Who is really making a living trading options??

[Martinghoul]

Quote from Trader666:
I didn't think you had a good answer.

How could anyone have a good answer to a question like yours?

 

[newwurldmn]

Quote from Trader666:

Tell that to the people whose NFLX puts increased in value by over two orders of magnitude.

If Netflix had only sold off 2percent how would those puts have done? Not well and not because of the leverage.

 

[tickmagnet]

there is no edge in options , you buy oversold for bounce , or sell overbought for drop. Hold it or fold it , like in poker.stick with Spy and slv or gld

 

[rosy2]

Quote from jb514:

The market makers and the financial advisors

market makers are the ones losing in options and getting out of the business. options are one of the places where a retail account can make good returns

 

[Trader666]

If you want to continue to insist, as you have, that speculating with options for the leverage is misguided regardless of who is doing it and why, you can't.

Quote from Martinghoul:

How could anyone have a good answer to a question like yours?

 

[Trader666]

Does that blinding flash of the obvious mean nobody should ever buy far out of the money puts for the leverage?

Quote from newwurldmn:

If Netflix had only sold off 2percent how would those puts have done? Not well and not because of the leverage.

 

[Martinghoul]

Quote from Trader666:
If you want to continue to insist, as you have, that speculating with options for the leverage is misguided regardless of who is doing it and why, you can't.

Why is that?

 

[Trader666]

Because it's false.

Quote from Martinghoul:

Why is that?

 

[Martinghoul]

Quote from Trader666:
Because it's false.

No, it ain't...

Wonderful discussion we're having, innit?

 

[newwurldmn]

Quote from Trader666:

Does that blinding flash of the obvious mean nobody should ever buy far out of the money puts for the leverage?

yes it does. If your view that Nflx will go down but not by some amount then using options to get leverage won't help you profit.

It means that you can't make money on a Option unless the stock realizes a greater volatility than what the option is priced at.

You can theoretically control a lot more stock via options (the leverage ou are referring to) but won't profit unless the realized volaility is greater from what the option is pricing.

Obvious for you now?