Options: advantages/disadvantages?

But if they were short CALLS going into a crash, how did they get hurt ?????????:p

Just kidding,

Vega:D

RULE 1 for a option newbies ---

When hedged, a call is a put, and a put is a call.
 
To tell you the truth, never been short calls into a crash.........but i think ur ET call name has something to do with what could break me. LOL, if a crash did come while short a lot of calls.

But i trade both sides of the market, i trade non-directional and directional and i also hedge, and i do limit my risk when i hold positions longer than a day........

So far so good....maby someday i will get into Vega and its trading but for now, im trying to handel what simple shit i do. lOL
 
Quote from Maverick74:

You know what easyrider, it's funny, I think the opposite. I think options are easier to trade then stocks or futures and I have traded all three. At least on a short term time horizon either intra-day or three to five days.

The Options are not that hard to learn. There really are only a handful of good books that you have to read versus the thousands or so books on index and equity trading. Also, with options, they are very straightforward. Once you understand them, the rest is up to you. However with equities and indexes, my god, there are a million ways to trade and no straight answers. If you kept reading one trading book after the other you could literally change your trading style every day for 10 years and never trade the same way more then once. Pretty amazing if you think about it.

!
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Interesting perspective. Thanks. Do you hold mainly intraday, or a few days?
 
Quote from roberk:

Interesting perspective. Thanks. Do you hold mainly intraday, or a few days?
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I trade expiration to expiration. So anywhere from three to six weeks.
 
Quote from vega:

But if they were short CALLS going into a crash, how did they get hurt ?????????:p

Just kidding,

Vega:D

RULE 1 for a option newbies ---

When hedged, a call is a put, and a put is a call.
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Yeah, imagine that!:D

riskarb
 
Roberk;
Will answer a few with your numbers with the letter ''a'' for answers

Quote from roberk:

Lindq . ertrader, riskarb, maverick, omcate and all,
I am considering all your advice and comments. The disagreements are where the cutting edge is, and I won't find that on a site promoting options.

Lindq , I think you might have succeeded in calming my urges, or at least ensuring I enter in an incremental way.
So far the problems I see:
1.complex
1a. Yes even in its simplest forms options are more complex; and the more math required the more chance for errors.

2. probably need more software (I have tons already)
2a.Maybe, but thats a personality call; tek wise dont need any more.

3. more study
3a. Right on more study is 100% right ; but true in any market.

4. premium is a problem if I am buying. NOt clear though- is it an advantage if I am selling??
5. Encourage a gambling streak. But more than futures??

6. Illiquidity means it is harder to close a position than with equities or futures. How bad is this?
6a.Stock option indexes are reasonable liquid, especially those Realtors call multiple listed on CBOE,ISE, PCX, AMEX?,Philadelphia exchange.
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Linq mentioned consistancy & satisfaction trading the underlying.

Unfortunately NO stock options are as liquid as equivelent stocks;
fortunately its easy to get out at market, or reasonable limit order, especially market order.
Harder to get in options than out.

Anymore problems?
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:

7.Certainly can find satisfaction trading derivatives;
however not likely many could limit losses in % terms ;
of $ 1 million loss on 20 million in 2 years on IBM, long calls in a downtrend:cool:
:cool:
 
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