why don''t people just sell options instead of trading minis?

[Trading Education Buyer]

If you want go short , sell put and sell futures/stock , if you want to get long sell call and long stock/futures , risk of choput is reduced .

The premium you receive will be about 3% for puts or calls on indices for 2 months , that 3 % gives you an edge /cushion , price has to go more than 3 % against you before you see loss .

If it goes > 3 % , you can sell second option to get 6% premium on options , if you are clever you get trade your way out of losses by further option trades .1 future /stock = 2 options .

You will find something profitable , if work hard on this , otherwise you will be with charlatans forever.

If you are smart enough , you will also find a strategy that makes 100% a year return , on futures and options.These smart traders are on their yachts not on E T.

Most people are sold the snake oil of price action , technical analysis , trends etc Your data confirms the value of these analyses, plus something else more important , this is hidden by all snake oil merchants and their accomplices.

Every time you want to go short , a put and sell a put atm and buy a call 7% higher .If price goes 3% against you sell a second put at +3 % and atm at 3% and buy a put - 7 % , sit and wait and eat premium decay.One way of doing it

7% on dow jones is almost 900points

Another way of doing it "think outside the box" or the option formula

Just an rough idea

Approximately 70% of the time , this should win , if the timing of the entry is good on daily time frames , it may not go > 1 % against you , 70% of the time +

everything is possible and it truly is.

 

[Overnight]

...everything is possible and it truly is.

Off-topic for sure, but there truly is something in this universe that is absolutely not possible, and if it happens I will eat my hat...

A revival of the TV show called "Cop Rock". https://en.wikipedia.org/wiki/Cop_Rock

It cannot ever again occur in this iteration of the physical universe.

So your signature, TEP, has a rider attached, lol!

 

[Trading Education Buyer]

Every time you want to go short , SELL FUTURES and sell a put atm and buy a call 7% higher .If price goes 3% against you sell a second put at +3 % and atm at 3% and buy a put - 7 % , sit and wait and eat premium decay.One way of doing it, you have upto 2 months to get a profit.

7% on dow jones is almost 900points

Another way of doing it "think outside the box" or the option formula

Just an rough idea

Approximately 70% of the time , this should win , if the timing of the entry is good on daily time frames , it may not go > 1 % against you , 70% of the time +

everything is possible and it truly is.

If you think outside the box , and devise strategies outside the box , you can beat the markets.

 

[Trading Education Buyer]

It cannot ever again occur in this iteration of the physical universe.

So your signature, TEP, has a rider attached, lol!

The job of a manager, like that of a teacher, is to inspire people to be better. Give them better technical skills, make them winners, make them better people, and they can go anywhere in life. sir alex fergusion

A great teacher and a manager

https://hbr.org/2013/10/fergusons-formula

 

[MarkBrown]

so very true - you post anything constructive on et and the stupid fucks come out in force. it's really amazing like a mosquito they will hunt down intelligence and attack. this was not always the case on this forum. i really think it's that dawning of college polluted and brainwashed minds.

they think they are smart because they are pampered and cuddled all their lives and mom and dad pay to send them off to the profs brainwashing class. when they graduate they then find out is all a lie but instead of blaming the machine that made them what they are they turn against first mom and dad, and anything that is decent and good. they are basically trained like a dog attack no matter reasoning because they have none.

the only skills that the college educated kid has is the ability to memorize what a prof wants them to regurgitate upon test time. i have met only a handful of grads who managed to come out unpolluted and with their ethics in tact. primarily those grads had deep religious upbringing and managed to break down the bullshit to good and evil. if you don't have a spiritual awareness you may succeed in life but you will not win, you will never be at peace with the ebb and flow of situations.

When you write an article about anything, trolls use the comments to attack. They feel frustrated - but haters are losers. It's not good to feed this aspect. It's more intelligent to be constructive

everything is possible and it truly is.

 

[Trading Education Buyer]

I did this strategy , I know it gives 100 ticks a week average , thinking outside . the box.Most trader can't earn 10 ticks

Investing in stock market indices via option spreads beats buffet?

 

[Trading Education Buyer]

so very true - you post anything constructive on et and the stupid fucks come out in force. it's really amazing like a mosquito they will hunt down intelligence and attack. this was not always the case on this forum. i really think it's that dawning of college polluted and brainwashed minds.

 

[tlatoani]

It would almost seem like instead of going long or short minis you should just sell a put/call instead...at least you get a nice cushion from the premium if you're wrong initially. the data shows 90% of traders fail, most regardless of duration. Peopel really suck at timing the market, on all time frames. having the premium work to your advantage should at least bump the odds a bit

Because they are addicted to the action. Ever see a DOM Price Ladder? It has all the addictive qualities of a slot machine, people need to wake up, YOU ARE THE PREY!

 

[tlatoani]

It would almost seem like instead of going long or short minis you should just sell a put/call instead...at least you get a nice cushion from the premium if you're wrong initially. the data shows 90% of traders fail, most regardless of duration. Peopel really suck at timing the market, on all time frames. having the premium work to your advantage should at least bump the odds a bit

Because they are addicted to the action. Ever see a DOM Price Ladder? It has all the addictive qualities of a slot machine, people need to wake up, YOU ARE THE PREY!

 

[Handle123]

"A winner sees a small loss as a win...
.

You had me at this line as anything that comes after is meaning less to me.

I have not spent enough time studying options to know whether trading them for 60 minutes or trading ES would produce more or less profits. Perhaps the spreads be tighter in SPX for entry but whether they move quick enough in my style of trading is an unknown, plus I not going to trade more than an hour as volume shrinks after. I think one main factor though is desire and ease of doing it, I doubt I want to spend a great deal of time learning tick by tick of study, it is just easier to do off weekly and daily charts of selling credit spreads or covered spreads.

Most of the discussions we are talking about naked put / calls. What do you think about selling spreads, where the risk is reduced, though the the reward is also smaller. However you would still have some kind of buffer if you are wrong.

Actually, really depends how many strikes out the spread is, many stocks/ETFs, if you go out 8 strikes options are a nickel which is almost being naked and reason many even have this cause limited margin held. But you are concentrating on profits whereas I concentrate on risk, very few of what I do expire worthless and I am just looking to get out at percentage. I think too many are looking at profits first whereas keeping losing percentages down I think should come first.