Options have a feature that underlying does not. It's called time decay. Nuff said. This is common sense folks. Thank you for your time. --Ishmael
This seems to be a rather silly argument played out over and over again on this board. Why not buy, sell and/or spread as one thinks appropriate FFS?
Actually, not enough said! Time decay does NOT equal edge! In general, options are fairly priced, the days of mispricing are long over. So when you sell options you have small wins most of the time, and occasionally get a huge loss that wipes out the wins. When you buy options you lose small most of the time, and occasionally make a big win that covers the losses. After commissions and slippage you're down either way.
Is that the same type of fact and/or common sense so many here on ET refer to when discussing TA and/or price charts, you know with the 95% failure rate. As with most things in life it's not always what you do but how you do it that makes all the difference. Regards Johno
Unless of course you have a good read of the market and impecable timing! If this is the case then buying is the far superior alternative due to the usually greater RR. Regards Johno
You're absolutely right! You don't want to be a fool (and make good money), do you? Please don't change your mind, ever!
"Scaling out" is inferior behavior http://www.elitetrader.com/vb/showthread.php?s=&postid=2523179#post2523179
i think i've said this like 5 times, but trading direction, i like ITM calls i can't see OTM calls working as a long term strategy for me personally.