The very definition of the edge is "an intrinsic quality of your setup the improves your changes of winning". E.g. it could be cost of capital (if you cost is lower then most people, you can play interesting games), ability to make markets and this collect bid/offer spread etc. While, as I said before, a retail trader has certain advantages due to his unique position in the market place, you need to think hard about how to use those edges.
I had longs , I closed a few and opened shorts using a strategy which would gain on the gamma , this strategy would very little on expiry higher.It gave me 2 months to achieve a profit on a pullback ,otherwise losses neglible on shorts.my strategy was ready for for options gamma upside profit Wthin two months a pullback will be gamma profitable omshort side , so in the meantime sold several weekly straddles . upside short risk is covered , because I have trades open already on another strategy makes a fotune for upside breakout. Now understand sun tzu and options https://www.elitetrader.com/et/threads/sun-tzu-art-of-trading-war-the-edge.304608/ Options is a zero sum game , understand this , at any given point , but options is a great game when mutiple strategies are ready for sun tzu “The supreme art of war is to subdue the enemy without fighting.” “Supreme excellence consists of breaking the enemy's resistance without fighting.” “Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win” Every knob looks at option formula and sucks it and option formula pays income to winning warriors
You have zero edge , unless you have a mental edge .All your illusionary edges are worth zero , if you can't execute your edge.
#2 is false. You always need to know what is going to happen next in order to make money. You need to also plan ahead for a worst case scenario and plan how to handle it at least try to grasp an approximation of expected market situations. (ie Fed reporting in next week, ex-dividend dates,etc..) I have been trading options for years and I am confused here all this talk about points??.
Perhaps someone can ask him why he is buying spot and selling a call when he should be selling that put?
The thread title is akin to stating that there is edge in getting a no-interest auto loan. The rate is embedded in the price of the car. Or that an 8% note on a biotech is edge bc it's trading at coupon 500bp over Treasuries. It's sad that the least knowledgeable feel the need to express it.
If you are who I think you are sir, delighted at your posting. Yes, your point about greed and stupidity overwhelming logic is all too true.