Risk reward sucks for options

Discussion in 'Options' started by wxytrader, Jul 29, 2024.

  1. LOL they know their math... basically he's saying the probability of making profits when buying is 20%, and the probability of making profits when selling is 80%.
     
    #41     Jul 30, 2024
  2. poopy

    poopy


    The bull SL thing in no book. Corridors in this context are delimited delta1 positions (up/down bounded).
     
    #42     Jul 30, 2024
  3. MarkBrown

    MarkBrown

    with selling options your profits are only limited by the amount of risk you are able to endure.

    with buying options your profits are limited by the amount of risk you are not able to endure.
     
    #43     Jul 30, 2024
    MACD and beginner66 like this.
  4. Well you weren't born speaking Optionese, so where did you learn it? :)
    Larry Mcgowens Options as a strategic investment?
     
    #44     Jul 30, 2024
  5. poopy

    poopy

    I’ve only read Hull.
     
    #45     Jul 30, 2024
    wxytrader likes this.
  6. spy

    spy

    I completely believe this 100%. You should try reading other books too.
     
    Last edited: Jul 30, 2024
    #47     Jul 30, 2024
  7. spy

    spy

    On the contrary, there's a very good reason... he's fragile, like the glass menagerie of complex orders he loves touting.

    You want to have a good conversation about finance, FFS don't listen to Beck. Go to Stern, Wharton, or Booth!
     
    Last edited: Jul 30, 2024
    #48     Jul 30, 2024
    Overnight and MarkBrown like this.
  8. spy

    spy

    Forget the vocabulary for a moment. Beck/Dest/Poopy (whatever he's masquerading as these days) likes to show off but he's a transparent, one trick pony. He has good knowledge of options but that's it. He's not an educator by any means. And, what really gets him off is a feeling of superiority. Ignore him.

    Natenberg is the intro and make sure you have a grasp of multivariate calculus. Move on to Hull but there's time for that (provided you know calc).

    And then, as they say, practice practice practice... but with pencil and paper at first; don't use real money you can't afford to lose.

    Also learn to swim code... otherwise it'll just be a hobby. A fun hobby, but nonetheless a hobby. No shame in that either.

    #nuffsaid
     
    Last edited: Jul 30, 2024
    #49     Jul 30, 2024
  9. ironchef

    ironchef

    It is the bull market, no skills needed.

    Except, when NVDA became the most valuable company ever, > $3T, with a PE north of 80, like CSCO back in 2000, perhaps a black swan is just around the corner. o_O
     
    #50     Jul 30, 2024