options . . . very hard to make money

Discussion in 'Options' started by billyjoerob, Aug 29, 2010.

  1. spindr0

    spindr0

    LOL. Good point.
     
    #41     Aug 30, 2010
  2. Two of my kids started school today... anyway, Long the SLB Sep 45/55/65 fly from 6.75. It's not a great position by which to mark against a short at 5.25 (due to neutrality), but will outperform the stock (either long or short) over the next 3 weeks.
     
    #42     Aug 30, 2010
  3. That's absurd. Where would I get names?
    Do you think people write to me tell me how much they make?

    I know you can make money using options. But it is not only using 'options' that makes money.

    It's your attitude.

    Its your ability to manage risk. This is the single most important requirement for being successful. One big loss hurts and those who manage risk skillfully don't allow that to happen. They are prepared for all contingencies.

    As a non-believer, you just want to argue. You don't want to take the steps required to learn the skills. Or, it's possible you simply cannot learn those skills? Just as not everyone can become a pro athlete, or opera star, so too, not everyone has the talent to make money trading.

    Don't blame options. Blame bad strategy choices, inappropriate positions, poor risk management. Those are the reasons why those 'gamblers' you like to mention lose money.

    'It's not easy" means you must work at it. No one is coming to hand money to you. The fact that you don't believe that it's true does not diminish the truthfulness of my statement.

    The fact is making money with options is not the difficult part. The part that results in so main failures is the inability to keep the earned money. Once overconfidence sets in, you are doomed.

    Mark
     
    #43     Aug 30, 2010
  4. Wrong question.

    What you want to know is how did he/she manage risk. That's the secret.

    Strategies are seasonal. Some work exceptionally well, then fail. But solid risk management works forever.

    Mark
    the Rookie's Guide to Options
     
    #44     Aug 30, 2010
  5. what does 5.25 mean? I do not understand the sentence. Could someone explain it?
     
    #45     Aug 30, 2010
  6. Typo, short from 55.25 in shares.
     
    #46     Aug 30, 2010
  7. thanks
     
    #47     Aug 30, 2010
  8. There is however a fundamental problem with options trading: it is a negative sum game. Therefore no matter how hard the overall group of participants learn how to trade them, the majority will lose. I believe that people have to understand this inherent issue in options trading. It cannot be put under the carpet of losing is always due to lack of skill/etc. Also those who only buy premium, and have no edge in underlying direction would likely lose.
     
    #48     Aug 30, 2010
  9. Apparently the guy below runs not only a CTA program but also Many other services (including joining forces with some brokers) as well! So many sources/streams of income!

     
    #49     Aug 30, 2010
  10. imho, Partial view - however, Incomplete!
     
    #50     Aug 30, 2010