Any studies on who normally wins - option writer versus purchaser?

Discussion in 'Options' started by Saltynuts, Feb 25, 2018.

  1. ironchef


    And they are grateful to you for making them rich.

    Someone said both buyers and sellers can win.:D
    #31     Feb 25, 2018
  2. ironchef


    I posted this in a different thread:


    I don't know, it seems like no matter what you sell your absolute performance is about the same as buy and hold? If that is the case, why go through the trouble, why not just buy and hold??o_O
    #32     Feb 25, 2018
    gkishot likes this.
  3. sss12


    I also trade a long gamma strategy, although more of a swing time frame, overnight to 3 days. What size are those trades ? Are you trading delta or vol ? Thanks.
    #33     Feb 25, 2018
  4. sss12


    Ok, you have been posting and asking questions for some time...By now you should know that there is difference between trading and investing. Different risk reward profiles and different time frames.
    #34     Feb 25, 2018
  5. I use the indexes and underlying derivative/commodity look for correlations. I pick a support resistance and use momentum to signal trades. I have implicit feel for how the underlying is trading. It’s basically lottery positions, very small in nature. Even if I lost the money it wouldn’t bother me.

    I can tell what the tendency is on a given day before it’s realized in the option pricing. Like if there is a underlying algo accumulating. So basically delta and vol.
    #35     Feb 25, 2018
    ironchef and sss12 like this.
  6. Be cool if someone would post these amazing trades as they happen, Maybe they do and I'm not looking in the right place. Help me out.
    #36     Feb 25, 2018
  7. Keep dreaming, and searching, and studying -- and gain balls.
    There is nothing supernatural or divine in the market...everything is there, for the taking.

    No one likes a desperate beggar. o_O -- The Lord helps those who help themselves.

    If you want to become rich from the can.
    If you want to be average in the can.
    If you want to be poor in the can.
    #37     Feb 26, 2018
  8. rtw


    this article here answers your original question, only put selling has superior returns to buying and holding in the age of stupid central banks inflating one stupid financial bubble larger than the previous one (this means those buying end with losses):

    mr. Butler at projectoption also shows that historically iron condors and selling puts have a very consistent positive expectancy (which means those on the opposite side end up with losses).
    Last edited: Feb 26, 2018
    #38     Feb 26, 2018
  9. rtw


    there's another trading forum i'm a member of and there is a thread about options on futures there where some traders do post the positions they open shortly after they have done so.
    #39     Feb 26, 2018
  10. ironchef


    I am not trained in finance.

    So, my question is why, on average, are traders doing all this work for no net gains?
    #40     Feb 26, 2018