POLL: Your general approach

Cutten · May 4, 2004

I lean towards buying, I find the risk/reward is much better.

kowboy · May 4, 2004

Quote from candletrader:

Thanks, Moderator, for removing the various uncalled for posts of one of our immature members... much appreciated...

candletrader · May 5, 2004

Quote from Cutten:

I lean towards buying, I find the risk/reward is much better.

But do you find the expectancy is better (i.e. risk:reward ratio, once adjusted by probability)...

murray t turtle · May 7, 2004

Quote from Samson77:

The only way to make any consistent money from options IMO is to write em baby.

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Figure options, because of slippage,sellers edge, leverage & commissions;
tend to help produce a more sawtooth non smooth equity curve.

Many, but not all insurance companies make money investing & selling;

however prefer
occasional derivative buying
but cant think of a worse market than options to hypertrade for an average trader.

Cutten · May 7, 2004

Quote from candletrader:

But do you find the expectancy is better (i.e. risk:reward ratio, once adjusted by probability)...

Yes, much better, especially when you take into account the low requirement for capital.

vikana · May 7, 2004

I don't like to play insurance company, so I only buy options.

candletrader · May 8, 2004

Quote from Cutten:

Yes, much better, especially when you take into account the low requirement for capital.

I suppose it boils down to personal psychology...

Net seller: Low expectancy per trade but high probability of a win

VERSUS

Net buyer: Low probability of a win, but the occasional massive home run...

Achiever · May 8, 2004

Options? I don't trade 'em. Not enough leverage for me.