I am just wondering to all the expert options trader here, did you start out trading options or were you trading other instruments first and then added options? For those who currently trade options as their primary instrument, do you also trade futures(not as a hedge, but an outright position in the futures or stocks)?
A few years ago, I started trading stocks, then options, then futures (no forex yet.) At this point, I swing/position trade options and stocks and daytrade the ES, NQ, and YM... different accounts with distinctly different objectives.
I started trading options before anything else. Leverage, Liquidity and volatility are good in some markets. But if you're looking for better liquidity and risk control and to turn over that leverage at a high rate, nothing beats futures. The spread in even the most liquid options aren't that thin, thus, making managing risk/position harder.
Brian, I hear you and agree with what you said, but, having done this for a while, I sleep better at night knowing that my risk is controlled and independent of what the likes of UBL et al do. Carrying futures overnight has potentially infinite risk. So, although I daytrade the eminis, for my longer term accounts, I prefer to get leverage out of options... there's plenty there