Direction is everything.

[scose-no-doubt]

Time wastage is the name of the game with options. The brokers tell the punters that the beauty of them is that you know, always, how much you are going to lose. The reality is that most lose all the time.

Don't you see the similarity to close stop losses? The market loves them. It's like having glasses doors so that they can see you coming.

Well if you don't have some idea of your theta exposure then you shouldn't be trading them in the first place.

I learned that the hard way. My first ever trade was a short oil option CFD. I've never lost money so quickly in my life lol.

 

[barjon]

no fun + snipping lulz threads - snipping scam threads = barjon

took me a while, but i got there

jon

p:s these 2 will go soon as well!!

 

[scose-no-doubt]

ban mervyn king while you're at it

 

[HowardCohodas]

Well if you don't have some idea of your theta exposure then you shouldn't be trading them in the first place.

I learned that the hard way. My first ever trade was a short oil option CFD. I've never lost money so quickly in my life lol.

When I did my work on random entry direction, to evaluate money management strategy, I had no idea what theta was.

 

[the hare]

It's a funny thing about hedge funds - they are considered very successful if they make 20% per annum.

Perhaps you should think about how much leveage they use (or dont use) to get their 20%

 

[Splitlink]

Well if you don't have some idea of your theta exposure then you shouldn't be trading them in the first place.

I learned that the hard way. My first ever trade was a short oil option CFD. I've never lost money so quickly in my life lol.

Now you are being rude!

 

[wackypete2]

Don't you see the similarity to close stop losses? The market loves them. It's like having glass doors so that they can see you coming.

Even as a short TF trader I can still agree with you on this. There are times I feel my stop loss is nothing more than a very powerful price magnet.
It's just part of the game though, only a losing round. Keeps me from getting knocked out of the ring.

Peter

 

[scose-no-doubt]

Now you are being rude!

not rude realistic. I spent a few weeks having a look at options pricing and calculation of the greeks a while back. Put the books down and haven't thought of touching one since lol.

Sometimes knowing what you don't know can save you hella money. knowledge stop loss lol.

 

[meanreversion]

Time wastage is the name of the game with options. The brokers tell the punters that the beauty of them is that you know, always, how much you are going to lose. The reality is that most lose all the time.

The simple reason that most options lose money is because, at inception, most of them are 50 delta or less - thus, you would expect most of them to lose money (ever heard of anyone buying a 75 delta option??). However, this is completely irrelevant to whether one can make money from buying options as a trading strategy.

If 20% of your options pay out big time, you'll still be in clover (the private equity approach).

I am familiar with options, having traded them on the sell side for many years, and the thing that strikes me is the sheer amount of guff spoken about them by the retail community. Unless you've done your homework, I'd advise steering clear of options, especially selling them to "collect the premium" (LOL at that term)

 

[Splitlink]

Do you remember the music company, EMI? In the late seventies they nearly went bust and the broker said to me "If I had a thousand to spare I'd buy EMI options at 1p each"

I didn't and they closed three months later at over 40p.

But everyone has tales of the ones that got away, haven't they?

 

[scose-no-doubt]

But everyone has tales of the ones that got away, haven't they?

Not me. I have nothing.

 

[wackypete2]

But everyone has tales of the ones that got away, haven't they?

LOL...on t2w?? None of the great ones ever seem get away!

Peter

 

[Ambrose Ackroyd]

Direction yes, but volatility with the direction gets you home.

 

[Ambrose Ackroyd]

One Direction will win the X Factor.

They don't have a big sob story and they don't cry enough.

For them to win, the public would need to see one of them sh1t his pants on stage and then have his nappy changed by Cheryl Criminal Cole.

That might earn the requisite amount of public sympathy which would translate into a winning share of the public vote.

WTF !!!!!!!!!

 

[meanreversion]

Is it just me, or is there something strangely unsexy about Cheryl Cole?

Dannii all the way!! She's going to win with Matt, no question.

 

[scose-no-doubt]

who is one direction. I've only seen the cheryl cole cum hunchback of notredame girl and the lenny henry guy out of the paper.

 

[scose-no-doubt]

Is it just me, or is there something strangely unsexy about Cheryl Cole?

Dannii all the way!! She's going to win with Matt, no question.

Danii used to be good looking but the childbirth has ravaged her.

in regards to C C i think the unsexy thing you're talking about is called an accent

 

[wackypete2]

Is it just me, or is there something strangely unsexy about Cheryl Cole?

Maybe she looks better in bed?

 

[meanreversion]

Danii used to be good looking but the childbirth has ravaged her.

in regards to C C i think the unsexy thing you're talking about is called an accent

Don't be northernist!!

As for Dannii, come on, she's a veritable milf.

 

[scose-no-doubt]

I'm not northernist im from the north. Just imagine her with a sexy french accent though. oooof.

skin on her face is too tight but still winkly. now two years ago... or even when she did that video with riva... kylie was better back then though.