Are options a waste of time and money? (pun intended)

If you are serious about making money, first trade the underlying stocks or futures successfully. Then add options. If you do not know how to trade the underlying successfully, you will likely lose money in options.

 

It seems like Dest isn't active here anymore.
This was his last post from June 3rd.

 

101 percent agree if long gamma..

Short vol,not as much,and I am simplifying..

With that said,you are spot on regarding the directional component..But easier said than done

 

Here is a pointer: I never allow my long options to expire to $0. From experience, that is the #1 killer. I simply roll it and then sell against it for a credit.

Eventually you should be able to make profits through collecting cash flows all the way into perpetuity. You also need to manage your liquidity and risk and your deltas and gamma to give you a directional and volatility bias.

But allowing long contracts to expire worthless is a cardinal sin in my book.

But if you started by simply using a delta/gamma neutral strategy and adjusted along the way then you will eventually be profitable.

 

Does not compute

Long the 6 month ATM call,goes against you,I'm assuming you roll out and quite pissibly up?

Then you turn a naked long into a vert/ ratio??

P.s. I see you edited

 

Been there done that back in 2013 when I first started trading options. Maybe I didn't do it right, but the bottom line is it didn't beat buy and hold the underlying.

 

You have to trade in the context of your overall position and what you are trying to accomplish as well as the purpose of each contract. How did it go against you: Theta decay? Price fell? Volatility crush?

If I am bullish then I am short puts to expense the long calls and if I am bearish then and I am short calls to fund the long puts.

I don't do simple long calls(or puts) as my only position.

You can use these like shares (its called synthetics). If you are correct then your short premium expires to $0. You could profit without paying any money down or even receive an upfront credit.

 

If you don't want to manage all of these contracts on a daily basis (and I don't fault anyone who doesn't want to) then a buy and hold of shares will be better, IMO.

 

I already proved you are correct.

STOP WAITING!!!
Give up trading !!!!!

 

I dont get your point.....options are an investment tool, they dont make money on their own. If you have no undersanding of how options move and cannot analyze the underlying correctly theny you will constantly lose money. The premium is simply the cost of the strategy but who cares if you buy an option at $1.20 and sell it at $3.00 and make money.

If you run out of time then you chose incorrectly..

It is a poor trader who blames the tool when they dont know how to use it.

Also to say something fucktarded like you need to use the underlying... no shit sherock.... google what a derivative is haha