Why I don't go long options

Discussion in 'Options' started by wxytrader, Apr 19, 2024.

  1. wxytrader

    wxytrader

    upload_2024-4-19_8-15-21.png

    upload_2024-4-19_8-36-21.png


    The statistical retrace would bring to you to the .38 fib and for a timeline around APR26. As you can see @ expiry if you had buy an APR26 18 strike call you won't fair too well.

    Buying atm performs a little better, but the risk is also higher, and it still requires a timely move to 17 by APR22 or you will be underwater fast.

    upload_2024-4-19_8-28-54.png
     
    SimpleMeLike likes this.
  2. zdreg

    zdreg

    Professionals don't trade short term options.
     
  3. wxytrader

    wxytrader

    Ya thanks like I didn't know leaps existed. Clearly leaps are favorable but you need capital, and need to time it properly to maximize gains or suffer larger losses if it goes against you.
     
  4. zdreg

    zdreg

    Leaps by definition are long term instruments when they are initially listed. Time is on your side.
     
  5. wxytrader

    wxytrader

    How long are we talking? Sure you can go way out and nothing happens, but once you get within 6 months if you aren't itm the time decay is going to destroy you. Been there buddy...not pleasant. Not to mention the spreads are usually garbage so once in you are committed.
     
  6. taowave

    taowave

    Present a backtest,this is absolutely worthless
     
  7. Hello wxytrader,

    How much money have you made this week trading the markets man?

    I will go first. I am at $3400 so far.

    See below.

    https://www.elitetrader.com/et/threads/algo-quant-traders.379241/#post-5956860
     
  8. newwurldmn

    newwurldmn

    this is the only post I read in this thread.
     
    taowave likes this.
  9. taowave

    taowave

    Define "Professional"..........

    Define "short term"..

    Does Professional = profitable??




     
  10. wxytrader

    wxytrader

    Backtest are worthless...I do front tests with EW. :)
     
    #10     Apr 19, 2024