Why choose options trading

Discussion in 'Options' started by Jfranco_2003, Sep 8, 2019.

  1. Hello, why you decided to put your money in trade options instead futures or stocks markets?

    More profiable? Easier? Or why?

    Or why you don't trade options and like other markets?

    Thanks you. Jf
     
  2. Turveyd

    Turveyd

    The R:R looks great, it's easy, no PDT daytrade rules, no worrying about SL on the stock, your options value is your SL so capped loss ( unless your naked ofcourse ).

    I don't trade options, about 18years since I last did, the time decay is a nightmare.
     
    Jfranco_2003 likes this.
  3. krugman25

    krugman25

    1)capital efficiency 2)premium selling can provide a nice edge
     
    PriceJuggler and BlueWaterSailor like this.
  4. destriero

    destriero

    cvds16 and KeLo like this.
  5. leverage (I.e. allowing greater diversity with similar capital usage), profit sources (time, direction, fear/greed).
     
  6. Overnight

    Overnight

    Mmm, I thought options on certain futures were excluded, if they were non-equity products? My basic understanding of it was, if the underlying of the option was not regulated by the SEC, the PDT rule would not apply.
     
  7. KeLo

    KeLo

    futures ≠ equities

    PDT applies to equities and equity options, but not to futures and futures options.
     
  8. Robert Morse

    Robert Morse Sponsor

    PDT only applies to Equities and Options in a Margin account (Cash accounts have no PDT rule) -nothing in a futures account is regulated by FINRA, which is where the PDT rule comes from.
     
  9. Robert Morse

    Robert Morse Sponsor

    Putting aside that I'm not actively trading right now because my focus is sales, if I were, I would open a Futures account and a Portfolio Margin account. This would give me access to Futures, Options on Futures, Equities, and Options on Equities. Then, I would have the tools I need to react to what I see in the market. My process would not be to say I want to trades stocks today but to monitor a number of stocks and futures. When I have an opinion as to what I expect to happen, examine my choices and how much risk I want to take, see how options are trading, then react,

    I would likely follow Crude, Gold, Silver and Financial Futures. Then I would pick about a dozen NASDAQ 100 names and follow them. Anything else would be driven by what I read in the news. I would try and enter each day with an open mind.

    Bob
     
    #10     Sep 8, 2019