Who is really making a living trading options??

[atticus]

Quote from StarDust9182:

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?

Your inference that he should stop trading options due to his level of sophistication is the only point we're making here. It was pretty comical.

 

[StarDust9182]

"Your inference that he should stop trading options due to his level of sophistication is the only point we're making here. It was pretty comical."

That inference assumption comes from your side. I didn't say anything about level of sophistication. I expressed my opinion of a comment he made.

Good so we all had a laugh.

 

[atticus]

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.

The context is pretty clear. Anyway, I agree. It did make me laugh.

 

[sle]

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.

Really? What exactly do you think I missed and how does that influence my ability to trade options?

 

[sle]

Quote from StarDust9182:

My comment to SLE was only the first one and that was intended to save him from harm.

In that case, could you please clarify what exact harm is going to come to me if I look at options from vol traders perspective?

BTW, those who do not believe that vol comes before price, ask yourself - "how would a sell-side trader price an option on a stock that has no liquid option market?"

 

[atticus]

Quote from sle:

"how would a sell-side trader price an option on a stock that has no liquid option market?"

Right, and by extension, a ESOP player at facebook who needs to write a collar would go to their liquidity provider (IB) who would use the stat-vol of the underlying asset and apply some non-Markovian model (one example).

 

[iceman1]

Quote from sle:

In that case, could you please clarify what exact harm is going to come to me if I look at options from vol traders perspective?

BTW, those who do not believe that vol comes before price, ask yourself - "how would a sell-side trader price an option on a stock that has no liquid option market?"

i cant believe the b.s. some guys waste their time debating; its amazing to me how much you guys over-think everything with options.

Look, if you are good a direction then you will usually do really well with options. There are important times when vola is important. But over 20 years I gotta tell you that every time I am "sure" about direction or get lucky to be correct, my long options and short (sold) options do just fine.

Look at options from a vol traders perspective. Great! Now what dos that do for your profits? If it helps you, then why argue about it.

If you are talking about volume, then what's the point?!

 

[sle]

Quote from iceman1:

Look, if you are good a direction then you will usually do really well with options.

If you good with direction, why complicate your life with options? Just trade the underlying....

 

[stoic]

Quote from sle:

If you good with direction, why complicate your life with options? Just trade the underlying....

duhhh!!

For the leverage !!!

 

[sle]

Quote from stoic:
duhhh!!
For the leverage !!!

you can trade on margin or trade futures/CFD/forwards instead. options are there to either take a limited loss view on the underlying or to trade vol.