This cant be right, right?

[MrScalper]

The OP specifically asked about what appeared to be a risk free opportunity that he suspected was too good to be true. Several posters provided very good, on-point answers to that very specific question. You provided an generic response about what newbie option traders should do. Then end your post with "The worst thing..or the biggest mistake you might make..is listening to idiots talk about things that do not matter one little bit in relation to what you are trying to achieve!" I guess my question is who the idiot is in this situation given your criteria for idiots?

Well..it is very obvious to some of us who the real idiots are..and they tend to stick together likes flies stick to shit on a blanket

 

[MrScalper]

Mr scalper sounds like a wanna-be guru whos products noone buys

 

[ProStrats]

There isn't edge by trying to arb those spreads. Think about it, would all of these Wharton/Harvard grads give up premium anywhere? Especially in US markets.
There is an edge in trading these, but I can almost guarantee you won't find it online.

You said not in US equity markets. does that mean there are other option exchanges in foreign countries that may have dumb market makers? Also as I understand it legging in would not be risk less because you would still have that directional risk until you 'lock it in'.

 

[ironchef]

You can take options trading to many levels..how far you go will be determined by how much you learn..and how good you become at learning from your mistakes.

First step..for newbies..is.. identify a range..wait for the breakout..or near the breakout..and have your strategy picked and setup before you decide to trade the breakout..if you don't know what strategy is best to use..then I suggest you start reading up on some relevant options books..for..all the info you will ever need is but a click away..but you must be prepared to keep searching until you find the good material!

The worst thing..or the biggest mistake you might make..is listening to idiots talk about things that do not matter one little bit in relation to what you are trying to achieve!

The OP specifically asked about what appeared to be a risk free opportunity that he suspected was too good to be true. Several posters provided very good, on-point answers to that very specific question. You provided an generic response about what newbie option traders should do. Then end your post with "The worst thing..or the biggest mistake you might make..is listening to idiots talk about things that do not matter one little bit in relation to what you are trying to achieve!" I guess my question is who the idiot is in this situation given your criteria for idiots?

I respect both of you and learned a lot from you.

There are two types of advice, one is not specific but based on general principles and philosophy the other is more specific and to the point. To be a good trader, I need both types of help. Besides, I do not expect anyone here would reveal their specific trading methods.

I used to get real frustrated when everyone here said risk management was key to be a good trader but few provided any specifics. I had to finally figure it out myself (started with Kelly). But without someone like MrScalper, Handle123 among others convinced me I needed to develop risk management, I would still be in a very high risk situation and not know it.

Best to both of you.

 

[JackRab]

You said not in US equity markets. does that mean there are other option exchanges in foreign countries that may have dumb market makers? Also as I understand it legging in would not be risk less because you would still have that directional risk until you 'lock it in'.

Since TH stopped there has been an increase in avg MM-IQ

 

[MrScalper]

I respect both of you and learned a lot from you.

There are two types of advice, one is not specific but based on general principles and philosophy the other is more specific and to the point. To be a good trader, I need both types of help. Besides, I do not expect anyone here would reveal their specific trading methods.

I used to get real frustrated when everyone here said risk management was key to be a good trader but few provided any specifics. I had to finally figure it out myself (started with Kelly). But without someone like MrScalper, Handle123 among others convinced me I needed to develop risk management, I would still be in a very high risk situation and not know it.

Best to both of you.

Revealing ones trading methods does not really matter..as..most lack the common sense to understand that proper risk management is the main reason why a trader can achieve consistent profits.. perfecting ones timing of entries and exits is what makes the difference between average and exceptional returns

Of course GILD can go to $100..but it can also go to $50 if you decide to hold out for $100

Bad habits are formed by bad actions..just keep remembering all the fools who lost fortunes post dot com bubble.. simply because the had formed a bad habit of holding on for more profit!

This bull market might continue for another month..3..6..12..18..nobody knows for sure..but..one thing is sure..when the market does fall..it always falls a lot faster than when it went up..need say no more!

The difference between professionalism and non professionalism with trading is the ability to understand and be able to deal effectively with any situation that arises..very few who try become real professionals..as it requires the same traits that make professional business men

It is very easy spot a real professional..and very hard to find one..most are just idiots who make themselves feel good by posting idiotic things on the internet..that have absolutely nothing to do with professional trading or investing..social media monkeys

 

[misterkel]

when the market does fall..it always falls a lot faster than when it went up..need say no more!

Ever heard of a short squeeze?

 

[MrScalper]

Ever heard of a short squeeze?

Yes..but it depends on what you are trading.. sometimes when the market falls hard certain stocks will be bought up..the good old reliables

"there can be more value in the blink of an eye, than in months of rational analysis"

Especially true for trading !

 

[ironchef]

Of course GILD can go to $100..but it can also go to $50 if you decide to hold out for $100

The difference between professionalism and non professionalism with trading is the ability to understand and be able to deal effectively with any situation that arises..very few who try become real professionals..as it requires the same traits that make professional business men

I think GILD will have a higher probability of going to $100 than to $50 so I am staying put.

I am no professional and will never try or pretend to be one. As a small mom and pop trader eking out some profits I try very hard to avoid being stomped by the big boys and carefully choose playing fields too small to be worthwhile for them (you).

Best wishes.