HOME FORUMS BROKERS SOFTWARE BOOKS CONTACT US
Elite Trader Your Account  •  Become a Member  •  Help  •  Search    
    Forums ›› Main ›› Options ›› Does anyone make a living using straight directional trades ?  


Post A Reply
    Page 1 of 6:   1  2  3  4  5  6  
rfriend73
 

Registered: Apr 2012
Posts: 72

 

07-20-12 09:56 PM

It seems that most forums on the option section consist of people using multiple leg option trades and I wanted to know if anyone makes a living (or a good secondary income) from straight directional option plays ?

    Edit/Delete Quote Complain
RangeTrader
 

Registered: Mar 2012
Posts: 705

 

07-20-12 11:03 PM

Straight options on SPY a few strikes OTM with the right expiry are basically the same as futures for daytrading... Higher commissions and spread though.

The only advantage directional options have over futures is the weekly options have insane leverage for catching a high odds setup...


Id recommend futures over options if you have a account size over 100k. Otherwise options are better for catching large moves as they can take the heat.

    Edit/Delete Quote Complain
2rosy
 

Registered: May 2012
Posts: 335

 

07-21-12 12:09 AM

you make money market making ,spreading, or beating the system

    Edit/Delete Quote Complain
Put_Master
 

Registered: May 2009
Posts: 1029

 

07-21-12 06:02 AM

You should read the section called... MY OPTION TRADES.
I used to do spreads, and now I'm doing cash secured and naked put selling.
It's NOT for everyone, but I'm comfortable with it.
I feel I have the self discipline not to be greedy. And to use the proper criteria of L-T tech analysis and intelligent fundamental analysis, to do it reasonably wise and safely.

As a side note. Just got back from seeing Batman. Thought it was a big waste of time. Long, boring and a stupid story.

    Edit/Delete Quote Complain
FCXoptions
 

Registered: Jul 2012
Posts: 412

 

07-21-12 06:52 AM


Quote from Put_Master:

As a side note. Just got back from seeing Batman. Thought it was a big waste of time. Long, boring and a stupid story.



Clearly you aren't a true fan of the caped crusader! I enjoyed it though. Bane's voice wasn't quite what I was expecting though and I think Charlize Theron should have played cat woman. But I enjoyed myself.

Sorry to go off topic!

Directional trading, yes and no. I have made and lost a good bit doing it. Then wins are awesome and the losses awful if you aren't careful. Don't trade big sizes on weekly options on a Friday that is for sure unless it's in the money. If your wrong you will lose so much so fast on expiration day.

    Edit/Delete Quote Complain
Put_Master
 

Registered: May 2009
Posts: 1029

 

07-21-12 07:35 AM

I was a fan of the series. I just thought this one was too long and too boring,... and with a story that was all over the place, and too stupid to be believeable. I even thought the acting by a lot of the characters was silly and not believeable.

As for doing weekly options, I've never done them.
Mostly because I'm pretty picky when it comes to stock and strike selection.
So when I finally see something the looks good, I'm not going to waste the opportunity picking up a puny credit on a weekly.
Good stocks offering good strikes, don't often stay at such good value for long. Hence I prefer to get as much credit as i can from them, over a 4 - 6 period.

The annualized % return looks really good on those weeklies.
But the dollars suck.
When i go shopping, stores and hookers want to be paid in dollars. Not percentages.
And unless you go from week to week with either no gaps or few trading gaps, those frequent gaps between weekly trades, will eventually cut into your dollar and % return at year end. Not to mention all those extra commissions.

However, if you're more into trading volatile, and unstable crap, which pays much better premium than the more reasonable valued quality companies,... then i agree weeklies may be the place to be.
Get in and get out.

    Edit/Delete Quote Complain
    Page 1 of 6:   1  2  3  4  5  6  
Post A Reply


Receive an email whenever a new post is added to this thread by subscribing to it.
 
Rate This Thread:

Forum Jump:
 

 

   Conduct Rules  -  Privacy Policy  -  Day Trader -  Day Trader Forum -  Best Trading Software -  Sitemap Copyright © 2013, Elite Trader. All rights reserved.    
 
WHILE YOU'RE HERE, TAKE A MINUTE TO VISIT SOME OF OUR SPONSORS:
Advantage Futures
Futures Brokerage & Clearing
AMP Global Clearing
Futures and FX Trading
Bright Trading
Professional Equities Trading
CTS
Futures Trading Software
DaytradingBias.com
Professional Trading Analytics
ECHOtrade
Professional Trading Firm
eSignal
Trading Software Provider
FXCM
Forex Trading Services
Global Futures
Futures, Options & FX Trading
Interactive Brokers
Pro Gateway to World Markets
JC Trading Group
Direct Access Trading
MB Trading
Direct Access Trading
MultiCharts
Trading Software Provider
NinjaTrader
Trading Software Provider
OANDA
Currency Trading
optionshouse
Option Trading & Education
Rithmic
Futures Trade Execution Platform
SpeedTrader
Direct Access Trading
SpreadProfessor
Spread Trading Instruction
thinkorswim by TD Ameritrade
Direct Access TradingAdvertisement
TradersStudio
System Building & Backtesting
Trading Technologies
Trading Software Provider
Trend Following
Trading Systems Provider