TAPE READING (chat room cont.)

tape reading

  • go long at bid

    Votes: 19 20.9%
  • go long at offer

    Votes: 38 41.8%
  • place short at bid (bullet or conversion) reg sho.

    Votes: 17 18.7%
  • place short at offer

    Votes: 17 18.7%

  • Total voters
    91
  • Poll closed .
Thanks again, and this options strategy can be as rewarding as the tape reading you were doing?
You must do a lot of fundamental analysis now.
 
Quote from belavia:

Thanks again, and this options strategy can be as rewarding as the tape reading you were doing?
You must do a lot of fundamental analysis now.

Oh God no. No fundamental analysis. It's not a matter of options being rewarding. Making money in general is rewarding regardless of the strategy used or the product being traded.
 
Quote from Maverick74:

It's not that volatility is easier to trade (many think it is), it's just that it's more lucrative and has more defined risks.

So therefore if you are going to trade volatility, that would imply that you would be seeking out the most volatile instruments to trade. And stocks simply are not volatile enough.
I hope that answers your question.

Could you elaborate on what you consider a defined risk?

Doesn't volatility relate to more risk? Or do you mean that all you can lose is the cost of the option?
 
Quote from Boib:

Could you elaborate on what you consider a defined risk?

Doesn't volatility relate to more risk? Or do you mean that all you can lose is the cost of the option?

Option spreads have finite risk. Volatility has nothing to do with risk. It has to do with variance.
 
Quote from Maverick74:

So therefore if you are going to trade volatility, that would imply that you would be seeking out the most volatile instruments to trade. And stocks simply are not volatile enough.
I hope that answers your question.

lol, but mav, you trade equity and equity index options.
 
Quote from Maverick74:

Option spreads have finite risk. Volatility has nothing to do with risk. It has to do with variance.


Huh? Are you referring soley to options spreads?
 
Quote from riskarb:

What do you trade? Equity Index?

Jesus man, you have me on Yahoo instant messenger, chat me there. It's harder to chat real time on a message board. Christ. LOL.
 
Quote from Maverick74:

Jesus man, you have me on Yahoo, instant messenger, chat me there. It's harder to chat real time on a message board. Christ. LOL.

ANSWER THE DAMN QUESTION! lol, it's simply that you state equities don't have enough vol, but you trade NDX options.
 
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