What do option traders see?

[ironchef]

Most options traders see red, in my experience.

Because very few understands convexity.

 

[traider]

The options trades I do put on are generally profitable. I enjoy it, though these days I am mostly trading futures spreads. I prefer their tax advantaged nature. Perhaps I should look into futures options when I can afford them. The taxes on equity anything are so high its not even worth it to me.

ES NQ spreads are very difficult to trade based on my backtests unless you do special adjustments. How did you manage it?

 

[Tony Optionaro]

In the spirit of r/wallstreetbets, nothing says sweet tendies like zero day OTM call options

Yeah, nothing like a good ol’ gamma rape and a margin call before weekend.

 

[gaussian]

ES NQ spreads are very difficult to trade based on my backtests unless you do special adjustments. How did you manage it?

I don't trade near months, and I don't spread indices. That's how .

 

[tsfx]

The options trades I do put on are generally profitable. I enjoy it, though these days I am mostly trading futures spreads. I prefer their tax advantaged nature. Perhaps I should look into futures options when I can afford them. The taxes on equity anything are so high its not even worth it to me.

What futures spreads are you trading ? Commodities ?

 

[traider]

I don't trade near months, and I don't spread indices. That's how .

What do you use for backtesting?

 

[tommcginnis]

Usually, we think of volatility in endogenous terms -- economic potentialities that affect market values. But for 2020, the Real World comes sliding in -- riding the U.S. election cycle with events that (for good or ill) are spun as directly relevant, if not exactly "economic" -- the exogenous events. So, "from within" is our usual view, and "from without" is then Black Swan stuff.

Well, "exogenous," Black Swan, Real World -- whatevs -- Calendar 2020 will be full of all of it:
• Endogenous *economy* stuff? Generally calm, cool, steadily growing.
• Exogenous *non*economy* stuff? Whackadoodle: head-scratching eye-popping vol-popping.

My opinion only. YMMV. That's what makes a market, after all.