Options Successfull Traders

This is a discussion on Options Successfull Traders within the Futures & Options forums, part of the Markets category; my question is for successfull traders only : Do you purchase options ( calls , puts ) risking your own ...

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Old Sep 6, 2008, 3:50pm   #1
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Options Successfull Traders

my question is for successfull traders only : Do you purchase options ( calls , puts ) risking your own money OR you purchase options risking some of the profits u have made from futures trading ?
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Old Sep 6, 2008, 10:43pm   #2
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The best way to make money with options is by selling them rather than buying them .... However, my apologies, I still don't class myself as a particularly successful trader.
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Old Sep 6, 2008, 10:48pm   #3
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tar started this thread Thanks , intresting , do writting options making money for u in the long run ?

I mean options here forex , silver , indices
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Old Sep 7, 2008, 1:25am   #4
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It isn't anywhere near as simple as "selling will make you money" or "buying will lose you money"...

some people will just trade options for the Delta, as an alternative to trading the underlying stock or future...

however, to make the most out of options trading, you should not consider your position as Long / Short the options, rather Long / Short each of the Greeks... the trick is then to build a position in the greek you have a view on, then employ the most cost and risk effective way (through buying and selling the options and the underlying) to manage the exposures you are carrying on your book.

Note: I'm not an options trader
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Old Sep 7, 2008, 1:51am   #5
 
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does anyone have an opnion about "spread trader systems"?....i am considering them for their 6,000 course
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Old Sep 7, 2008, 3:55am   #6
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tar started this thread Good ,, the reason y i asked my question is that many options expire worthless , and the profits from normal trading is not that much as a percentage from the account if we use low risk . so i was thinking is it right to use profits from normal trading to purchase options to gear up the account expanding
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Old Sep 9, 2008, 10:40am   #7
 
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Originally Posted by tar View Post
my question is for successfull traders only : Do you purchase options ( calls , puts ) risking your own money OR you purchase options risking some of the profits u have made from futures trading ?
Hello tar,

This way of thinking will get your account blown up before you know it!!

If you can't successfully measure the market direction for a particular instrument (stock, index, forex etc.), don't even bother entering an option trade. The profits you have made, and the money you have in your pocket are the same. This is a mental rule that a trader must write on a piece of paper, and stick it on his trading terminal.

Especially for people just starting options trading, this is the mentality that makes them lose money consistently. It's this "false" impression of security writing options gives, that makes them many times reluctant to get out of a bad trade. You know, "I still have money, lets wait today and see what happens. I will get out tomorrow". No matter what your style is, no matter how greeks fall into your system, YOU NEED TO KNOW HOW TO MEASURE THE MARKETS SUCCESSFULLY.

In my book, a novice should start papertrading the plain vanilla side of the options, to see in real time the dangers and rewards of this type of trading. If he/she can master this, then proceed to options writing.

You should learn how to walk, before trying to fly.

famagusta
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Old Sep 9, 2008, 2:20pm   #8
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up before you know it!!

If you can't successfully measure the market direction for a particular instrument (stock, index, forex etc.), don't even bother entering an option trade.
You can trade options and be direction neutral if you so wish-it costs a lot and is time intensive but it's possible....
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