first option trade a winner.

[CodeBreaker528]

I see that options are no different than futures, well the fundamentals that is.
I bought a 900 Nov Soybean put two days ago for 15'6, two days later I'm in the money.
I see that timing is everything. Last week when the market was trading around the same price th premium was 20'6.
I'm going to hold on for a few more days maybe an exit on Tuesday or wednesday before the slight rebound, then sell again friday or monday before the second drop.

 

[Rhody Trader]

Options are very different from futures. When you're trading futures you know the price is going to track the underlying very closely because of arbitraging. With options, however, changes in the impled volatility priced into the premium can mean the difference in you making or losing money, regardless of what's happening in the underlying.

 

[mrsoul]

I see that options are no different than futures, well the fundamentals that is.
I bought a 900 Nov Soybean put two days ago for 15'6, two days later I'm in the money.
I see that timing is everything. Last week when the market was trading around the same price th premium was 20'6.
I'm going to hold on for a few more days maybe an exit on Tuesday or wednesday before the slight rebound, then sell again friday or monday before the second drop.

Stay away from options.
You are guaranteed to lose all your money in the long run because you have to pay a time premium.
The futures are a much better bet because you don't lose time premium each day.

 

[CodeBreaker528]

Options are very different from futures. When you're trading futures you know the price is going to track the underlying very closely because of arbitraging. With options, however, changes in the impled volatility priced into the premium can mean the difference in you making or losing money, regardless of what's happening in the underlying.

I don't know much about trading options, but what I do know is that they are not to be traded for any short term moves. I also trade futures, My plan is to buy options when I think a long term move is about to happen. I understand that buying too close can trap you into a loss if the market stalls. I hope I didn't give you the impression that I was going to day trade options.

Stay away from options.
You are guaranteed to lose all your money in the long run because you have to pay a time premium.
The futures are a much better bet because you don't lose time premium each day.

Thanks for your opinion...
But I feel that the time premium would only be a concern IF you had no clue of what the market was doing or if a person bought an option that was too far out (contract month or strike price). There's money in options, I'm up $825.00 on fridays close, with only one option that I've only been holding two days.
There's no limit to your loss when trading futures, I'd rather loose premium due to time than money with each tick in the wrong direction. I still trade futures though, I used this option as a trailer.

 

[Rhody Trader]

The futures are a much better bet because you don't lose time premium each day.

You might want to check your facts there. Futures contracts have a premium or discount built in which decreases as expiration approaches much the same way options have time decay (in some cases almost exactly the same). Whether it works for or against you depends on which side of the trade you're on.

 

[Rhody Trader]

I don't know much about trading options, but what I do know is that they are not to be traded for any short term moves. I also trade futures, My plan is to buy options when I think a long term move is about to happen. I understand that buying too close can trap you into a loss if the market stalls. I hope I didn't give you the impression that I was going to day trade options.

I wasn't talking in particular about day trading. My point was simply that sometimes price change in the underlying isn't the biggest factor in whether an option is profitable for you or not - regardless of timeframe.

 

[CodeBreaker528]

I wasn't talking in particular about day trading. My point was simply that sometimes price change in the underlying isn't the biggest factor in whether an option is profitable for you or not - regardless of timeframe.

Oh Okay. Well I took $725, the best premium I saw would have been $900. Not too bad. I'm waiting for another signal now, may be today.

 

[gooseman]

I don't know much about trading options, but what I do know is that they are not to be traded for any short term moves. I also trade futures, My plan is to buy options when I think a long term move is about to happen.

then you're paying a hell of a lot of premium for a long dated option which will decay. in addition, say you buy a call and future rallies, vol could get smashed and the vega move can quite easily offset the delta move. keep going matey but i think you need some more research into this.

 

[pit pony]

Oh Okay. Well I took $725, the best premium I saw would have been $900. Not too bad. I'm waiting for another signal now, may be today.

Who do you trade your options with please, i trade mine through ProSpreads, i can only buy into a position and exit if its made anything or has value.

 

[CodeBreaker528]

I bought the put for 15'6, best I saw was 34'0. I took 30'2.

 

[sharpie458]

Stay away from options.
You are guaranteed to lose all your money in the long run because you have to pay a time premium.
The futures are a much better bet because you don't lose time premium each day.

Unless of course you plan your entry and exit so as to make very good use of the premium in as short a time period as possible. In other words if you can sense volatility coming before the holders and the writers of options there is an opportunity to jump in and lock down the premiums as they are and then sit back and watch the show as wild swings erupt. In your favor.