@TheDawn, these two posters (and others on this thread) are trying to show you the way, but you are not listening. And no, you haven't hit any nerve - you like to THINK you have, as if it's some sort of a moral win over others. Bro, I'm a retail guy - lots of others here are too - and I mean this in the most genuine way: the reason you are losing money is not because the MM's are screwing you, or that the options market in an unfair game, or that the big nasty institutions are milking us retail, it's because you do not have the experience, the level-headedness, the technical ability, the passion, or the strategy to be profitable. And your biggest enemy - by far - is your negative mindset. You seem be the kind of person who opens a trade expecting it to go wrong, and when it does, it gives you the secondary gain of being validated - "See, I was right, those fucking MM's are screwing me again." The best thing you can do - and again, I mean this to help you, and not to ridicule - is see a counsellor who is qualified in cognitive behaviour therapy. Or at the very least, buy a book from Amazon. Within two weeks, you will be able to see the thinking distortions that you are a victim of, and then when you read your own posts on this thread, you will see why others have responded in the ways that they have. Take this post in whatever way you choose - either with an open mind and a willingness to grow; or as a personal attack. Whichever way you do it, good luck.
Hey,troll number 1 actually agrees with your main point.Its your presentation/ reasoning thats waaay off.. Trading options is a really tough game. It's brutally hard,and that's coming from an "institutional trader" with 30 years experience who now trades his own money... Imho,if you aren't starting out at an IB,hedge fund,prop shop or a proven successful mentor, the deck is definetly stacked against you.. But like everything else in life,there are exceptions to the rule. keep your day job put the time in, read and backtest ,rinse repeat Start out small and understand preservation of capital.. Know thyself,comfort levels,tendencies,strengths and weaknesses Baby steps
You need to read my posts more thoroughly before you troll. This is not the first time that you troll before reading my posts: That's what I wrote, according to my own observation and experience and this is backed by academic research so I am not conjuring these things in my head. You don't want to accept this, like I said, either because 1) you are on a winning streak or 2) you are institutional traders or MM's who don't want my posts to scare off potential retail traders. This is my last time posting this. Don't want to waste my time arguing with biased idiots.
Thanks for you observation. I agree with you if you keep the same strike when you roll. However, if you roll down in strike, you are taking risk off the table and improving your P&L position.
And decreasing profit potential.. No free lunch Learn how to take a loss and find a new trade that offers the best risk reward... If you had funds to place one trade,would the roll be your trade of choice?? Are you in love with diagnols?? Skew trade??
That post is so wrong. Where’s delta in your statement. In the short run, 90percent of your pnl will come from delta. You ignore it. Gamma is related to theta. You don’t get one without the other offsetting. You aren’t qualified to trade options. 1. Because you are poor (though there are guys on here who turned a 10-20k account to six and seven figure accounts trading vol). 2. Because you don’t know anything about options but think you do (that guy is the exact opposite of that).
Delta?? LOL Gamma determines how fast delta changes when shit hits the fan. Who the fuck cares about delta anymore?? Everything is dynamic! Whatever strikes that you used in your original option position according to delta all go out of the door! Gamma is related to theta, of course when shit hits the fan. When there is no more volatility when determined by the "market", it's theta that calls the shot that kills the options price down to zero. Gamma is not related to theta anymore right? LOL I don't see no gamma offsetting when theta is ballooning? All I see is dealers hiding behind thetas to avoid paying up. This exactly confirms what I am talking about and it's confirmed by academic research. Anyway I tried my best to expose it to retail traders so they know what they are getting into. The budget constraint that I described in my posts is very typical of a retail trader with families. If they are too poor to trade in options according to you, then I agree, they should stay away but that still doesn't negate what I observed how options markets work so regardless whether one wants to participate in options trading or not, they should be aware.
But how do you know the lower/higher strike won't become ITM or won't have the same chance or higher chance of becoming ITM? This is like adding to the losing position by averaging down/up.