Option strategies for trend following?

[jimmyjazz]

There is only one "cost-effective option setup" and that is buying OTM calls or puts within days of expiry.

Listen, you are going to cost people money. I don't care if you lose your OWN money with this cockamamie BS you can't resist dropping in every thread, but for God's sake have some decency and stop spouting ill-formed theories with absolutely no evidence as truth. Honestly, I think you should be banned.

 

[FXforex]

Listen, you are going to cost people money. I don't care if you lose your OWN money with this cockamamie BS you can't resist dropping in every thread, but for God's sake have some decency and stop spouting ill-formed theories with absolutely no evidence as truth. Honestly, I think you should be banned.

jimmyjazz ....... You got your panties in a bunch, again.

This is the Options Forum on a trading site and any viewers should know that options are inherently risky. When trading options you just have to pick your poison, Long OTM Options just happens to be my poison because they offer the most bang for the dollar. What is your poison?

drownpruf is the only person on ET who lost money following my threads, for more info read TWTR - Jun27 2014 40.00 weekly calls After you read the TWTR thread could you post back the mistake drownpruf made?

 

[jimmyjazz]

You're completely delusional. You also asserted that your "poison" is the ONLY poison, which is patently wrong. In fact, unless you plan to be right on price AT EXPIRY, you stand a good chance of taking it in the shorts with your method EVEN IF you call price direction correct.

 

[newwurldmn]

1c is nothing for the $40 stock, but 1c is A LOT for $1 option (1% for one way and 2% for two way). This is not include your commission, let say $2, and your total cost is 6% per trade regardless you win or loss. Don't try to argue your edge will be more than 6% as it is rare and not for retail traders that looking only at tea leaf(chart, indicator, MA, CNBC and etc). A roulette in casino will only need the 2.7% "commission" and they never loss in long term.

Note:
My commission with TOS is only $1.00 due to the size of my account . I know IB will be cheaper but I need a more reliable platform because I only trade SPX and RUT in volume (slightly OTM with about 2 months out) and i need a good filled.
** I never trade SPY options - READ this reply again for 5 times and you know what I mean**

I will no longer respond to this thread. All the best to JC.

Commissions aren't that high when you consider than an option is really just a levered basket of stocks and risk-free ratebonds in one package. And you get gap risk to boot.