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

Discussion in 'Trading' started by wxytrader, Jul 22, 2023.

  1. Ok everybody, lets just let the chart do the talking. Open SPX, or SPY, (or the VIX or VIXY I guess if you are trading volatility?) and post what your trade would be on Monday if you see one.
     
    #71     Jul 23, 2023
  2. taowave

    taowave

    Debit,Credit,convex,concave,Long gamma,short gamma,fly vs calander,split strike or not..

    Wtf is a premium strategy???



     
    #72     Jul 23, 2023
    longandshort likes this.
  3. taowave

    taowave

    Why would anyone entertain helping you with your shitty attitude??


     
    #73     Jul 23, 2023
  4. You are over complicating this. Convex/concave already has its own indicator...RSI. Long/short gamma is no different than being long/short delta. Butterflies/broken wing or not and calendars. These are all basic option strategies. If they are opened for a credit then they are "option selling strategies for premium."
     
    #74     Jul 23, 2023
  5. This shouldn't be that hard for you guys right? You all seem to pretty confident in your abilities. Let's put it to test. I will share my trade I have planned once I find it.
     
    #75     Jul 23, 2023
  6. taowave

    taowave

    Oh boy,its worse than i thought:)

    How long have you been at this and what's your background??

     
    #76     Jul 23, 2023
    longandshort and M.W. like this.
  7. taowave

    taowave

    You do realize their are several posters here who are very successful,some who traded for major IB's and hedge funds....

    You would have been far better off saying others than trading 0-3
    Day options,you cant find any significant edge....

    And fwiw,backtesting on TOS is amatuer hour

     
    #77     Jul 23, 2023
    longandshort likes this.
  8. You are trying to use all this fancy lingo to somehow convince people that you know what you are talking about. Convex, concave for instance is just a slope showing the intensity of the move...concave rising slope is still increasing price but with less intensity than a rising price with a convex slope. THAT is essentially what the RSI does. It will show a stock increasing at a decreasing rate of change.

    https://www.tastylive.com/shows/from-theory-to-practice/episodes/convexity-and-concavity-01-05-2017
     
    #78     Jul 23, 2023
  9. Sergio123

    Sergio123

    My opening trade on SPX would look something like this. It meets all of my criterion.

    SPX.PNG
     
    #79     Jul 23, 2023
  10. What are you back testing for? You have the Delta, so your probability is set. Elliott wave and fibs are all based on statistics already...so that work is done for you. I have heard of hedge funds actually going back to look for similar patterns and trade based on them repeating themselves. Other than the Medallion fund which I think used a form of fractals or EW.
     
    #80     Jul 23, 2023