Nitro, I attended a TOS seminar-not tradesecrets- the one I went to was free at the cboe. They taught high probability spread trading that is not directional in the sense that they are profitable if the market stays within a normal range- which TOS claims it does 60+% of the time. I'm guessing your mostly right on your second point from my experience which is mostly limited to spx options. While the bid ask spread is large enough to theoretically make money without movement, unless you are lucky enough to be hit with a market order (which is rare) you need some movement to capture a decent chunk of the spread. But with some movement, the large bid ask spreads are the other reason to trade options besides the leverage and limited risk possibilities.
Nitro, I would have to say for the most part your comments are correct, and the words you put in caps are what options come down to, being a trader, and ending up with some directionality to your positions at some point. (Don't understand first line of your post? A word missing?)
Hi, I understand Charlie Cottle is no more with thinkorswim.com. Does anyone know where he has moved onto? Thanx
Trading the underlying doesn't allow you to bet on volatility or skews in the distribution of future prices, nor does it allow you to comprehensively limit risk whilst retaining upside potential.
Charles Cottle moved? Oh no, he was the best thing since sliced bread. A really gifted trader, who could disect the most complicated positions (and a nice guy). If I remember right he was going to start a hedge fund. Maybe that's why he moved. If anybody knows the story I'd love to hear it.