is expensive, try ignorance."
That AAPL trade alone produced enough gains for someone with 10k portfolio to cover 3 months of subscription fee. Members with 100k portfolios, covered 3 years of subscription fees. With one single trade.
Today we closed NVDA calendar for 20% gain. No directional risk. No holding through earnings.
And no, I will not post it in real time as it would be not fair to our members. But everyone can take a free trial and verify that those trades have been posted in real time by comparing the time on the screenshots with time on the forum posts. Very easy.
According to your logic, why pay tens of thousands to become an engineer? You can learn everything from books/DVDs.
"If you think education is expensive, try ignorance."
Read it again. What I said was a lot of those selling seminars are misrepresenting themselves.
I know I paid for a couple of them. Like it or not, there would be dishonest people out there as well as others who are honest selling their seminars which actually teach you something which is why I suggested seeking out a good trader who is a friend to be someone's mentor if they needed it. You cannot get enough of knowledge and although, I taught myself, I am not close minded to think I know everything. I still learn new things everyday. I am a directional options swing trader.
As to your service, I have no opinion of it as I do not trade option spreads nor have availed of your trial offer. Your members would be the ones in the best position to offer an assessment of your service. My comments are in general of my experiences, no less of those offering seminars. "I repeat. I have no opinion of your service."
That AAPL trade alone produced enough gains for someone with 10k portfolio to cover 3 months of subscription fee. Members with 100k portfolios, covered 3 years of subscription fees. With one single trade.
Today we closed NVDA calendar for 20% gain. No directional risk. No holding through earnings.
And no, I will not post it in real time as it would be not fair to our members. But everyone can take a free trial and verify that those trades have been posted in real time by comparing the time on the screenshots with time on the forum posts. Very easy.
According to your logic, why pay tens of thousands to become an engineer? You can learn everything from books/DVDs.
"If you think education is expensive, try ignorance."
Short gamma... so no directional risk? Vega risk? Here's one for you... stress the thing with 200% as the front-week vola and see where the vega lands. It's good to see that these posts will be immortalized here as your subs need to see this crap.
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Kim is correct. Very few market makers have transitioned to careers as successful traders or portfolio managers. In our shop we see almost 1000 resumes/candidates a year and most have come from one of the Chicago floors and very few have any real ability to transition - not none, but very few. It has gotten to the point where when someone claims they were a successful MM we discount that experience. Not the same for traders off of bank desks - generally they have a much higher skill-set. Having said that Andrew at Option Pit is a rare gem in the community. We used to do a biweekly podcast and he was good.
No one is any good without great option tools and even educators like Andrew use great screening tools.
No one is any good without great option tools and even educators like Andrew use great screening tools.
200% IV for AAPL? Are you seriously suggesting this as one of the risks of the trade? Have to show this to my members as an example how NOT to analyze a trade.
As with any strategy, there are risks. They are clearly mentioned and discussed on the forum. Yes, negative gamma is the main risk - but the stock had to move almost $10 before earnings for this trade to start losing money. Definitely much less risky than holding through earnings.