options trading volume sets new record (again)

[lindq]

Quote from matt122333:

What do you currently practice the most when trading options?

Abstinence

(And as a new options trader, you don't have any business selling puts. One of the few strategies that can really knock you out of the game. If you feel you must, then trade very small and fully calculate your risk. You've been collecting premium during a major bull market. But when the market changes...which it will...those positions can really bite you.)

 

[matt122333]

Quote from lindq:

Abstinence

(And as a new options trader, you don't have any business selling puts. One of the few strategies that can really knock you out of the game. If you feel you must, then trade very small and fully calculate your risk. You've been collecting premium during a major bull market. But when the market changes...which it will...those positions can really bite you.)

Thanks for the advice. Definitely something to adhere to.

 

[lindq]

Quote from matt122333:

Thanks for the advice. Definitely something to adhere to.

Thanks for saying thanks. So seldom heard in these parts.

 

[rew]

Quote from matt122333:

I've been trading options for about 2 months now. I still have a lot to learn but I find writing naked puts is a nice way to generate income. I'm looking forward to learning some different ways to better invest using options in addition to writing naked puts.

Just keep in mind that we've been in a bull market for over 3 months. When the inevitable bear market comes you'll find yourself owning some of those stocks you're writing puts on. Make sure you'll be happy with that (and that you have the cash to buy).

 

[rew]

Quote from cvds16:

I haven't traded options directionally for like a decade, traded vol afterwards till 2006 in semi-off floor market making. Nowadays it's only FX for me ...

To each his own. I could never do anything but lose money on FX.

 

[cvds16]

it took me like 3 years to get somewhat consistant at this. I only recently started expandig it a bit ...

 

[EMRGLOBAL]

naked puts ?


You'r a new trader in Derivatives and your writing naked PUTS!

Holy shit son. You better read Sheldon Natenbergs(Sp)"Option voaltility & pricing" .

 

[EPrado]

Quote from EMRGLOBAL:

naked puts ?


You'r a new trader in Derivatives and your writing naked PUTS!

Holy shit son. You better read Sheldon Natenbergs(Sp)"Option voaltility & pricing" .

He's just following the likes of Victor Neiderhoffer. Hopefully he doesn't blow out (twice) like good ol Vic.