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OptionTiger
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Everything posted by OptionTiger
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Join the course, its free Kevin
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Ken, I thought you were new to Options. You're unnecessarily taking complicated positions if you really are new. If you sold a call, you'd be a "naked seller", with exposure to unlimited losses. With Options, you need to keep it simple man..especially when you're learning. Whenever you have more short in your account than Long, you are naked short, and if you're a beginner you should never be naked short (Calls or Puts).
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Ken, of course you can sell your Long Call anytime. But by the way, AAPL is not at 402, your message is from yesterday , its over 450 .. Hari
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Larry, you're only now mentioning emerging markets. The problem in emerging markets is Options is too new to them, and they don't have platforms that come close to Thinkowswim. If they did, they'd start paying attention. Too bad, they're flying a plane without any instruments. I'm sure the market makers are only too glad to give these retail traders a fill in emerging markets. Hari
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Larry, no Options trader should trade without the Greeks - retail or otherwise. Why don't you check out what the Greeks are and decide for yourself..My previous post has a link to my course on Greeks. It will give you free access.. Hari
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Friends, there seems to be a lot of confusion on this post on "Option Greeks". Let me simply say, if you're trading Options without looking at the Greeks, you're flying an airplane without any instruments..Seriously. In the interests of clearing up (most of) your doubts on this subject, here is a course that includes an introductory but very detailed section on Option Greeks. This link will give you free access to my course. Enjoy and DON'T TRADE OPTIONS WITHOUT LOOKING AT THE GREEKS. Best Hari
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So what strategy are you thinking for AAPL ?
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What a great question - I could write for hours on this answer. When you short the ES Futures, your losses are unlimited if the ES goes up, and you know they rack up quickly, because Futures are more leveraged than even Options are. If you buy a Put Option, and the SPX goes up, your losses are limited to the amount you pay for the Option. So let's talk about how much you pay for the Option. 1) It depends on if you choose In the money (ITM), At the money (ATM) and out of the money (OTM). OTM's are cheapest, but they have lesser probability than ATM or ITM options. 2) You could choose Options that are further out in time (say 60 days or even more), and you have that much time to prove your theory that the SPX will go down. 3) If you are wrong and the SPX actually goes up, you can convert your Put option to a Bear Put or a Bull Put, thereby reducing risks further or giving yourself an outright chance to be profitable even if the market goes up. There are many many more reasons - with Options , you truly have a myriad number of "Options". Perhaps the biggest difference between Options and any other financial instrument is that Options are a game of strategy - much like Chess. They have roots in mathematics, because these instruments were created completely from Math. And Black and Scholes won Nobel prizes for this stuff. So everything is a formula, and if you construct your strategies in a mathematically sound manner, you can be consistently profitable. But let me be clear - Options have a learning curve. While you can learn the basics in 2 or 3 months, it wil take you a year to be an expert. But you're acquiring a skill for life, that no amount of old age or technological changes can make obsolete. This is true financial independence. Visit my site- OptionTiger is the home of cutting-edge Options trading education - I have really cutting-edge material for you to sink your teeth into and watch my videos on my Youtube channel from there. With Futures, Stocks or any other instrument, all you're doing is gambling. You may be using Technical analysis and chart patterns to give yourself an edge, but at the end of the day, its gambling..Period..Options are the only instrument where you don't have to pick direction, or you could be completely wrong in your direction and still make a profit on your trade, because of the mathematics involved.
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Point taken.. I only wanted to indicate that if anyone has any questions on Options, I'd be glad to help them.. Hari
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Introduce Yourself Here - Don't Be Shy!!
OptionTiger replied to trading4life's topic in Beginners Forum
Thats great Troy. Nice to know you're breaking even, but don't let this make you over-confident. Trading in general requires years of practice. Take things slow, focus on the learning...and keep your trade size very very small.. All the best Hari -
Hi everyone, Nice to see such an active forum. I'm an Options trader (expert level), and looking forward to interacting with fellow traders. If any of you have questions on Options, please feel free to get in touch with me. Best Hari Swaminathan - OptionTiger
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I think you should consider learning Options instead of Futures. Futures are primarily a day-trading vehicle, so if you can't do that then its tough to play that game. Options are, on the other hand, a strategy game. You can structure strategies that are primarily based on time decay, and put trades that are way out of the money (OTM). OTM may not mean much to you at this point, and that brings me to the next point. Which is, Options have a learning curve, so you must commit to learning it first for about 2 to 6 months.
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Mr Gekko..I'm glad you chose Thinkorswim, its easily the best platform out there, especially if you're going to be trading Options at some time. I have a great Thinkorswim tutorial on my Youtube channel Check it out.. Hari