Your inference that he should stop trading options due to his level of sophistication is the only point we're making here. It was pretty comical.
"Your inference that he should stop trading options due to his level of sophistication is the only point we're making here. It was pretty comical." That inference assumption comes from your side. I didn't say anything about level of sophistication. I expressed my opinion of a comment he made. Good so we all had a laugh.
In that case, could you please clarify what exact harm is going to come to me if I look at options from vol traders perspective? BTW, those who do not believe that vol comes before price, ask yourself - "how would a sell-side trader price an option on a stock that has no liquid option market?"
Right, and by extension, a ESOP player at facebook who needs to write a collar would go to their liquidity provider (IB) who would use the stat-vol of the underlying asset and apply some non-Markovian model (one example).
i cant believe the b.s. some guys waste their time debating; its amazing to me how much you guys over-think everything with options. Look, if you are good a direction then you will usually do really well with options. There are important times when vola is important. But over 20 years I gotta tell you that every time I am "sure" about direction or get lucky to be correct, my long options and short (sold) options do just fine. Look at options from a vol traders perspective. Great! Now what dos that do for your profits? If it helps you, then why argue about it. If you are talking about volume, then what's the point?!
you can trade on margin or trade futures/CFD/forwards instead. options are there to either take a limited loss view on the underlying or to trade vol.