I find this Forum, and the people on to be WAY beyond the level of discussion presented on most of the other fora. Now, I'm still new to options and learning, but these discussions usually get me heading for the books to look things up, and I have to read like mad to understand the conversations. So...am I really that new, or are a LOT of these discussions really that far ahead of the others that appear on ET? Maybe it's just unique to options?
Some discussions here are almost impossible to follow while others are at the other extreme. Of course, there are a whole bunch in between. If you are not familiar with options and their terminology then it can be a bit daunting. Once you've brushed up on the topic it will be easier to follow the jargon. But you are right, options are by far the most complex financial derivatives to understand. However, you don't need to be fluent in the lingo to become successful nor do you need to be a rocket scientist, but you will need skill in money management and you will need to understand how options work, i.e. their greeks and what affects them and how to exploit this information. It makes stock trading look like kindergarten. Best daddy's boy
mummy's daughter asks: if daddy's boy thinks that trading stocks look like kindergarten then why is daddy's boy trading options? does daddy's boy want to be macho or does daddy's boy want to make money? (in kindergarten it should be easier....) what is mummy's daughter missing? thank you Maria
Hi MM not replying for DB but I assume he meant that trading stocks is simple in the fact it is purely directional. Options have several other components to look at and evaluate...however when you learn this you can make MORE money trading options with LESS risk than the purely directional trades in stock.
Thanks aardvark for explaining my reasoning - it wasn't meant to insult stock traders, but simply to point out the complexity of options vs stock trading and the risk reward relationships. From bali survivor: "does daddy's boy want to be macho " thanks for the insult - that's what people like you come to e.t. for, to help folk like me learn with your clever and insightful commentary/insults. Btw, what was the point you're trying to make? Also, what's with the poking fun at my handle? You've got something on your shoulder - a chip maybe? Perhaps I'll give you some advice, Maria. If you don't know anything about options (which is blatantly obvious from your post) then just keep your mouth shut til you can contribute something useful (after all, this is the options trading forum) - we'd all be better off that way. So, do us all a favour and save your smart ass comments for kindergarten. daddy's boy
do you mean that you can get better than a P/F of 10 ~ 20 (depending on what I trade)? I thought that such is already good enough and then why bother with the extra hassle of options. Will not forget the story of the option trader in the NYSE who got in 20+ years 15 M$ together and then made one mistake (priced something wrong) and in one afternoon lost the lot. Seems to me that the hidden risk is a pretty high at times and with all the complexity easily overlooked. DB - don't worry, have studied Natenberg and a number of others and have been tought trading options by an ex NYSE floor trader. And I was not a smart ass, just wondering why you are bothering with options if stocks are so easy. And if you took it as an insult, my apologies, such was not the intention, just trying some light hearted humor. After all we all have a daddy and a mummy. On the other hand, your reaction tells me that you still have a lot to learn and a lot of growing up to do. Bye now, I won't return here. Maria
"And if you took it as an insult, my apologies, such was not the intention, just trying some light hearted humor" Yep, I'm still rolling in the aisles. daddy's boy