Who is really making a living trading options??

Quote from MACD:

In today's really efficient markets there is no such thing as mispriced options. The options are all priced at the "correct" price based on implied volatility.



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All that means is that they are all RIGHT, or all WRONG at the same time

AMZN/NFLX were all wrong.
 
Quote from StarDust9182:

My advice for SLE is to stop trading options until you understand what two people tried to tell you. You are making it worse in my opinion.
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Are you fucking kidding. Have you read any of this guys posts/contributions..supposedly he ran/runs an options book for a fund/institution and you are schooling him? fucking elitetrader.com bro.
 
Quote from StarDust9182:

My advice for SLE is to stop trading options until you understand what two people tried to tell you. You are making it worse in my opinion.

Yes I go long and short, buy and sell using index options mostly. The op asked for the particular strategy that works. All of them work under the correct market conditions assuming you know what you are doing. All of them fail in other market conditions.

Options are a tool, like stocks, bonds, cash, futures etc. A tool is not an edge. Knowing how and when to use a tool is.

One fellow already gave you the answer you seek but it doesn't appear to have satisfied you.

Options trading is harder than say stocks because there more degrees of freedom. Those extra degrees of freedom allow many retail traders to blow their accounts out.

One "secret" is to buy at the right time and then to sell at the right time. Experience will eventually teach you the right time.
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Yeah, attempt to school the PhD who runs a structured products desk for a major bank. Yes son, that's elitetrader.com.
 
Quote from atticus:

Initial. Edge is proven in practice. Either you gain an edge on the vol-line or you sell index skew and hedge discretely. You will do better in options if you have an edge in price or volatility.

Path-(in)dependency is the hook. If you could accurately predict variance you would never be a net buyer of options (in $-terms).
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atticus, what do you mean sell index skew and hedge or how do you do this? Are you doing put front spreads, risk reversals (sell puts to finance calls) or what? Thanks.
 
Quote from StarDust9182:
My advice for SLE is to stop trading options until you understand what two people tried to tell you. You are making it worse in my opinion.
More...
Hahahaha, priceless... You got any more advice here, sire?
 
Wow, I have never seen someone on this board with so many disciples before.

My comment to SLE was only the first one and that was intended to save him from harm. If that is bad, then I am bad. So what?

The rest of the comment was to the op's question and not to SLE.

I don't know SLE and am only judging from what he said in his post. Maybe I am wrong, maybe I am right. Traders are wrong and right all the time. They make judgments all the time (not all traders, some trade using different premises of course).

I am not attacking the person, disciples, only the argument. After that, I am trying to answer the question. Are you?
 
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