POLL: Your general approach

I lean towards buying, I find the risk/reward is much better.

 

But do you find the expectancy is better (i.e. risk:reward ratio, once adjusted by probability)...

 

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Figure options, because of slippage,sellers edge, leverage & commissions;
tend to help produce a more sawtooth non smooth equity curve.

Many, but not all insurance companies make money investing & selling;

however prefer
occasional derivative buying
but cant think of a worse market than options to hypertrade for an average trader.

 

Yes, much better, especially when you take into account the low requirement for capital.

 

I don't like to play insurance company, so I only buy options.

 

I suppose it boils down to personal psychology...

Net seller: Low expectancy per trade but high probability of a win

VERSUS

Net buyer: Low probability of a win, but the occasional massive home run...

 

Options? I don't trade 'em. Not enough leverage for me.