Hi tnsn2345
I kindly request you to stop to give the expression that your statements are the only existing true in the option trading world.
Many of the most short time strategies are very lucrative at the moment, the user knows how to trade them and is aware about the risk in theta they take and how to leg in and out at the necessary time.
I have not seen you talking about any very high profitable very short time option strategy any where. I only see, that you oppose against them as a successful trading strategy.
I do not agree with that at any time.
I am clear, that I trade other markets and I am clear, that I never ever made such statements by knowing that others may not have the possibility to trade such short time strategies.
You on the other hand try to show of, that all what you say is the only true and I dislike this very much as you not give room to other markets which give this possibility. So kindly come down to explain what you can explain and stop to give the expression, that what you know about short time strategies is the only thing which exist on earth.
Tc
DanPickUp
Dear Dan,
First of all thanks for writing here.
To be constructive in our discussion, let me address the points (my point of view) so as put us on the same page.
Many of the most short time strategies are very lucrative at the moment, the user knows how to trade them and is aware about the risk in theta they take and how to leg in and out at the necessary time.
- A 100% return in a month (Yusuf - sub portfolio) may just address this in the TPL portfolio I mentioned earlier. And this is a 1 day TF portfolio. Same can be done with intraday portfolio too, which is not possible for me to post it here. One can consistently generate 5% intraday (at intraday portfolio level)more than 50% of trading days in a month, and effectively manage risk too, by having undirectional and at times directional positions.
- Also, you would have seen my posts earlier in this thread, giving some names as 'Maggi' trades (which are 2 minutes trades - enter at 3.29 pm (closing time for Indian markets) and exit on the next day at 9.15 am (opening time of Indian markets), these trades (aka jackpot options trades - done through stock options, focusing only on gap up / down opening) can give you 100%, 200%... 400 %... returns with just 2 minutes in the market. Well these are speculative trades with higher risks, still the Risk:Reward can be as high as 1:5.
I have not seen you talking about any very high profitable very short time option strategy any where. I only see, that you oppose against them as a successful trading strategy.
I do not agree with that at any time.
.
The fundamental premise on which I function is to reduce risk, and the same feel you will get in my posts everywhere. The second premise, I trade high probabily trades and not necessarily highly profitable. I think this is where we have a disconnect. IMO there is nothing like successful trading strategy, it is all about probability of your view being correct. So if you think there is a very high probability of movement of the UL then you may just buy naked options. If the probability is medium to high, you may sell naked options. If still less, then you will build options setup with multiple legs and strikes (depending on what TF you are trading and what is your holding period). And so on...
I am clear, that I trade other markets and I am clear, that I never ever made such statements by knowing that others may not have the possibility to trade such short time strategies.
You on the other hand try to show of, that all what you say is the only true and I dislike this very much as you not give room to other markets which give this possibility. So kindly come down to explain what you can explain and stop to give the expression, that what you know about short time strategies is the only thing which exist on earth.
Dan, I have not trades in your markets, but you would have been here and seen so many posts on the Indian markets, the liqudity and different months options. How they all function. For the next month, even for the same month options, you will need to put effort to get the right buying /selling prices for OTM strikes options. The impact cost is very high, you just can put a limit order for a substantially higher quantity and expect it to be filled in even by 10 seconds !!. I you have to buy/sell options more than 15000 (300 lots) you will need to place multiple orders (exchange cap is 15000), so if you quantity is more than place multiple orders or employee dealers. Here on this forum most of us are retail traders. Even for institutions trading here, especially in options, they have a tough time relating to executions, which is generally not the case for stock or index futures. For this reason you will not find many structured products (captial guaranteed, with multiple payoffs depending on the performance of the captial markets) are available to the public here. Such products, when offered (at discreet time intervals) are for a very limited period and with a cap of amount that the institutions wants from the investors. Hence all those legging in and legging out is quite difficult not only for institutions but also for retail traders. I have earlier also mentioned about spiderman trades -swinging from one building to another, holding, leaving the rope and continuosly moving (which I do carry in relatively smaller proportion) in this thread, which is nothing than what you are mentioning - legging in / out. In such trades you are always in the market, you always have a view, flat, bullish, bearish, increase/decrease in IV, changes in theta, time to expiry etc. I do such trades not with intention to make big money but it helps me get the nerve of the market for most of the times. I trade a discretionary trading system for decision making and such trades help me.
I look forward to your contribution here. Again, I feel we both are equally stubborn in our expressions and thoughts, but I do not dislike any theories or anybody. I just like mine more than others, maybe.
Regards,
