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Your most successful Long options trade
- Thread starter OddTrader
- Start date
Quote from OddTrader:
So what do they use in general? and
What do you mean "Directional", particularly in trading options? Of the underlying's price?
^ i'm gonna go with yes.
"i think ABC will rise" -> long call, bull call spread, bull put spread, etc.
"I think ABC will fall" --> long put, bear call spread, pull put spread, etc.
Quote from OddTrader:
So what do they use in general? and
What do you mean "Directional", particularly in trading options? Of the underlying's price?
Specifically, they are betting the price of the option they traded.
But, the term directional' refers to a play on guessing whether the underlying asset will move higher or lower.
Mark
Personally I don't think trading long options (probably except backspreads) is Not a viable way to Most traders for long- or short-term) directional plays. Perhaps just me.
Due to such as: High premium, Time value, Precise timing, etc.
Example:
http://www.collective2.com/cgi-perl...emid=9700583&want=publicdetails&fromoutside=1
Due to such as: High premium, Time value, Precise timing, etc.
Example:
http://www.collective2.com/cgi-perl...emid=9700583&want=publicdetails&fromoutside=1
Well the most risky ones were in the oil sector: 1-2 day trades with ridiculous percentage returns. I have learned allocation since then.
Quote from OddTrader:
What was your most successful Long options trade?
Do you still remember it, how profitable, and why you made the particular trade?