So it finally happened.

spindr0 · Nov 16, 2009

Quote from LTD4U:

Why, according to your valuable experience, did you choose to trade the underlying? Wasnât professional option trading successful? thanks

Tho your question was not addressed to me, other than earnings plays, for the most part I trade underlyings rather than the options because there's less to fight. No IV, no delta, narrower spreads, more liquidity, less hanky panky. What you see is what you get.

hajimow · Nov 16, 2009

Two points. Actually the first one is a question. First the question:
Do the computers in your dept working? I guess everyone is complaining. Printers are not working, lots of crashes ,....

Now the second part: You made profit for 11 months and you lost 19% on paper (so far) and you are crying? I believe you have become greedy and can not accept loss but you don't want to reduce the risk. If you are profitable YTD, then keep doing the same crap. I do the same. I have made over 330% this year. Just take some money off the table when you make money.

OldTrader · Nov 16, 2009

Quote from spindr0:

Tho your question was not addressed to me, other than earnings plays, for the most part I trade underlyings rather than the options because there's less to fight. No IV, no delta, narrower spreads, more liquidity, less hanky panky. What you see is what you get.

Exactly.

OldTrader

lindq · Nov 16, 2009

Quote from OldTrader:

Exactly.

OldTrader

In my experience, any directional bet is hampered by an option position, not helped by it. A trade in the underlying is much, much more efficient.

Over the years the profits I've made going long or short options would have paid off much better in taking a position in the underlying, and using intelligent management of the position.

erol · Nov 16, 2009

what about a vertical spread that matches the delta of the underlying position?

fbirdien · Nov 16, 2009

Quote from TraderSU:

I think DIA is the underlying. LoL, stop guessing and wait for OP to respond.

DIA was one of the positions.. but the one that caused shit to hit fan was SPY

fbirdien · Nov 16, 2009

Quote from hajimow:

First the question:
Do the computers in your dept working? I guess everyone is complaining. Printers are not working, lots of crashes ,....

Haha ..all the computers in my dept are displaying option chains.. everyone is complaining that they are getting assignment notice from OCC ..printers are printing crazy greeks

Now the second part: You made profit for 11 months and you lost 19% on paper (so far) and you are crying? I believe you have become greedy and can not accept loss but you don't want to reduce the risk. If you are profitable YTD, then keep doing the same crap. I do the same. I have made over 330% this year. Just take some money off the table when you make money.

good advise though.. will incorporate in the master template

fbirdien · Nov 16, 2009

spindr0 has made a good point in another post -

2) The best time to put a neutral position on is when the underlying is "neutralling". In strong trending markets you want to be more directional.

Makes sense ..this is something that was not done this month....but it was followed during the previous winning months

Tom1am · Nov 17, 2009

Quote from lindq:

Over the years the profits I've made going long or short options would have paid off much better in taking a position in the underlying, and using intelligent management of the position.

I am finding that out. Although working with options has made me a much better trader.

traderlux · Nov 19, 2009

CHECK THIS OUT.

Quote from mike007:

calendar spreads(doubles)