Stop dealing options

Discussion in 'Educational Resources' started by NoMoreOptions, Apr 17, 2003.

  1. sail


    It is very difficult to understand how the SEC
    can continue to sanction the outrageous behavior at the "listed option exchanges".
    Pay for order flow, charge for canceling orders even though there are no real costs involved and the ability to cancel or make orders contingent on the behavior of the underlying security is fundamental to option trading,
    limit competition by prohibiting entering orders
    on both sides of the market, stifle innovation
    by restricting machine order entry without human intervention, allow insiders to break trades which go against them, allow market makers/specialists
    to turn off auto execution at will, allow same to back away from quotes and/or trade ahead of customer orders, etc.
    Its time to put padlocks on the front doors of these exchanges , punish the guilty and start anew with a level playing field.
  2. are you just upset because you lost money trading options or is there a real reason that this is set up? i am just trying to gauge since there is plenty to be made in the options market, you just might want to go to the sell side instead on buying them.
  3. Well directional or non-directional, buy or sell, call or put, and most complex combinations, they do not matter but all lose-lose. You are at disadvantage since the beginning. Your chance is not even closely as high as 50% but far below. Take my advice. Do not waste your leisure time and money in options. If you want to experiment and learn it, that is fine. If you want to bet on the underlying, it is also fine. But forget about betting on options with the wishful thinking that you may make a home run AND/OR make consistent profit. Good luck.
  4. Sounds like you took on more risk than you could handle, John.
  5. i think that you're forgetting that options are a NET market. the trades that you lose money on, someone else is making that exact amount. the disadvantage might be that people that get into the options market typically think that they WILL hit that "homerun" by buying low priced options. these are the very options that can be used to make money as long as you're the seller. try selling spreads or out of the money options to gain some income and stop trying to scare everyone into thinking that the options market is like the lottery. ive made a living trading the short side for years and its one of the only places that consistent profits can be made.
  6. NoMoreOptions,

    You are quite right about less than 50% chance. As a matter of fact, I believe the accepted number on profitable traders is around 5%. That's right, 95 out of 100 people lose at the trading game. Doesn't matter if you're talking equities, futures, options, or whatever.

    This is what makes it possible for people (like my acquaintance who we shall call "Steve") who has been raking in over $200,000 per month trading options.
  7. Yeah, learners can always try what you suggested. But be prepared to pay a significant price before they figure it out.

    It is not the selling (shorting) or buying (longing) that make you feel or just claim you can make a living by trading options. It is some advantages that you have over other people that you didn't cite. There are quite a few possible advantages or combination of advantages that you need. Help us or yourself figure them out, Pete, in case you haven't'.

  8. i thought that my suggestion was clear:

    "try selling spreads or out of the money options to gain some income" (instead of wasting money buying cheap options)

    try that instead of doing what most inexperienced traders do which is just to buy cheap options and then cry that they expired worthless.

    the only advantage that i or anyone else has is that they've done their homework or put in their dues (your words) and figured out that they need to be on the right side of the market first, in order to then learn how to make money. if you're on the wrong side to begin, then chances are greater that you wont succeed.
  9. I'm told selling is where the smart money is...
    #10     Apr 17, 2003