your "typical" strategy

M

morganpbrown

To those who do this profitably (and hell, even to those who don't!)...

Is your "typical" trade a simple strategy (2-option spreads, condors/butterflies) or a more complex multi-option trade (or trades)?



(Background: I am reinventing the wheel, errr I mean, building up my modeling infrastructure, and wondering how complicated it needs to get. Since coming here and slowly getting edumacated, I've made nary a trade. I think this is a good thing. I don't plan to maintain a state of trading paralysis forever)
 
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To paraphrase a famous saying, there are two kinds of fools in the world: one says "this is simple, therefore good", the other says "this is complex, therefore better." I don't think complexity in and of itself is beneficial, at least once you get past "simplistic". It may be necessary when you start managing trades, but... if you can't drive a car, trying to fly a helicopter isn't likely to work out well for you.

Also: being patient while learning is... something I have in strictly limited quantities; I found out that I need to get my hands on the controls once past the basics or die out of sheer frustration. Theory, for me, just doesn't stick all that well unless it's reinforced with a few "a-ha!" moments... which, unfortunately, often leave bruises. But, to quote Dr. House, "we are who we are"; if your approach works for you, stick with it. :)
 
BlueWaterSailor said:
To paraphrase a famous saying, there are two kinds of fools in the world: one says "this is simple, therefore good", the other says "this is complex, therefore better." I don't think complexity in and of itself is beneficial, at least once you get past "simplistic". It may be necessary when you start managing trades, but... if you can't drive a car, trying to fly a helicopter isn't likely to work out well for you.

Also: being patient while learning is... something I have in strictly limited quantities; I found out that I need to get my hands on the controls once past the basics or die out of sheer frustration. Theory, for me, just doesn't stick all that well unless it's reinforced with a few "a-ha!" moments... which, unfortunately, often leave bruises. But, to quote Dr. House, "we are who we are"; if your approach works for you, stick with it. :)
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haha, I shouldn't have said "nary". I have actually dicked around with a couple non-PMCC trades (wow!) and closed them without a clear understanding of what happened, other than volatility dropped when I expected it to rise. So I definitely have your disease ("I need to get my hands on the controls once past the basics or die out of sheer frustration"). :D But I haven't jumped with two feet in any one direction. Yay for me...I guess...
 
Handle123 said:
Unlike most here who implement "Greeks" or IV in their decisions, I use very little. But as far as entries and exits, it be complicated in options world.
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Interesting. Are you mainly trading simple spreads or something more complicated? Are you trading short term bets mostly?
 
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