Premiums eating away profits

Sig said:
In fact that's exactly how supply and demand works. Statistically you should expect your options trades to average at just below break even when taking into account trading costs and bid/ask spreads. That's efficient markets for you.
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If the realty is none of us will be profitable in the long run, why do it? There is no pot of gold at the end of the rainbow.:(

But of course none of us believe that or we won't be trading.:finger::D
 
dugan176 said:
Well I'm a beginner trader and curious to know if that played a separate part in losing money in options ...
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The issue is that the underlying is not under-performing or over-performing what the ATM strangle/straddle premium indicate. All that greek gobbly goop is factored in to the premiums.



:)
 
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