Billy ... couple of questions .... assuming succesful option traders were willing .... How much would you be willing to pay 1. To see the evidence and 2. To be mentored for say 12 months
I wouldn't pay anything for mentoring. Trading is more like dieting than knowing how to play the piano . . . Everybody knows how to lose weight, they just don't follow the plan. If there is a way to make money in options, it should be for sale at Amazon.
To take the other side of the argument, there do seem to be ways to make money in options. There may be some bivalent outcomes that are better played with options, taking advantage of the "convexity," as one poster put it. Adam Warner at DailyOptionsReport seems to have some strategies that work, such as selling calls on broken stocks and selling puts on volatile, trending stocks.
Hypothetical: Your model predicts a rally exceeding 1SD in 5 trading days on XYZ with a drop of 1SD on SV. I can assure you that options will produce the best ROC and risk-adjusted return. If you like i will post a position here at 10am Eastern tomorrow. A delta position in options and one in shares. We can wager on the outcome.
If you can predict the timing and the extent of a move, then you've solved 100% of the problem. Yes, if I knew McAfee was going to be acquired, I would buy options too.
Nonsense. I am not referring to inside info or clairvoyance. I'll post a position I am taking in SLB at 10am Eastern. A position that will outperform a position in the shares in absolute and risk-adjusted terms.
Quote from billyjoerob: You can't find anyone so you claim there "are NO retails options traders consistently make money"? That's crazy in the first place. No, it's not. It's that simple. I would have more anxiety with margin which can wipe a person out then long options, where the max risk is known up front. Besides, your level of anxiety has nothing to do with the power of options. Also, there are trades that are volatility trades that simply can't be done without options. If you don't want to use options however that is fine and I would not try to talk you into using them - just understand that for a certain group of people they can be profitable over and over again. JJacksET4