Why I don't go long options

W

wxytrader

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The statistical retrace would bring to you to the .38 fib and for a timeline around APR26. As you can see @ expiry if you had buy an APR26 18 strike call you won't fair too well.

Buying atm performs a little better, but the risk is also higher, and it still requires a timely move to 17 by APR22 or you will be underwater fast.

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zdreg said:
Professionals don't trade short term options.
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Ya thanks like I didn't know leaps existed. Clearly leaps are favorable but you need capital, and need to time it properly to maximize gains or suffer larger losses if it goes against you.
 
wxytrader said:
Ya thanks like I didn't know leaps existed. Clearly leaps are favorable but you need capital, and need to time it properly to maximize gains or suffer larger losses if it goes against you.
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Leaps by definition are long term instruments when they are initially listed. Time is on your side.
 
zdreg said:
Leaps by definition are long term instruments when they are initially listed. Time is on your side.
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How long are we talking? Sure you can go way out and nothing happens, but once you get within 6 months if you aren't itm the time decay is going to destroy you. Been there buddy...not pleasant. Not to mention the spreads are usually garbage so once in you are committed.
 
wxytrader said:
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The statistical retrace would bring to you to the .38 fib and for a timeline around APR26. As you can see @ expiry if you had buy an APR26 18 strike call you won't fair too well.

Buying atm performs a little better, but the risk is also higher, and it still requires a timely move to 17 by APR22 or you will be underwater fast.

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Hello wxytrader,

How much money have you made this week trading the markets man?

I will go first. I am at $3400 so far.

See below.

https://www.elitetrader.com/et/threads/algo-quant-traders.379241/#post-5956860
 
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