Profitable Options Trading Strategy

  • Thread starter memetrades
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memetrades

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Hi All.

I've been researching & playing around with trading options for about a year now. I've done a few trades here and there, but nothing large scale or concrete. I've been having problems with doing the Due Diligence, chart analysis, etc. to figure out if a play is the right one consistently and be confident about it.

Most of the trades i've done previously have been either following high Call volume trades or large changes in Open Interest. Besides searching big news about a company that comes on my radar, i find it hard to pinpoint the catalysts sometimes.

The only ways i've been trying to analyze volume are with Fidelity's Option quote chart to see which volume appears to be opening or closing contracts, and i'm not even sure if that's reading it right.

Looking for any good advice on doing the Due Diligence for these trades, possible profitable strategies, ideas on analysis of options trades, etc. Would anyone be willing to help?
 

Windlesham1

Well-known member
477 43
Hi All.

I've been researching & playing around with trading options for about a year now. I've done a few trades here and there, but nothing large scale or concrete. I've been having problems with doing the Due Diligence, chart analysis, etc. to figure out if a play is the right one consistently and be confident about it.

Most of the trades i've done previously have been either following high Call volume trades or large changes in Open Interest. Besides searching big news about a company that comes on my radar, i find it hard to pinpoint the catalysts sometimes.

The only ways i've been trying to analyze volume are with Fidelity's Option quote chart to see which volume appears to be opening or closing contracts, and i'm not even sure if that's reading it right.

Looking for any good advice on doing the Due Diligence for these trades, possible profitable strategies, ideas on analysis of options trades, etc. Would anyone be willing to help?
I have never found open interest useful- these are not options that exist in isolation generally, so you don't know what the intent is. Same with any level 2 -I trade only monthly FTSE index options as I don't like to waste money.
 

AliForexTalks

Junior member
34 2
The most profitable options strategy is to sell out-of-the-money put and call options. This trading strategy enables you to collect large amounts of option premium while also reducing your risk. Traders that implement this strategy can make ~40% annual returns.
 

Windlesham1

Well-known member
477 43
The most profitable options strategy is to sell out-of-the-money put and call options. This trading strategy enables you to collect large amounts of option premium while also reducing your risk. Traders that implement this strategy can make ~40% annual returns.
It's also infinite risk- and if every clown decides they wnat to sell options ,you know what happens? You get pennies for ££££ of risk. think again. Your profit is limited to the premiums take in which these days are rubbish. Or you could follow my FREE blog http://optionsinvesting.co.uk/244-w-e-nov19-big-lizard-xmas-trade/
 
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trendie

Legendary member
6,858 1,416
The most profitable options strategy is to sell out-of-the-money put and call options. This trading strategy enables you to collect large amounts of option premium while also reducing your risk. Traders that implement this strategy can make ~40% annual returns.
Didnt a big hedge fund get spanked by wallstreetbets, or robinhood, or somesuch recently?
Was that Gamestop?
 

Windlesham1

Well-known member
477 43
Didnt a big hedge fund get spanked by wallstreetbets, or robinhood, or somesuch recently?
Was that Gamestop?
There's a history of these 'clever clogs' getting trashed Nederhoffer etc. there are numerous examples every year. The negative oil price destroyed a lot of people
 
 
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