where is the edge in options trading?

Quote from MTE:

The egde comes from your trading approach, i.e. your strategy, not from the instrument itself, although the type of instrument can play a important role in your trading edge.

If an instrument itself had an edge then everyone would trade it and the edge would disappear.
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How does one know, or can prove, when one has an edge?
db
 
Quote from MTE:

Consistently profitable trading record.
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I'm afraid that's what I thought. The question is in regards to 'consistently'. 'Consistently' for some is a few months, others a year, still others forever.
There appear to be plenty who are consistently profitable until they're not. I was consistently profitable last year, now I'm not. So maybe I had an edge and now I don't. Or maybe I was just lucky for the year and now I've run out of luck.
It appears to be related to time. How long a track record does one need to claim to have an edge?
As I said earlier, it's just philosophical musings with probably no practical implications, but I'm curious :) and the kind members of this forum always provide interesting feedback.
db
 
Quote from daddy'sboy:

I'm afraid that's what I thought. The question is in regards to 'consistently'. 'Consistently' for some is a few months, others a year, still others forever.
There appear to be plenty who are consistently profitable until they're not. I was consistently profitable last year, now I'm not. So maybe I had an edge and now I don't. Or maybe I was just lucky for the year and now I've run out of luck.
It appears to be related to time. How long a track record does one need to claim to have an edge?
As I said earlier, it's just philosophical musings with probably no practical implications, but I'm curious :) and the kind members of this forum always provide interesting feedback.
db
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I agree it's not an easy question to answer cause markets constantly change which means that things that worked last year may no longer work this year. I don't think there's a set period of time after which you can claim to have an edge. You maz be profitable for years, even decades and then stop being profitable. In any case, I think the key is to make as much money as possible during the time you have an edge/luck and then lose as little of that money as possible when you don't have an edge/luck.
 
It would seem to me that the "edge" is knowing when your current edge no longer works and it's time to find a new one. Ego will stand in your way. Hence, the only constant edge would be trading without ego...forever. Damn tough to pull off, especially when one has enjoyed some extended periods of profitable trading. The "Edge" is not in your technical system, or fundemantal methodology, it's in your psychology.
 
Quote from daddy'sboy:

Dear comrades
Where is the edge?
Can it be proven to exist?
How does it differ from consistent luck?
daddy's boy
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its called put-call parity
 
Quote from asap:

the retail traders have the edge of trading just when they want to whereas the market makers have to provide a bid and ask at all times. the ability of trading just when one feels to is a powerful edge. this is especially true with options because of their non linear nature.

the best proof this is true is by looking at the front month options chain of any hi volume underlying during the course of the day and understand the complex dynamics of price movement across the different call and put strikes.

consistent luck is a paradox. either is luck or consistency. the former is random, the latter isn't. can't have both in the long run.
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Can you give an example of a trade in a high volume underlying?
 
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