The Most Important Lessons You Have Learned From Options

[tradingjournals]

The risk to the prop firm owner could be a big fat zero at worse.

 

[drownpruf]

Quote from tradingjournals:

The risk to the prop firm owner is a big fat zero.

Please stop. Your statement has been disproven countless times in the past with all the prop blow-ups related to capital and not regs. There is no risk to letting your K1 member use 15x-50x outright. Sure, tell us another fantasy.

Have you ever actually traded anything beyond box-tops?

 

[drownpruf]

Quote from tradingjournals:

The risk to the prop firm owner could be a big fat zero at worse.

Now you're editing to include, "could be." Is that a hedge?

 

[Martinghoul]

Quote from tradingjournals:
The risk to the prop firm owner could be a big fat zero at worse.

Like I said in my other post, it's only your ignorance (or worse) that makes you think these options are given for free.

 

[tradingjournals]

Some average readers do not seem to have the ability to understand the content of my first post. So another example is given below.

Quote from tradingjournals:

What are some of the most important lessons you have learned from options?

I have learned that there could be free options in the real world that should have a premium if they were traded in a market. I have even seen instances where an option is given for free to the other side, and the other side was thanked for the opportunity to have been given the free option.

http://elitetrader.com/vb/showthread.php?threadid=280230

Quote from tradingjournals:

A firm understands the difference between average price and marginal price, and knows that the average customer does not understand the difference between marginal price and average price. It highlight marginal prices because they attract customers looking for a deal, while it knows they would pay the average price and at "worse" (to the firm) the marginal price.

So the firm sees free options in the mind, psychology, ignorance of the people, and monetize those options. They are monetized via the printing of words.

 

[jimmyjazz]

I am so f'ing sick of the pseudo-English that is spoken on these boards. You people think that by being imprecise you give off the impression of being insightful.

In reality, you just give off the impression of being mentally ill. I'm talking about you, tj.

Just STOP. Either make money or don't. Stop clogging the airwaves with this bullshit.

 

[newwurldmn]

Quote from drownpruf:

Now you're editing to include, "could be." Is that a hedge?

He's taking a free put on his post

The only free option I ever heard of was the mutual fund timing guys. Talk about real edge.

I guess the premium for those guys was paid after the "options" expired.

 

[Martinghoul]

Hopeless...

What a textbook illustration of the Dunning-Kruger effect!

 

[zdreg]

Quote from tradingjournals:

Some average readers do not seem to have the ability to understand the content of my first post. So another example is given below.




http://elitetrader.com/vb/showthread.php?threadid=280230

by some statistical quirk there are no average readers on ET. there are the erudite at one end and the ignorant at the other end. there is nothing in between. those who don't understand you are erudite. those who understand you you are ignorant and have made the mistake of not applying to mcdonalds when jobs were available there.

 

[zdreg]

Quote from newwurldmn:

He's taking a free put on his post

The only free option I ever heard of was the mutual fund timing guys. Talk about real edge.

I guess the premium for those guys was paid after the "options" expired.

"The only free option I ever heard of was the mutual fund timing guys. Talk about real edge."

those were the good old days. most posters, because it is time past, are likely to be unfamiliar. why don't you describe the edge