andycan
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#Profitaker said:Yes, or buy them, as the case may be.
Andy
I've no idea what Soc said. But I thought that the general gist of this thread was to prove that there is some inherent edge in writing rather than buying options. So far, I've not heard any logical argument to support this opinion, never mind proof positive.
If your assertion that Put sellers have an edge over Call buyers in a bullish market holds any truth, then it must logically follow that Call sellers have an edge over Put buyers in a bearish market. From those two statements it must logically follow that Put sellers and Call sellers always have an edge over buyers in any market.
Profitaker
indeed they do DOM gives them that advantage not always but most of the time it will
i did an analysis of options in grains many years ago and what amazed me even when direction was in the favour of the buyer somehow they almost always managed to expire in favour of the writers, and when it did hit the strike and technically were in the money it was not sufficient to compensate for the premium, thats why i believe the writers have the edge only by seeing my contract expire worthless when i first started has convinced me of it
i now when i do buy them utilise a completely different approach, thats is when a sharp move is coming i capitalize