How did you learn the intricate rules of trading Futs and Opts ?

@Scataphagos



Guess what I mean by intricate details is one such thing that I learned on the forum - that the options do not close at 4:00 on the last date - because they are open until all the exercise etc. is settled and that any short position on options.

Also that the ATM options can be exercised !

I guess there would be other such technical details which the basic definitions would not cover in detail.

 

Every time I learned one of those tiny but important details it was because I lost a bunch of $$ on it.

 

LOOL We all know who this is directed towards!

I feel like this is how the standard PM to dest goes.

Everyone : "Hey Dest, how do you choose your butterfly strikes"

Dest : "I look at a local vol model before I flip delta and gamma. Then I see if the payoff is bimodal. If it's not I create a truncated distro to model the area under the curve. After that I price the risk reversal and check the polar coordinates of the dgamma/dvega".

Everyone : "That's awesome! Can you explain it again in english."

Dest : "Sorry I can't get into details".

 

If you wished for an even-keeled answer, you'd have posted this question/poll in the trading section. But since it is in the options section, I can respond only with, "Options folks are insane. Stick with futures, you live longer."

 

And some music, for the hell of it.

 

options and futures have risk and reward. the risk is the same now a days with everything electronic

 

pay attention to animal behavior in the wild and intimidation techniques. understand your segment of the mkt and who u are to the mkt and make sure you trade differently

 

You forgot to include one important choice in the poll: OJT, in other words, learning by doing.

 

You mean, doing it in the real world? OMG, that is heathen! That involves homework and stuff.

 

It's Chicago and everyone who had an interest had the opportunity to be a clerk, runner or ripper.