Have You Seen This Done Before?

Discussion in 'Options' started by tj1320, May 9, 2006.

  1. tj1320


    If an options trader could make 10% per month, theoretically that person could turn $5,000 into $1,500,000 in 5 years. Here is the chart I found but I found it on a penny stock site. :p :eek: I know this wouldn't happen with penny stocks.


    It makes sense for options but I would think that the open interest would REALLY be a factor after a certain point because I can't see being able to put six figures into options every month and eventually 7 figures. My previous trades have shown me that 10% is very easily obtainable per month but I'm not sure how that would change once the account grew into the six figure mark. Thoughts? Do you make 10% or better per month from options trading? If so, how large have you grown your account?
  2. tj1320


    Wow, nobody makes at least 10% per month trading options? I would think that would be easy in the options market.
  3. You're only making 10% per month?

    Come on... If it were "easy", everyone would be an options trader. If you've gotten 10%/mo with no work, then you're either a genius or using too small of a statistical sample.

    Both categories of people exist. Soros is one of the former. Most people are one of the latter. Even Soros wouldn't claim trading is "easy".
  4. Yeah dude, its really easy, thats why that guy offers a subscription based website! :p
  5. Pabst


    Real easy. No one ever has a loser.
  6. gangof4


    let me attempt to redirect the focus away from the 10% per month part (because we all already know how easy that is- duh)...

    for those of you who trade options for a living:

    given the strategy that you use, at what level of assets do you feel it would become more difficult?

    i don't have a good feel for how much size matter and, at a certain point, works against you. i have seen single trades of 500 contracts in a strike with an open interest of only 400, and average daily volume of 100 contracts. yet, when i look @ the execution of the 500 contract trade, it is usually pretty good. in fact, from my limited sample size, it seems like the large trades actually got better than average executions.

    so, does size matter? opinions?
  7. cnms2


    You're joking ... :) This is why you got just a few, delayed replies.

    What strategy are you trading? What is your %risk to get the 10% profit?
  8. Options just rule.

    So much leverage with so little down payment, and you can also have money coming in for just puttin up some collateral. So many strategies to use. As long as u understand each type of option (call and put) and understand each strategy in which way you want the stock or underlying to go, all strategies are easy. You can learn how to hedge/protect, you can rescue a bad trade. Options are just so freakin awesome.

    DAMN!!! I just love options. Can't you tell I just love the damn things????

  9. pattersb

    pattersb Guest

    For a novice, could you briefly explain how you rescue a bad trade? Or maybe provide a link or two.
  10. So, so wrong... Rescue = add risk and/or reduce potential return. There is no such thing as a rescue or repair strategy. Offset and move on.
    #10     May 18, 2006