Is there a tool to pick the best option?

Discussion in 'Options' started by spinn, Nov 3, 2022.

  1. spinn

    spinn

    #11     Nov 3, 2022
  2. Last edited: Nov 3, 2022
    #12     Nov 3, 2022
  3. taowave

    taowave

    Im not sure why hes even bothering with options.

    He's right 60 percent of the time.

    We don't know his risk reward metrics,but I don't think I know one great directional trader who sells premium .

    If he goes the backtesting route I think he will find on a risk adjusted basis,selling premium is not the way to go..









     
    Last edited: Nov 3, 2022
    #13     Nov 3, 2022
    Option_Attack and spy like this.
  4. spinn

    spinn

    And that is more or less what I was looking for. I can figure out which markets I want to trade....man.
     
    #14     Nov 3, 2022
  5. This sounds something like 'what is the best kind of razor blades to swallow? I like being safe, so I'm just picking ones that are about 2"x2" right now.'

    If you're any good on direction, you should be buying options, not selling them - just what @taowave was saying. Selling is basically a bet against volatility (to put it crudely, a bet on minimal price movement) whereas buying is the opposite. If you're any good at predicting direction - and even more so, the distance the price will move over a given tenor - you can make a killing by buying options (e.g., some types of trades have returns in the 100:1 range.) Selling is mostly about smaller returns in steady or decreasing volatility - i.e., when the market isn't moving (not exactly the case right now.)

    All of the above has exceptions and can be modified in lots of ways... that's why it's called "options". :) But in the main, that's how it works. In general, selling options in this market is a bad idea.

    But then, doing anything that you don't understand with options - or trading in general - is a bad idea. And yet, here we are...
     
    #15     Nov 3, 2022
    MrAgi1, taowave and Adam777 like this.
  6. Ayn Rand

    Ayn Rand

    If you are asking these question you should not do options.
     
    #16     Nov 4, 2022
    zghorner likes this.
  7. spinn

    spinn

    Then why am I up on 60% of my trades and profitable overall after about 1,000 trades? Imagine if I were as smart as you are.
     
    #17     Nov 4, 2022
  8. Every one here is always ready to tell you why you should not be trading. Don’t judge a book by it’s cover. Don’t judge a trader by one post.
     
    #18     Nov 4, 2022
  9. newwurldmn

    newwurldmn

    Right 60% of the time but he doesn't know what he's doing and he's quoting a snake oil options vendor.... you've seen this story before.
     
    #19     Nov 4, 2022
    lucysparabola likes this.
  10. newwurldmn

    newwurldmn

    What else do you judge someone one if not their own words?
     
    #20     Nov 4, 2022
    BlueWaterSailor likes this.