You said that most people buy OTM options. I am just saying that an OTM option is equivalent to an ITM option via put/call parity. For example, if you buy an OTM put it's also equivalent to buying an ITM call, you can convert them by simply trading stock against it. -- I was saying that your OTM statistics are misleading in more ways then one -- now that we established that you don't understand p/c parity, it's not important any more
WOW, you are miles away from the context of my post on selling Iron Condors beyond the expected move of the option to expiration (which it appears that you do not even understand the concept) You are also miles away from the correct description of put/call parity (Put/Call parity is BUYING the Call and SELLING the Put at the same strike price. You had absolutely nothing correct in your definition yet you demean me for even asking you to explain why it is relevant since it is something no one would actually do anyway. Even more troubling to me is the general tone in this entire thread. It is like ET is made up of a bunch of vultures who only get their nourishment by devouring someone else. Where is the collective encouragement and inquiry with each other?
Sorry, I just had to quote this for posterity Just for the general education of the readers, put call parity relationship is defined as C - P = B*(S - K), so you can totally twist any way you like, which is what I did. It's a standard practice to trade delta against your options, including doing complete conversions - that's how market makers flatten their books. Never mind, though, carry on.
Back to our card counter here.... IF he's for real... Whether or not the analytical and mathematical skills from card counting apply to trading, which many on this thread have debated... IF his story is true, then I'll have to say his odds of succeeding are far better than most who attempt to trade. To be able to do what he allegedly has done and in the face of such prior adversity, takes a very determined and hardworking individual. I would be willing to bet whatever he finds a passion for and is determined to master... he will succeed. It could be trading, it could running a business, it could be learning a language or a musical instrument. IF his story is for real... I'd bet on him to win. Not from his pre-learned skills... but from determination and hard work alone. All real winners have this trait in common. And real winners are few and far between. He's got it....."IF" its true. And dude... Mr SCG... your job here at this point is to not convince anyone of your story. Your job is to get to winnin'. G/L -vz
Well he's got a brain seems to be capable of objective thinking and doesnt get bogged down in the details ( spelling and grammer ) I'd say he's got a very good chance over 50/50 of making it. Card counting won't directly gelp, but he can think quick so scalping/daytrading best bet, stick to short term, the advantage is in the shorter term not longer, longer the hold more it just becomes a gamble and the win ratio gets to 50:50 which is why poor wanna be traders oreach longer term. Open IB account with 10k get hitting it via demo until you have a working plan then go live. Remember 10mil is required for yesterdays millionaire status, it just doesn't last and zero interest to be made.
Hi smallcapgrowth, First of all, greetings and all of the best to you. You already have shown traits that (I believe) are necessary for success in trading. The understanding that you need to put in the hours studying. You need to practice and know what you are going to do in all scenarios in advance. You need to follow your rules. Books that I would put at the top of your list, all by Howard B. Bandy: Foundations of Trading. Quantitative Technical Analysis. This is the most important book. Mean Reversion Trading Systems These books are most useful for people who are willing to put in the work to learn some programming and testing skills. These book give you access to AmiBroker and Python code. Subscribe to Stocks and Commodities mag. http://traders.com/. I use it to learn new techniques and get ideas. Join Meetups in your area. Where I am, Boston has lots of useful meetups. Meet successful and unsuccessful traders. Learn and discuss ideas and sources of useful information. Look at the Hall of Fame threads in Elite Trader. (people like NoDoji, hint) Get a platform to test and practice with. There are many that are probably good enough. For testing I like AmiBroker (inexpensive and maybe the best). Free to use Ninja Trader. Others with lots of support; TradeStation, Think or Swim. Open a brokerage account with a good paper trading system. I use Interactive Brokers as do the majority of experienced traders. The paper trading is really good in my experience. I have often run the same (automated) strategies on both real and paper trading accounts with very similar results. The results pretty much average out for me. I have even had short entries take minutes to hours to execute, the same as my real trading account. Don't trade with real money until you prove to yourself that your system(s) work. When you start trading with real money, remember you don't have to buy 100 shares. You can buy one or ten, whatever makes sense. As someone already pointed out, although there are similarities to gambling (by that I mean your style of gambling, which I don't consider "gambling"), there are major differences. Kelly is, in my opinion, not appropriate for position sizing. You will learn a (IMO) much better way in Dr. Bandys books. There are many way to make money in trading. I am convinced that most can be made to work. Keep in mind that having a diverse group of methods can smooth your equity curve greatly. Also, as you progress, think Market Neutral. I think Wykoff and its derivatives are useful to study. Online courses. (Lots of programming, statistics, R, etc.) https://www.coursera.org/ https://www.udacity.com/ https://www.edx.org/ https://www.udemy.com/courses/ (cheap if you wait for email specials. $10 - $15) Podcasts and Videos https://www.youtube.com/channel/UCXtFh3dcGQ1wfORL1tZxKrQ https://www.youtube.com/channel/UCoY3-SzCItjOB9_6JINRXOQ https://www.youtube.com/channel/UCQH3d17HKuhp-bg_z8ourNQ For you musical enjoyment https://www.youtube.com/channel/UCORIeT1hk6tYBuntEXsguLg https://www.youtube.com/channel/UCbK6S8jFtYZ3UnPhWRIJ0bA https://www.youtube.com/channel/UCqatJlFAhRboXrFNAG0rsDA I love ELP Other unrelated stuff I like https://www.youtube.com/channel/UC7DdEm33SyaTDtWYGO2CwdA https://www.youtube.com/channel/UC7_gcs09iThXybpVgjHZ_7g There are some people that contribute useful information on these forums, I use the ignore feature a lot. Take care, -David
Holy crap, award for dumbest post claiming to know something and then citing it completely bass ackwards. Put call parity is....buying the call and selling the put???