11-09-2021, 08:51 PM
(11-09-2021, 06:12 PM)Navi Wrote: [quote='fenders53' pid='29702' dateline='1636322596']
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I understand; options are a whole different animal. I tried to learn about it, and still don't get the gist of it, hence why I stay away from it. Thanks for your feedback. I tend to prefer being bullish as well, but I do eventually plan on adding short trading to my skillset (assuming I get comfortable with bullish first). I'll certainly keep this in mind.
I am no expert on options, trust me, but do know enough to make $$ and stay out of trouble.
Options, for the retail traders like us, are not that complicated. A couple of thoughts to try and keep in the back of your mind. When you sell an option, you MAY BE OBLIGATED to do something down the road. When you buy an option you MAY HAVE THE OPPORTUNITY to do something down the road.
Try some index spreads on paper, aiming to collect 1/3 width of the strikes, this will already give you a 66% chance of success. Pick good spots on chart and higher volatility environment and you'll do even better. Move on managing early and your win rate will ramp up.
Your option position is your expression of future underlying price or it's volatility. Fenders and I disagree whether there is an edge in selling or buying options (there isn't) it's just a different way of expressing your view of the market and how you wish to (hopefully) make $$.
Just don't read Natenburg or Cottle option books, my head nearly exploded.