“My name is John and I am a recovering options Trader”

Discussion in 'Trading' started by Jdesey, May 7, 2025 at 2:30 PM.

  1. D1 is the place to be. You can probably make a decent living with 10% of the stress by simply buying daily NHs in small size, 30-50 names, and simply cover when they hit say their 1/2 straddle figure (optionomics alpha).

    2019-2021 I had my best notional return by trading D1. I would often turn it into a vol-position (D1 -> synthetic -> wings) but it was an 8-figure run of stock picking and beta in shares.

    If you're any good at direction and don't understand convexity moments (gamma, dgamma, etc.) then you're actively doing harm by trading vol.
     
  2. Did you add much alpha turning your D1 into flies over say just closing the D1 position and move on?
     
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  3. They weren't necessarily flies, but those that I did convert allowed me to take greater size.
     
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  4. MarkBrown

    MarkBrown

    dear john, did you ever why anyone in their right mind would sell you a perfectly good option?
     
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  5. Greater size from the outset or you increased when you converted?
     
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  6. Latter.
     
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  7. maxinger

    maxinger

    My name is max. Maxinger.

    I tried trading many things under the sun and moon.
    I tried trading index/stock options, US/Japan/Sgp stocks, futures, CFDs, spot forex
    swing trading, day trading, investing,
    outright, inter spread, intra spread, vertical/horizontal/diagonal spread .....

    After many years, I decided to day trade index/commodities/metals/bonds/currency futures only.
     
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  8. Real Money

    Real Money

    How many years did you trade 'em? Do you know the greeks and the intermarket type stuff?

    Do you know any financial mathematics?

    Besides the decay, what else do you hate about options?

    Thanks!
     
    Last edited: May 8, 2025 at 8:12 AM
  9. taowave

    taowave

    I basically asked the same question...

    If you are a directional trader,you really dont need to go thru the financial mathematics..

    But you do need a disciplined systematic approach,and it all starts with being a decent directional trader.

    My guess is if I asked the OP to choose between a position in the underlying vs a delta equivalant/dollar equivalant position in a Call, Call spread , B-Fly type structure, or Risk Reversal he would be hard pressed.

    And for the record,I do believe 90% of directional traders should stick to the underlying




     
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  10. zdreg

    zdreg

    Amateurs vs. professional market makers. Bettors vs their bookies Be serious ET posters.