Optionetics Alternatives...
- Thread starter canyonman00
- Start date
Thanks for the response y'all. I guess the best answer is always combination of both. Unfortunately in the real world it is sometimes impossible to do both.Case of diminishing returns. There is a question of finite capital-option spreads eat up $, there is an issue with finite time. As an option position trader, it takes patience and time to leg into vol spreads coz sometimes spreads fluctuate during the day with unchanged underlying so you need to be there when the skews change momentarily. I can't see doing that while watching the spoos,stock scanning, watching the specialist for trade thrus,etc.
thanks again.
thanks again.
I was B type and have been progressively moving towards A pattern for a while, so I would say that usually A results should be better in long term run.
As straight calculations don`t show all details, A model has less excitement, but higher level of self confidence.
Agree that it depends on personality, so there is no simple rule.
GA,
I'm not sure I have anything relevant to add to the above since I've been progressively moving towards a "third way" (or at least trying to). By that I mean I've been attempting to de-emphasize directional or even long volatility strategies, and been focusing almost solely on selling theta. While others may disagree with me, despite the leverage they provide, I'm just not sure options are the best vehicle for making directional bets, whether through scalping or position trades. In my mind, having to overcome the wide bid/ask spreads, relatively high commissions, time decay and fractional deltas makes an already tough task even tougher. It may also be, however, that because accurately picking direction consistently is just not one of my strengths, those with more talent at it could have more success using options in that way.
As far as long vol plays, my disinclination to do them stems entirely from my own lack of success being long vega in the past, though it is certainly a statistically valid approach under the right circumstances. Rather, I've come to focus on using another of the unique aspects of options -- the fact that they are a wasting asset -- by selling theta in a hedged manner, while generally being agnostic in terms of directional movement. Doing so suits my trading personality, helps me avoid some of my more glaring weaknesses, and allows me to be wrong and still profit. Most directional or long vol strategies just don't seem to provide the same kind of margin for error that I like to build into my trades.
Regards,
HD
I'm not sure I have anything relevant to add to the above since I've been progressively moving towards a "third way" (or at least trying to). By that I mean I've been attempting to de-emphasize directional or even long volatility strategies, and been focusing almost solely on selling theta. While others may disagree with me, despite the leverage they provide, I'm just not sure options are the best vehicle for making directional bets, whether through scalping or position trades. In my mind, having to overcome the wide bid/ask spreads, relatively high commissions, time decay and fractional deltas makes an already tough task even tougher. It may also be, however, that because accurately picking direction consistently is just not one of my strengths, those with more talent at it could have more success using options in that way.
As far as long vol plays, my disinclination to do them stems entirely from my own lack of success being long vega in the past, though it is certainly a statistically valid approach under the right circumstances. Rather, I've come to focus on using another of the unique aspects of options -- the fact that they are a wasting asset -- by selling theta in a hedged manner, while generally being agnostic in terms of directional movement. Doing so suits my trading personality, helps me avoid some of my more glaring weaknesses, and allows me to be wrong and still profit. Most directional or long vol strategies just don't seem to provide the same kind of margin for error that I like to build into my trades.
Regards,
HD
Trade Secretsâ class is better than Optionetics according to one of my trading friends since she took both of them.
http://www.tsfn.com/WorkShopFAQ.asp
http://www.tsfn.com/WorkShopFAQ.asp
after mastering the basics, the best option book on earth is "woulda, coulda, shoulda" by charles cottle. an added bonus is the book is FREE for the asking when you open an account at www.thinkorswim.com . atleast it use to be 
not sure about now. it is ALL you need.period.
best,
surfer
not sure about now. it is ALL you need.period.best,
surfer