Who buys options?

Discussion in 'Options' started by Aquarians, Feb 21, 2021.

  1. caroy

    caroy

    No great answer on this one for me. I think I just find myself more comfortable with /es than spx. i like the trading hours on /es as I can trade it overnight as well. I also like the day of straddle strategy in corn, wheat, and beans. But alas TW doesn't have the grain weeklies so I have to wait for them every 28 days and TW is missing the softs as they don't want to offer ICE products due to the data costs.
     
    #11     Feb 22, 2021
    Hari Seldon and cesfx like this.
  2. traider

    traider

    I buy them when I lost 10x what I sold them for. :p
     
    #12     Feb 22, 2021
    vanzandt, Hari Seldon, guru and 2 others like this.
  3. ironchef

    ironchef

    I do buy ATM options.
     
    #13     Feb 23, 2021
    Windlesham1 likes this.
  4. qlai

    qlai

    Why?
     
    #14     Feb 23, 2021
  5. ironchef

    ironchef

    Why? You think I am giving free money away?

    Kidding aside, when the expected move is > IV buying ATM calls can be very profitable.
     
    #15     Feb 23, 2021
    qlai likes this.
  6. Bekim

    Bekim

    Once in a while I will buy them leading into earnings and sell them before the event.
     
    #16     Feb 27, 2021
    ironchef likes this.
  7. ironchef

    ironchef

    May I ask what is your win rate and expectancy?

    I generally found playing earning didn't work out too well. Most of the time it was priced in. I had better luck playing other special events.
     
    #17     Feb 27, 2021
  8. caroy

    caroy

    Curious to the answer to this as well. I haven't found a good strategy around earnings yet. I like the IV is juiced for flies and taking advantage of that on an expiration day before earning earlier the next week. But outside of that i haven't figured it out.
     
    #18     Feb 27, 2021
  9. Bekim

    Bekim

    Certain stocks show a bullish momentum leading into earnings. You buy the options before earnings they build in oval helps offset some of the theta decay and you sell the day before earrings so you are not hurt by the vol crush
     
    #19     Feb 27, 2021
  10. Imagine one guy wants to buy carrots but is selling oranges, peaches are cheap as nobody wants them. Same deal with options -don't think of them in isolation. The market is massive, and someone is looking for a peach, a carrot and he has a big order for his overpriced oranges. Like open interest it means nothing in and of itself, but at times you will see time-stamped trades that obviously correspond, and you spend a week trying to figure out what that trade is, not undertanding there are other positions at different expiries. Options are NOT boring.
     
    #20     Feb 28, 2021