What strategies do you guys use?

Discussion in 'Options' started by klurby, Jul 1, 2011.

  1. Carlons

    Carlons

    my only working strategy is following the trend
     
    #171     Jul 23, 2011
  2. Betapeg

    Betapeg

    James Cordier says in his writings that so far OTM options with extremely low deltas require a large move on the market for the option price to move much. I'd like to ask these guys about the things you guys brought up.

    We test new strategies with the most minimal capital (1 contract orders) possible so a loss here wasn't hard to take. Just have to figure out how to make it work if it can work. The book made such a seemingly good case for it. And their reputation appears spectacular.
     
    #172     Jul 23, 2011
  3. Betapeg

    Betapeg

    I have Options as a Strategic Investment. The bible of option trading ;) Good pick. I'll check out that other book you mentioned. Thanks!
     
    #173     Jul 23, 2011
  4. You're relying on people who don't know wtf they're doing. Reputation for selling nickels and dimes? There is no skill involved and it's extremely reckless.

    You could've received a much larger credit with a vertical and kept the risk limited.
     
    #174     Jul 23, 2011
  5. JSHINV

    JSHINV

    Well Betapeg if you have read it, he warns against what you are doing.

     
    #175     Jul 23, 2011
  6. Trader13

    Trader13

    Natenberg and McMillan are great reference books for options. A lesser known book that addresses many practical aspects of options trading is The Business of Options published by Wiley. The author, Martin O'Connell, is witty and good humored which makes it an easy read for mere mortals like myself.
     
    #176     Jul 24, 2011
  7. gibson02

    gibson02

    So guys ? is it still possible to play long call or put in short term time frame ( for swing trading 3 to 5 days ) ? Does anyone here know how to do it ?
     
    #177     Jul 24, 2011
  8. daveyc

    daveyc

    far otm options with extremely low deltas can also destroy your account. there is also volatility to consider. and when you sell those far otm options it is likely the market will move against your position and you will either close the trade for a loss or wait out the drawdown and hope enough time passes.

    all the traditional stategies can work but there will come a day when they come and take your money. very difficult business. i am only having success with one strategy even though i have to deal with drawdowns due to skews but its the only way i've seen to at least have a chance and sleep at night. and i can't give it away, sorry.
     
    #178     Jul 24, 2011
  9. joneog

    joneog

    Delta? And what happens to the delta when it moves against you? Which way does it go? And what about the rate-of-change of the rate-of-change of the delta? What about the sensitivity to a change in volatility?
     
    #179     Jul 24, 2011
  10. I would recommend, as I always do, Euan Sinclair's books, both of them. They're my favourite by far.
     
    #180     Jul 24, 2011