That's the hard part of trading options. Figuring out when there will be a vol event. If you can't do that, then you are just churning dollars. This is true of everything. You have to know which battles are in your favor.
That's not what I said. Stop quoting what I wrote out of context, fuckbrain. Why don't you quote the whole thing of what I said about delta? What I said was: You don't know how to respond to it because you don't know fuck about options. You made some profit trading options against us retail traders hiding behind your institution's $$ and think you've found the holy grail. Pathetic!!
dawn,BREATHE...in OUT You are way off on alot of the things you say,and NWD is very good at what he does..... If you are serious about breaking the retail trader curse(which doesnt actually exist),learn to take constructive criticism.. Unless you are a "pussy" unicorn trader like me,a 10 percent drawdown is most likely in the cards... And shouldnt you be relating max drawdown to returns??? You have alot to learn,open your mind and close your ego
That's not what I have been trying to say, idiot! Picking battles is nothing; it's what traders do. The problem with options trading is when the battle is in your favour, you don't get compensated enough to counter the loss that you suffer when the battle is not in your favour because of how gamma and theta dynamics work against you more than for you.
If you dont get compensated enough when you are dead right (battle is in your favor), you either break discipline, and didnt hold the position when it started to accumulate profit,or you didnt quite understand the nuances/greeks of the position that you put on. Are you soley talking about selling naked options??? Thats your only Get out of Jail free card...
@newwurldmn is just lucky. Win/loss ratio is not everything in options trading; it's the how much earn vs. how much you lose that is most important. If you made 10 wins of $500 each but loses $10K in one shot because of gamma and surprisingly theta doesn't work for you anymore, you end up in the red. But when you've lost 10 times for $500 each, this one time that you won, you won't be winning $10K; you will only be winning $4K because of theta and surprisingly gamma when it worked so well against you before all of sudden doesn't work for you anymore this time; it's theta now that takes over. This is what I am trying to illustrate. So it's when the "battle is in your favour", you are only winning a little bit but when "the battle is not in your favour", you are losing a lot more. I guess with you idiots, just outlining my theory was not enough; it was way over your head. I have to really illustrate it with numbers. It's you who need to close your ego and start opening up your brain.
Still doesn't change the fact that Boardwalk is earning you less than how much you are paying for somebody else's Baltic Avenue for the same amount of houses/hotels. That's the reality of options trading.
If I decipher your barely intelligible post,you are/were a naked option seller who doesnt delta hedge.. yes,when vol blows up in your face and rips your gonads off,its painful... And its 10x more painful if you dont delta hedge,or scramble to cover your gamma. Its clear you havent made money selling vol,so why not go back to the drawing board and trade, Verts, calendars,flys or straight direction via the underlying??? Better yet,check out Orats and do some simulations.... You arent ready to come off the bench