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options . . . very hard to make money
- Thread starter billyjoerob
- Start date
I've been with optionsmart since January 2010.
They seemed alright and looking at their track record I made the biggest mistake in my life by joining their QQQQ Enhance portfolio.
I never recommend such careless scammy service like Optionsmart to any one. Be away from these guys !
Firstly, their risk/reward ratio is too high and if you factor in the commission paid for the spread you are left with nothing really !
Secondly, These guys are careless, they never answer any of my emails. And more importantly, they never follow the trades they initiated as they busy with other services. They are willing to roll the position twice ( costing so much money) and endup with a MASSIVE LOSSES !
They have no trading disciplines what so ever !
Thirdly, the Track record posted in their website is full of rubbish and misleading. The losses they showing is much much higher than what they are claiming !
I certainly not recommend them to any one as these guys careless, ignorant, misleasing and deceiving !
STAY AWAY
They seemed alright and looking at their track record I made the biggest mistake in my life by joining their QQQQ Enhance portfolio.
I never recommend such careless scammy service like Optionsmart to any one. Be away from these guys !
Firstly, their risk/reward ratio is too high and if you factor in the commission paid for the spread you are left with nothing really !
Secondly, These guys are careless, they never answer any of my emails. And more importantly, they never follow the trades they initiated as they busy with other services. They are willing to roll the position twice ( costing so much money) and endup with a MASSIVE LOSSES !
They have no trading disciplines what so ever !
Thirdly, the Track record posted in their website is full of rubbish and misleading. The losses they showing is much much higher than what they are claiming !
I certainly not recommend them to any one as these guys careless, ignorant, misleasing and deceiving !
STAY AWAY
If a trader buys high delta options with at least 3 months to expiry, then why is it so much difficult to make a profit with options than stocks? Only major disadvantage I can see is bid/ask spread, but as long as the trades have a descent forecasted move then that shouldn't be a huge problem, and the benefits outweigh the disadvantages. Shouldn't more stock guys be trading DITM calls/puts as an alternative to stock especially on the higher priced stocks. I'm prolly missing something huge here...
Quote from mayhem28:
If a trader buys high delta options with at least 3 months to expiry, then why is it so much difficult to make a profit with options than stocks? Only major disadvantage I can see is bid/ask spread, but as long as the trades have a descent forecasted move then that shouldn't be a huge problem, and the benefits outweigh the disadvantages. Shouldn't more stock guys be trading DITM calls/puts as an alternative to stock especially on the higher priced stocks. I'm prolly missing something huge here...
I certainly think that pure stock investors could benefit from using DITM Calls as a proxy for stock ownership and control the same amount of shares for way less cash using LEAPS (not available on all stocks) or as far out as they can go. However the profitability has nothing to do with the options as they still need to pick stocks accurately over the long term. The options are just giving them a way to trade their decisions with less cash and risk for the same shares.
However this benefit also lets them diversify into more issues for the same cash stake and also have more choices for investment. Not necessarily an "edge" per se but a great example of options can be used to enhance an existing investment strategy.
Any of you wise guys have any positive results trading the weekly options ? Iam a newbie in this.
Buy the next month (say OCT) and short the weekly options. (try to roll over short in to the next week on last day)
Weekly has high gamma,delta and higher volatality too. Only theta burn is high for the weekly.
Buy the next month (say OCT) and short the weekly options. (try to roll over short in to the next week on last day)
Weekly has high gamma,delta and higher volatality too. Only theta burn is high for the weekly.
Quote from keviniyengar:
Any of you wise guys have any positive results trading the weekly options ? Iam a newbie in this.
Buy the next month (say OCT) and short the weekly options. (try to roll over short in to the next week on last day)
Weekly has high gamma,delta and higher volatality too. Only theta burn is high for the weekly.
Wow, rly? rly?!
Quote from ramaTrade:
As Henry Ford said, if you think you can do it or if you think you cannot do it, you are both right.
Also no one can win every trade anyway.
Perhaps you think you can run a three minute mile. Too bad. You still can't. I'm all in favor of people testing their limits, both physically and mentally, but if you don't think you have limits, you haven't tried anything very hard.
Quote from atticus:
Wow, rly? rly?!
Hi Atticus -I know you a lot more about options.
Here is what happened in the last 2 days experiment!!Real money trades.Not paper trades as Iam trying to find the Holy Grail paying $ $ tution.Option Market maker and broker laughing all the way to the bank.
Trade 1. 22nd Sep:
Bought SPY OCT 113 call @ 2.91 --Sold SEP24 OCT 113 call @1.55
Market got sold hard.Took a risk ,opened the lock and rode the Long.
Buy back Sold Sep113 call @0.99; Sold Oct 113 call @ 2.62
Little profit and that too because of risky action.
Trade 2.22rd Sep:
Bought SPY OCT 114 put @2.18--Sell SEP24 114 put @0.79
still holding.Today when the market popped,should have opened the short and rode the other.but I did not.
Today close -SPY@112.40
OCT114Put Bid/ask-2.95/2.98---- SEP 114 put bid/ask -1.53/1.57
Trade 3.23rd Sep:
Buy SPY OCT 113 call @2.12---Sell Sep24 113 call @0.49
If SPY does not close above @ 113 by 3.45pm tomorrow-short sep113 call will expire or if it goes to below 0.10 ,will buy it back
and sell Sep 30 113 call (today close bid/ask 0.98/1.02) against my OCT 113 call.
Weekly has higher volatality,much higher delta, still higher Gamma.
Only high theta decay helps if the underlying close below strike.
Since I dont want to hold the weekly overnight-I might experiment the opposite way- Buy weekly and sell the next month.
can we cover commision and make atleast $100-150 for 10 contracts with out directional risk?
I trade thro Ameritrade Quote tracker charts.Even though I have TOS ,have not used them properly. My strategy looks wrong. Can you put my trades thro your magic TOS mirror and see the future please! (Me standing soon at gates of the Soup kitchen?)
No credit spreads .Only debit.
Calendar works only if the underlying closes around the short strike.not far away-that much learned now.
regards
kevin
Aside from being an a--hole; I did have a point, being that the natural trade will be the long calendar, so the things are going to be priced thin on gamma. I personally haven't found a lot of opportunities in the weeklies, but I haven't devoted much time to it.
If the vol-lines are flat there won't be much opportunity, unless you're very good on direction. If so, you'll clean up on weeklies, monthlies, LEAPS.
If the vol-lines are flat there won't be much opportunity, unless you're very good on direction. If so, you'll clean up on weeklies, monthlies, LEAPS.