Discussion in 'Psychology' started by oldtime, Jul 17, 2011.

  1. I've been hanging out over there on that options forum. Those guys live in this beautiful world of math. When you start thinking about option strategys it gets deep.

    I'm starting to realize some of the strategys I come up with are to limit psycho loss rather than fiscal loss.

    If you go long and get stopped out thats bad.
    If you go long and buy a put and it expires in the money thats not so bad.

    When I run the numbers on my Texas Instruments TL-503SV (hand held) they come out the same. But one of them makes me feel bad, and the other one makes me feel not so bad.
  2. the put gives u more time for price to go in ur direction

    while having a stop does not
  3. jb514


    The problem is that you paid for that time
  4. Maybe that was a bad example. What I meant was, I'll devise more and more complicated strategys. Anything to keep from being stopped out, even though most of the time the loss is the same.

    Stops are so final, one minute you're in the market and then suddenly you're left with nothing but a loss.

    I can keep it going a long time if you'll just let me add one more option to the position.

    Old options never die, they just expire.
  5. Have you considering buying put spread instead of outright put ?
    i.e. Long 100 Google at 610, buy 1 Oct 600 put, then sell 1 Oct 570 put. In this way, when the 600 put expires, the 570 put must also expires, you will at least feel a little bit better.