I have been in the Options business when Wade Cook started giving his seminars. Lost lots of money in 1996, 1997 on his crazy Win system. Now Wade Cook is gone and facing IRS and possoble jail time. Those were the days when stock commissions were still $100 roundtrip and no Internet! So your assumption is wrong again Quit trying to knock somebody down, it will com back and haunt you in many ways, you won't like. Yes I make 10% returns monthly and very consistently and there is nothing you can do about it either. I am facing the music today with a 300 drop in Dow and 45 point drop in SPX as we write today and it hasn't fizzled me either. Got it?
Yes its worth it. These market corrections were long overdue. Knew what was coming, planned ahead and executed some trades that will keep our heads above water. Making 5-10% consistent returns a month you call that pennies? I hope that is what you meant despite the stupid typo I see.
There is nothing hypothetical in what I posted. You either believe it or move on, no place to throw in punches and barbs and make yourself a fool. People are making lots of money in options, but the majority loses a lot. I hope you don't belong to the latter group.
Risk depends on your strategy and market conditions and the underlying. Where did you get that 10: 1 ratio? Is than some standard type of pipe fitting that you have to buy at the local hardware store?
My apologies to the OP (who's apparently abandoned this thread) and being off topic one more time. You may enjoy this one if you've flown before (turn up your volume): <a href="http://www.youtube.com/watch?v=5j9_aqJ_4n0&mode=related&search">Amazing Landings</a> Artist: <a href="http://www.amazon.com/All-I-Need-Air/dp/B00002JX32/ref=sr_1_1/102-6451024-6069700?ie=UTF8&s=music&qid=1185518388&sr=1-1">Air</a>
If you can trade the underlying, just trade the damn underlying. If you can't do that successfully, then nobody has any right trading options and they'll just get their ass handed to them when they least expect it. A crappy way to make a living. [/B][/QUOTE] Trading the underlying required lots of Kapital, and when you invest lots of Kapital ( written with large K) you invest lots of risk. Options are a special vehicle that reduces risks and given as a tool in the hands of an "unsupervised monkey" it can be a lethal weapon thats more likely to kill the monkey first. Given in the hands of a craftsman who knows the art, options can be powerful income generating tools, that one can operate with so little at risk, and save that precious Kapital ( written again with large K) for a rainy day.
[/QUOTE] But alas...eventually a couple stocks gap hard against you, or the market makes a sudden jolt...and all those months of hard work go up in flames in 48 hours and you're trading account is filled with a bunch of stock that you never really wanted and you're peeing in your pants and you have a giant knot in your stomach and you sure as hell wish you'd never even opened up McMillan that day at Borders when you were bored because you'd already read ActiveTrader and Stocks & Commodities and you figured there must be an easy way to make regular income and you were proud to tell your wife you were going to pay the mortgage every month with your premies but now you are just a piece of crap and you maybe have to even consider (God forbid!) looking for your resume. A crappy way to make a living. [/QUOTE] Would you rather be a Kirby Vacuum salesman going door to door? Or polish dishes at a local steakhouse for mimimum wage in the wee wee hours of morning ? If that strategy in life seems fine than option selling business is nuts, and you shouldn't have opened Larry McMillan's books at all.