Trading philosophy: Options are just different, Why?

[darwin666]

Quote from mike007:

I look at trading options this way. Options are like insurance policies. You can either be the person buying the insurance, or your can be the insurance company selling the options. I prefer to be the insurance company in this case.

ha ha. mike.. on the dot..

not only do I/we prefer to be the insurance company, we only sell policies to folks who we know with high probability are not going to crash on us.... and even if they do , we roll the payout to next month to see if they re crash on us....

 

[mike007]

Quote from darwin666:

ha ha. mike.. on the dot..

not only do I/we prefer to be the insurance company, we only sell policies to folks who we know with high probability are not going to crash on us.... and even if they do , we roll the payout to next month to see if they re crash on us....

Yep that is the way to do it. those less than 10 deltas are pretty safe drivers

 

[spindr0]

Quote from xflat2186:

When you take your options skills to a higher level more often then not you wont be trading direction or trying to time the markets from a directional standpoint

And I'd add that if you're going to trade, use the less than 100 delta options to hedge and trade the 100 delta underlying.