Should i look in to options instead of stocks?

McTrading said:
I have developed a stock trading strategy (short term, from at least 24 hours up to a max a few weeks) that gives me on average a 1:1,4 risk reward, win rate of around 65% with a very good expectancy.
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:thumbsup::thumbsup::thumbsup:

If this is true, you can make a lot of money trading options.
 
McTrading said:
The strategy manages to predict if the market goes up from the next day or maximum in a week or 2
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mr mctrading
every option trader on this site knows more about options than me.

that being said, ask a couple better ways to get initiated into the options end of things, i'm sure they exist, but time's a wasting and what you will learn giving this a shot, you'll need to know anyway, so rock-n-roll and if you care, you should put out a call for other launch pad ideas in the mean time.

if you could have three plans of action to review and select from, that wouldn't hurt.

Here's one:

its been 8-10 years but off the top of my head late at night,

take one of your stock trade entry signal triggers, enter the stock trade as you normally would.
then for comparison purposes go to the option chains tab of your system,
check what happens to the 40 - 50% delta for the month out for simple buy of call or buy of put if it's a short.
track what the prices are at time of paper entry for the option contract of choice.
when you close out the stock trade, 'close out' the paper option trade too. compare yields.


after a few of these, you'll learn how to navigate this crap quickly enough to get the wheels in motion if it looks reasonable, if not you'll spot what you want to be diffo, and can go from there.
we don't know enough about your situation to recommend what to decide, but sometimes the best way to iron a sheet is to just set the iron down and work out from there.
this is blood simple, and not tedious after a couple of dry runs.
if you like, and place a couple of these for real, you'll get to experience the joys of dealing with those generous individuals on the other end of your option trade trying to give you the price you want.
seems that i saw on this site a post about the ability to review Past option chains.
don't know if that would actually be easier or not for something as simple as this.

have a trading plan in writing.

here's to getting decided before Thanksgiving.
that'll give you 4 weeks to hit up your lucky soon to be richer family for some seed money to start the new year with.
cheers
 
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it is indeed possible to profitably trade options directionally in place of positions in shares. options are far superior to stocks in numerous aspects so this is a very rewarding investigation to undertake. i have had a number of profitable strategies for a a couple of years and i have spent some months figuring out how to trade them in positions in options instead of shares but it has cost me real money because i have been reckless and impatient. i commend you for having the discipline to evaluate your systems thoroughly in simulator before ever committing real money to trading them.


as i stated initially, it is possible to profitably trade options directionally. this is a fact for some symbols that i screen for a number of positive attributes, i wouldn't be so sure about the ones you have listed. also, this is true for some contracts as strike prices - moneyness - intrinsic value and days to expiration are crucial to profitably trade options directionally. i have shared some posts about my systems, so i recommend that you take the time to read them.
 
rtw said:
take the time to read them
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mr rtw

quite interested in reading the posts you have shared about your systems, as referenced in the post above.
unfortunately, not aware of any effective way to find these posts.
1) would a search mechanism exist within elitetrader that would hasten this procedure?
2) would you be willing to direct the reader to any examples of your pertinent posts please?

'intrinsic value and days to expiration
are crucial to profitably trade options directionally.
i have shared some posts about my systems,
so i recommend that you take the time to read them.'
 
easymon1 said:
mr rtw
...

2) would you be willing to direct the reader to any examples of your pertinent posts please?....,,

.'
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I bet you will get nil by way of a useful/informative response.... but I shall remain hopeful I am wrong on this ...,
 
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