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the truth about options ...
- Thread starter FeenixRizin
- Start date
Quote from FeenixRizin:
agreed. options allow you to decide exactly how much you're willing to lose.
altough, so do stocks, provided you don't hold overnight
i didnt mean that options allow you to decide exactly how much you're willing to lose. I meant that you can actually deploy some type of strategy. outrights are just up or down
I've always been successful with options, I find swinging options probably the safest way to trade. You don't need a stop loss, you risk is automatically built in, and you don't need much capital.
Sounds like the OP liked out of the money options, and those are the most difficult. Volatility alone will destroy those.
If you're a value investor and you have stock that you're planning to hold for a long time, then you can sell calls for some extra income. Add that to the dividend you collect from the stock and you can really hit some big home runs.
Sounds like the OP liked out of the money options, and those are the most difficult. Volatility alone will destroy those.
If you're a value investor and you have stock that you're planning to hold for a long time, then you can sell calls for some extra income. Add that to the dividend you collect from the stock and you can really hit some big home runs.
Quote from FeenixRizin:
my only point is this. If you are not hedging, or a trained professional, the only way to make money, overtime, using options, is by only swinging for he fences
If you can make money other than options, consistently, why are you trading options?
If you have not found your niche then maybe you'll find that at least with options you can stay in the game longer.
You don't have to be a 'trained professional'. You can be a self-educated professional too. No matter what you trade, you want to be a professional right? Just because options didn't work out for you doesn't mean they don't for other people. The fact is that people do make a living trading options and if those people could make more money trading something else I'm sure they would be doing that instead.
Quote from FeenixRizin:
i started actively trading in options ... bad move
made a few of those mythical 1500% returns... and lost 100% on more then enough trades to surpass them
my only point is this. If you are not hedging, or a trained professional, the only way to make money, overtime, using options, is by only swinging for he fences
Actually many option traders have come to the opposite conclusion -- the only way they can consistently make money is to do income trades that bring in maybe 5% a month. Calendar spreads, iron condors, and the like.
Quote from rew:
Actually many option traders have come to the opposite conclusion -- the only way they can consistently make money is to do income trades that bring in maybe 5% a month. Calendar spreads, iron condors, and the like.
do you mean selling them or buying them?
I would say that there is no easy way at all with options. Just like there is no easy way with stocks.
Options Pricing (aka pricing of a wasting "asset"), by default overprice (even when volatility is medium/low) most options, so it is very dumb to buy them outright (this includes leaps), you are a semi-sucker even to buy directional spreads....so what does this tell the retail trader? Stay the fuck away from these....
Quote from FeenixRizin:
there are far more ways built in for you to lose than win...
Unless you are a Jet fighter pilot, or have the most modest amount of patience, you will lose.
My advice to all the options-millionaire want-to-bees, look for a few 20-1 odds a year, and be prepared to lose it all.
Quote from loza:
Options Pricing (aka pricing of a wasting "asset"), by default overprice (even when volatility is medium/low) most options, so it is very dumb to buy them outright (this includes leaps), you are a semi-sucker even to buy directional spreads....so what does this tell the retail trader? Stay the fuck away from these....
Ha. Are you serious?