What are some Basic Strategies that have Worked for You?

[zghorner]

Can someone point me in the right direction of successful options trading? This is asked in terms of speculation and not so much as hedging tools. Im not asking for anyone's "holy grail" whatever that even is...more so just some basic ideas that you personally feel are the best way to go.

Do any of you just buy calls or puts thinking the underlying will increase/decrease? Or do most of you employ some type of risk defining strategy like spreads or straddles? How much time do you prefer to give yourself till expiration? What do you consider the best way to limit risk without choking profit potential to death?

I know these are some basic ass questions that you would think everyone who has ever traded options should know but I have to start back at the basics in hopes of going a different direction this time. I appreciate any advice, tips, study material, etc..

thanks

 

[tommcginnis]

• Know your (market's) risk graph/expectation
• Choose your strategy ("use of options") to match that expectation
• having planned your trade, then trade your plan.

https://www.elitetrader.com/et/threads/5-basics-of-options-in-5-minutes.330524/#post-4818371

That's it!

 

[murray t turtle]

• Know your (market's) risk graph/expectation
• Choose your strategy .......to match that expectation
• having planned your trade, then trade your plan.

https://www.elitetrader.com/et/threads/5-basics-of-options-in-5-minutes.330524/#post-4818371

That's it!

%%
Graph?? You mean chart??LOL That'$ what IBD calls charts. AS far as diravitives ....................................................................................................That's a whole 'nother book.I sold one of my option book$, but kept some. Besides the local paper weather forcast called for 25% chance of rain; Weather Channel[@ local bank] said 100% chance LOL.{IT's beginning to rain-again,LOL},

 

[zghorner]

• Know your (market's) risk graph/expectation
• Choose your strategy ("use of options") to match that expectation
• having planned your trade, then trade your plan.

https://www.elitetrader.com/et/threads/5-basics-of-options-in-5-minutes.330524/#post-4818371

That's it!

Thanks for the post. I read the article and the thread but hope that this thread can get more detailed than that. Less "what options are and how they work" and more "these strategies have worked best for me".

 

[tiddlywinks]

Graph?? You mean chart??

Pretty sure he meant GRAPH. Risk graphs are often used to determine potential payoffs, losses, and caps of a given options strategy. You do know murray, profitable option strategies can be more than a simple directional call or put, don't you? LOL

 

[taowave]

You realize one mans trash is another mans treasure.

What direction did you head in your first go round?

Directional. Vs Delta Hedging,short gamma vs long gamma??

Can you stomach theta working agsinst you??

Can you sleep being net short options??

Help us out

Can someone point me in the right direction of successful options trading? This is asked in terms of speculation and not so much as hedging tools. Im not asking for anyone's "holy grail" whatever that even is...more so just some basic ideas that you personally feel are the best way to go.

Do any of you just buy calls or puts thinking the underlying will increase/decrease? Or do most of you employ some type of risk defining strategy like spreads or straddles? How much time do you prefer to give yourself till expiration? What do you consider the best way to limit risk without choking profit potential to death?

I know these are some basic ass questions that you would think everyone who has ever traded options should know but I have to start back at the basics in hopes of going a different direction this time. I appreciate any advice, tips, study material, etc..

thanks

 

[murray t turtle]

Pretty sure he meant GRAPH. Risk graphs are often used to determine potential payoffs, losses, and caps of a given options strategy. You do know murray, profitable option strategies can be more than a simple directional call or put, don't you? LOL

%%
OK,
as far as dirivatives, no, 'cause i seldom do insurance co math .I do wish i had sold some oil options to Mr Hunt,[or bought them if my name was Hunt, of the silver buy family] in TX, even though they had a big legal mess........LOL Good reminder ;T-winks=my 6 mo insurance is due this month,.Actually i would prefer every month, on insurance but they widen the bid ask so much =almost like bid/ask on new GM or TSLA car =LOL=LOL

 

[athlonmank8]

 

[athlonmank8]

 

[murray t turtle]

View attachment 219213

%%
Practical plan, pray, miracles happen ;
+ pick up that $00.05 every one walks over=even though had to get get my can opener key chain to lever it up LOL.This comment refers to main street, not WallStreet. Some of my ETFs have a bigger bid/ask than $00.05; some do not.
I checked insider selling+ seldom pay much attention to that, Dave Ramsey doesnt like single stocks very much on ,MSFT;100% of them+ Mr Gates sell WAY to soon= but that's single stock$ for you..............................................................................................