Question about option liquidity

Discussion in 'Options' started by breeze, Jan 2, 2010.

  1. breeze

    breeze

    From the link at the end of your post, I went to your blog and I am still reading your blog. I just ordered one of your book - Rookie's Guide to Options. I also ordered two other option book, The Volatility Edge in Options Trading: New Technical Strategies for Investing in Unstable Markets, and The Bible of Options Strategies: The Definitive Guide for Practical Trading Strategies. I hope I will learn a lot about option from your book.

    Thanks for the warning about difficulty of making money from buying options.
     
    #21     Jan 3, 2010
  2. spindr0

    spindr0

    There are tradeoffs with every strategy. You could put on much bigger positions with options, have a fixed max risk and make a bundle. But in order to do so, you're going to have to be right not only about the direction but in a specific time frame.

    Don't knock small gains. You'd be surprised how they add up when you trade volume and control the net losses. You can even achieve that with a high win rate despite a less than even dollar win/loss ratio or a lower win rate with a higher dollar win/loss ratio. It's the bottom line that matters.
     
    #22     Jan 3, 2010