This site helped me

[shMark]

I learned something valuable at this site. It is how hard options are to succeed at. What particularly hit me was the statement that 90% of retail traders lose money in options. Someone on another site warned me also.

I think I do have some advantages over the average person. While I don’t consider myself particularly intelligent, I do love to learn. I am taking my 4th math class for fun, even though I have a full time job. I will approach options the same way. Reading many books on them. Also, I have 27 years in the stock market, and I think that I have beaten it by 1.5% per year, although I can’t be sure because money is taken out and put in, so good records are hard to keep.

Based on what I have heard, I am going to take it slow. Do a lot of paper trading in thinkorswim, and only allocate a small amount to options once I feel I have mastered them.

So this site was helpful to me.

 

[newwurldmn]

Trading options is about how you look at them. If you look at them wrong, you will likely lose.
If you look at them "right" you will likely find ways to make money.

At the end of the day you have to have a view on direction or vol and then find the option structure that best expresses that view.

 

[p0box4]

What particularly hit me was the statement that 90% of retail traders lose money.

This applies to all financial markets, not just options.

 

[shMark]

This applies to all financial markets, not just options.

But doesn't the stock market go up naturally over time, while for everyone who wins with options, someone else loses. If you trail the s and p, by 2% a year, maybe in a way you lost, but you still made 8% a year.

 

[wxytrader]

What particularly hit me was the statement that 90% of retail traders lose money in options.

Thats because retail try to profit buying calls and puts. It's unsustainable because you have slippage, premium ,fees and time decay working against you every trade. The 10% that are successful (wherever that number comes from) don't do it buying options. Buying options is for protection not for profits.

(0-3 DTE not included)

 

[shMark]

Thats because retail try to profit buying calls and puts. It's unsustainable because you have slippage, premium ,fees and time decay working against you every trade. The 10% that are successful (wherever that number comes from) don't do it buying options. Buying options is for protection not for profits.

(0-3 DTE not included)

What percent of option sellers make money do you think? I think people who intelligently buy DITM calls on good stocks do ok.

 

[ironchef]

I learned something valuable at this site. It is how hard options are to succeed at. What particularly hit me was the statement that 90% of retail traders lose money in options. Someone on another site warned me also.

I think I do have some advantages over the average person. While I don’t consider myself particularly intelligent, I do love to learn. I am taking my 4th math class for fun, even though I have a full time job. I will approach options the same way. Reading many books on them. Also, I have 27 years in the stock market, and I think that I have beaten it by 1.5% per year, although I can’t be sure because money is taken out and put in, so good records are hard to keep.

Based on what I have heard, I am going to take it slow. Do a lot of paper trading in thinkorswim, and only allocate a small amount to options once I feel I have mastered them.

So this site was helpful to me.

This is your golden ticket to be the 10% if you truly understand what he said. Read and think about what he said very carefully:

Trading options is about how you look at them. If you look at them wrong, you will likely lose.
If you look at them "right" you will likely find ways to make money.

At the end of the day you have to have a view on direction or vol and then find the option structure that best expresses that view.

 

[shMark]

This is your golden ticket to be the 10% if you truly understand what he said. Read and think about what he said very carefully:

Thanks, I will.

 

[p0box4]

But doesn't the stock market go up naturally over time, while for everyone who wins with options, someone else loses. If you trail the s and p, by 2% a year, maybe in a way you lost, but you still made 8% a year.

True, but you are talking about traders, not investors.

Buying an index and holding it for many years or decades decades is almost a guaranteed way to make a return, but that's not trading, that's investing.

By the way, in futures for example the same principle applies, whatever you gain someone else must be losing.

 

[taowave]

If you are serious,take a look at Orats. ImHO,they have the best backtester on the market...

There is NO inherent edge to selling options over buying them.

Thanks, I will.