I was very serious. So, I'll say it again. ------Pay attention to the underlying and you can easily see the attractiveness. Thank you for your time--Izzy
From a non option trader : you need to know what they are, after that I found the only thing that you need to understand is delta and how it changes (gamma) and be aware that you own an ice cube (theta) and that vol can destroy you when it collapses (vega). Options outright on the long side are for suckers, you need almost perfect timing like market moves straight away your way (the very week you put the position on) . And big ! To sell naked you need good TA and risk mgmt. As you start other strategies you need more advanced knowledge , more time and more tools.
For every leveraged vechicle you need "almost perfect timing" otherwise if you trade with stops you will simply get chopped to pieces. The advantage with options is that they provide the opportunity to tailor your position to market conditions. "To sell naked you need good TA and risk mgmt." To be honest I'm not to keen on naked option writing having been privliged with a first hand experience of what can happen when things go awry. Regards Johno Regards Johno
Thank you for sharing your thoughts. The beauty of ET is that people get to share, whatever their level of knowledge. Regards Johno
Buying options is only a fool's game if you treat it as such. There is no inherent advantage to either buying or selling options. However you can develop strategies for both and one's that combine the two if you find an edge for doing so. Joe.
Option selling has a tremendous advantage over option buying. This is a proven fact and is simply common sense.