https://news.warrington.ufl.edu/faculty-and-research/retail-investors-play-a-losing-game-with-complex-options-according-to-research/#:~:text=“But less sophisticated and overly,John H. https://economictimes.indiatimes.co...in-options/articleshow/110554297.cms?from=mdr I still can't achieve a positive expectancy trading butterflies. The overhead of 4 options, commissions ($0.25 per contract) + bid/ask slippages, for each butterfly essentially ate up my edge. I am not losing money but not making any money either.
Once again you have to wait for an article to know this. I've been telling you guys this since I got here LOL. It's a total racket. If you can't do it with $0.25 per contract. Imagine trying it at $1.25 per contract which is the most banks offer... Even most exchanges, even most brokers online. You pretty much need a 1 SD move to just break even most of the time. Complex options are for people who have no directional ability. You're going to basically be chasing your tail long term. Go on Reddit to see how money is made on options. It's not pansy assing on the fence complex strategies. It's balls to the wall long call options.
Tell @poopy and @taowave, don't tell me. I am just paper trading butterflies. I only gamble buying single legs with real money.
Yes, I admit I am dumb, not very smart. Even at $0.25 per contract, a round trip trade is $2.00. A dollar here a dollar there and it adds up fast. The real killer though is the bid/ask slippage.
In the name of full disclosure,I had an "execution edge" the last two years and it has completely,100 percent dried up. Never had a down day other than a BS mark.. So take my name off the "chosen" option list..
1.25 per contract is a deal killer on 4 -5 legged monsters.. You are off on your 1 SD belief as well as no directional abilty... However,I am not disagreeing with your balls to the wall approach,but IMHO,you most likely need to trade with some form of stop...
If I cant get it,I doubt very few others can... I will only say that one hedge fund appeared to be overly aggressive in OTM options... Its 100 percent gone....