The #1 Skill In Selling Options

[newwurldmn]

Delta?? LOL Gamma determines how fast delta changes when shit hits the fan. Who the fuck cares about delta anymore?? Everything is dynamic! Whatever strikes that you used in your original option position according to delta all go out of the door!

Gamma is related to theta, of course when shit hits the fan. When there is no more volatility when determined by the "market", it's theta that calls the shot that kills the options price down to zero. Gamma is not related to theta anymore right? LOL I don't see no gamma offsetting when theta is ballooning? All I see is dealers hiding behind thetas to avoid paying up.

This exactly confirms what I am talking about and it's confirmed by academic research. Anyway I tried my best to expose it to retail traders so they know what they are getting into. The budget constraint that I described in my posts is very typical of a retail trader with families. If they are too poor to trade in options according to you, then I agree, they should stay away but that still doesn't negate what I observed how options markets work so regardless whether one wants to participate in options trading or not, they should be aware.

I stand by #2.

I would love to see that academic research.

 

[newwurldmn]

Thanks for you observation. I agree with you if you keep the same strike when you roll. However, if you roll down in strike, you are taking risk off the table and improving your P&L position.

Read an options book instead of listening to this bozo.

You reduce risk but don't necessarily improve your pnl position.

 

[SoyUnGanador]

Ron is still a contributor to CNBC and a couple of other financial shows. He had the good fortune to be at the CBOE on 10/19th. So an insider perspective for the market break. Worth buying?
Sure, but I'm partial. Spent the better part of that week with him.

Thanks ETJ! If you don't mind my asking, what were you doing with Ron for better part of a week? Good guy? Always seemed that way watching him!

 

[taowave]

wait...WUT????

You cant reduce risk and increase reward at the same time?? Theres a trade off????

Read an options book instead of listening to this bozo.

You reduce risk but don't necessarily improve your pnl position.

 

[Stratter]

The number one skill is knowing which options to sell....... why not stick to selling SPY puts long-term(having first checked the statistics and scale of operation of such a strategy of course). I forgot... we don't want to make money slowly, we want to make it big and fast.

 

[newwurldmn]

wait...WUT????

You cant reduce risk and increase reward at the same time?? Theres a trade off????

Well if you buy index options and sell a bunch of single stock options, it's free premium.

You can thank me now.

 

[newwurldmn]

The number one skill is knowing which options to sell....... why not stick to selling SPY puts long-term(having first checked the statistics and scale of operation of such a strategy of course). I forgot... we don't want to make money slowly, we want to make it big and fast.

The number one skill is knowing when to take your foot off the gas. Everyday you walk to the bank and withdraw money from the ATM. Except the day when there's a bunch of guys with ski masks on shooting hostages.

 

[TheDawn]

Read an options book instead of listening to this bozo.

You reduce risk but don't necessarily improve your pnl position.

How is what I said:

But how do you know the lower/higher strike won't become ITM or won't have the same chance or higher chance of becoming ITM? This is like adding to the losing position by averaging down/up.

being a bozo, you piece of shit??!!!

I exposed my observations regarding some inequitable payoffs in options and so far you haven't proved to me otherwise in any way, mathematically or empirically to counter what I wrote besides calling me names and accusing me of using drugs. I tried to remain civil but seriously some shitheads like you just don't deserve it.

 

[TheDawn]

The number one skill is knowing when to take your foot off the gas. Everyday you walk to the bank and withdraw money from the ATM. Except the day when there's a bunch of guys with ski masks on shooting hostages.

And how are people going to know that unless they have insider information?? And if they are trading index options, they won't even know that. And on those days that they encounter those "bandits in ski masks", they lose 10% of their trading capital and you think it's ok for a retail trader?

And using your analogy, the problem is during the days when it's you that's encountering the "bunch of guys with ski masks", you lose everything that you have earned in your bank account because the "bunch of guys with ski masks" force you to withdraw them all from the ATM. But then when you decide to don a ski mask to stand by the ATM machines, the bank tells you you can rob the ATM machines when the bank is closed and the doors to the ATM machines are locked.

I am sure your pea little brain didn't understand my analogy. But anyway don't give a shit. For people who are genuinely concerned about retail traders' welfare, they will know what I am talking about. Really done with you here.

 

[newwurldmn]

How is what I said:


being a bozo, you piece of shit??!!!

I exposed my observations regarding some inequitable payoffs in options and so far you haven't proved to me otherwise in any way, mathematically or empirically to counter what I wrote besides calling me names and accusing me of using drugs. I tried to remain civil but seriously some shitheads like you just don't deserve it.

You cited heretofore unnamed academic research.

I did. I said delta is a source of pnl that you are ignoring. You said "who gives a fuck about delta?" How do I respond to that?